This guide walks you through the arbitration lifecycle and resolution flow.

Arbitration serves as the final, legally binding stage of a dispute resolution process, occurring only when the initiating and receiving parties fail to reach an agreement during preliminary cycles. In this phase, the case is escalated to an independent governing body or committee that conducts a definitive review of all submitted evidence to determine liability. Because this stage often carries significant administrative fees and its ruling cannot be appealed, it acts as a "court of last resort" to ensure a conclusive end to the dispute lifecycle.

Arbitration is part of the extended dispute lifecycle, defined here.

Arbitration Lifecycle

Status Definitions

Understanding arbitration states helps you track progress and know what actions are available:

Supported Payment Methods

The following payment methods utilise arbitration:

• Wero

Arbitration Resolution Flow

1. Receive arbitration notification

When a dispute is escalated to arbitration against a merchant account, an ARBITRATION_OPEN webhook notification is sent to the registered endpoint.

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2. Retrieve arbitration details

Retrieve detailed information about the dispute, including the reason, status, any files and messages, as well as allowedActions and allowedCapabilities. Full list of reason codes can be accessed here.

API endpoint: GET /v1/disputes/{disputeId}

When to use:

• Immediately after receiving ARBITRATION_OPEN webhook
• To check current status of in-progress disputes

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3. Download files (when available)

Download any documentation or evidence submitted by the consumer/ consumer bank.

API endpoint: GET /v1/disputes/{disputeId}/files/{fileId}

The response provides:

• A time-limited download URL for secure file access
• File metadata (name, type, size)

When to use:

• After retrieving arbitration details (if files are attached)

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4. Add messages (when allowed)

Communicate directly with the arbitration committee during the arbitration resolution process by posting messages. To check if messages can be added as well as the maximum characters allowed, see allowedCapabilitiesin the dispute details API response body.

API endpoint: POST /v1/disputes/{disputeId}/messages

When to use:

• When communicating directly with the arbitration committee, when for instance additional information is requested or clarification is required

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Important: This endpoint is available only when the payment provider supports direct messaging and it is supported in the respective phase. See each supported payment provider's page for the exact settings, such as whether messaging is supported. You will receive a webhook notification every time a new message is posted.

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5. Upload supporting files (when allowed)

During communication with the arbitration committee, upload additional documentation to support a case or to answer questions. Multiple files can be uploaded. To check if files can be uploaded as well as the accepted formats and file size limitations, see allowedCapabilities in the dispute details API response body.

API endpoint: POST /v1/disputes/{disputeId}/files

When to use:

• During communication with the arbitration committee

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Important: The file upload endpoint is used for sending files as part of the messaging feature and when challenging a dispute. If, for example, messaging is supported by the provider, you use the file upload endpoint to attach files to your messages. If messaging is not supported, you use the file upload endpoint to upload your evidence before you challenge.

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Important: Files uploaded may be immediately visible to the provider or consumer. See each supported payment provider's page for more information.

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6. Accept or challenge

Submit the final decision on how to handle the dispute.

API endpoint: POST /v1/disputes/{disputeId}/actions

ACCEPT

• Agreement with the consumer bank
• The disputed amount is returned to the consumer
• Dispute is closed (status: LOST)
• No evidence submission required

CHALLENGE

• The dispute is contested with evidence
• Previously uploaded evidence is submitted to the arbitration committee
• Arbitration committee reviews and reaches a decision
• May result in WON (merchant keeps funds) or LOST (funds returned to consumer)

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Important: A response is required before the deadline (see the action's dueBy date) otherwise the dispute will be closed by the provider with status: LOST

Actions cannot be reversed once submitted

7. Track dispute resolution

Webhook events:

• ARBITRATION_ACCEPT_PROCESSING
• ARBITRATION_CHALLENGE_PROCESSING
• ARBITRATION_UNDER_REVIEW
• ARBITRATION_UPDATED
• ARBITRATION_WON
• ARBITRATION_LOST

Possible final outcomes: