Arbitration is the final stage in the credit card transaction dispute resolution process. When the pre-arbitration stage fails to resolve disputes, both parties can submit the dispute to credit card organizations (such as Visa or Mastercard) for formal arbitration. The arbitration decision is final and binding.

Detailed Arbitration Process

1. Initiate Arbitration: If consensus cannot be reached during the pre-arbitration stage, merchants or issuing banks can decide to submit the dispute to the credit card organization for arbitration.
2. Submit Evidence: During the arbitration stage, both parties need to submit all relevant evidence and documents to support their respective positions. Merchants need to provide detailed transaction records, signed receipts from cardholders, proof of delivery of goods or services, communication records with cardholders, etc.
3. Credit Card Organization Evaluation: Credit card organizations (such as Visa or Mastercard) will evaluate and review the evidence submitted by both parties to determine the factual circumstances of the dispute.
4. Adjudication Result: The credit card organization will make a final decision based on the evaluation results. The decision may include supporting the issuing bank's chargeback request, or supporting the validity of the merchant's transaction. Once the decision is made, it is final and binding, and both parties must accept it.
5. Fund Processing: Based on the arbitration decision, corresponding fund processing will follow. If the decision supports the merchant, the disputed amount will be restored to the merchant's account. If the decision supports the issuing bank, the disputed amount will be refunded to the cardholder.