Flow in Mastercard disputes

  Mastercard resolves the disputes using the flow shown in the following figure:

The below are the key points that determine this flow: 

• When a cardholder disputes a transaction, the Issuer sends the transaction to the Acquirer along with the chargeback reason through the card network. 

• The Acquirer might send the received chargeback to the merchant or respond directly. The Acquirer can respond by accepting or representment. If accepted, the system resolves the dispute in the Issuer's favor. The system forwards the representment to the Issuer through the card network. Partial acceptance is also possible. 

• The Issuer initiates the pre-arbitration against the Acquirer through the card network if the Issuer is not ready to accept the response. 

• The Acquirer reviews the pre-arbitration along with the merchant (if needed) and sends the pre-arbitration response of acceptance or rejection to the Issuer through the card network. 

• The Issuer reviews the pre-arbitration response received, and the Issuer files an arbitration case with the card network if the customer is dissatisfied with the response. 

• The Acquirer has ten days to review and respond to arbitration before the card network reviews the arbitration along with the merchant (if needed). 

• If the Acquirer rejects the arbitration, the card network reviews the arbitration and provides an acknowledgment if the details are correct and then provides the final ruling deciding the liable party between the Acquirer and Issuer.