Arbitration fee

An arbitration fee is a substantial cost charged by card networks when a chargeback dispute escalates to the final arbitration stage, where the network makes a binding decision on the dispute outcome. 

Arbitration fees typically range from $500 to $1,000 or more, depending on the card network, dispute amount, and transaction circumstances. The losing party pays the arbitration fee plus the disputed amount, making arbitration a high-stakes decision. 

Due to high costs and the finality of arbitration rulings, most merchants and issuers settle disputes before reaching this stage. Merchants should only pursue arbitration when they have compelling evidence, and the dispute amount justifies the financial risk.