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

Pre-arbitration is a secondary challenge phase occurring when a merchant has successfully challenged a dispute, but the consumer’s financial institution continues the contest by rejecting the merchant's evidence or providing new information. It acts as a final checkpoint for both parties to settle the matter before escalating to a formal, costly judgment by the payment provider in the arbitration phase.

Pre-arbitration is part of the extended dispute lifecycle, defined here.

Pre-Arbitration Lifecycle

Status Definitions

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

Supported Payment Methods

The following payment methods utilise pre-arbitration:

• Wero

Pre-Arbitration Resolution Flow

1. Receive pre-arbitration notification

When a dispute is escalated to pre-arbitration against a merchant account, a PRE_ARBITRATION_OPEN webhook notification is sent to the registered endpoint.

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2. Retrieve pre-arbitration details

Retrieve detailed information about the dispute, including the reason, status, any new 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 PRE_ARBITRATION_OPEN webhook
• To check current status of in-progress disputes

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3. Download consumer 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 pre-arbitration details (if files are attached)
• To review consumer/ consumer bank submitted evidence before preparing a response

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4. Add messages (when allowed)

Communicate directly with the consumer bank during the pre-arbitration resolution process by posting messages. To check if messages can be added as well as the maximum characters allowed, see allowedCapabilities.

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

When to use:

• Direct communication with the consumer bank to resolve disputes amicably
• Negotiating a resolution before challenging/ accepting

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Important: This endpoint is available only when the payment provider supports direct communication between merchants and consumers/ consumer banks. 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 consumer bank, upload 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.

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

When to use:

• During communication with the consumer bank

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Important: Files uploaded are immediately visible to the consumer bank

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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 consumer bank
• Consumer bank 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

CHALLENGE may require evidence upload (Step 5) before submission

Actions cannot be reversed once submitted

Refunds are not automatically processed when accepting, they must be separately initiated

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7. Track dispute resolution

Webhook events:

• PRE_ARBITRATION_ACCEPT_PROCESSING
• PRE_ARBITRATION_CHALLENGE_PROCESSING
• PRE_ARBITRATION_UNDER_REVIEW
• PRE_ARBITRATION_WON
• PRE_ARBITRATION_LOST

Possible final outcomes: