Second chargeback
Second chargeback occurs when the issuing bank rejects a merchant's representment evidence and reinstates the chargeback, indicating the issuer still believes the cardholder's claim is valid despite the merchant's defense. Also known as pre-arbitration (Visa terminology) or second presentment (in some contexts), this represents the issuer's response to the merchant's initial dispute.
Common causes:
- Merchant's evidence deemed insufficient
- Cardholder provides contradictory information or additional proof
- Documentation doesn't adequately address the dispute reason
Merchant options:
- Accept the chargeback - Take the loss and move on
- Escalate to arbitration - Request final card network adjudication
Merchants must carefully evaluate whether potential recovery outweighs arbitration costs (typically $500+) and the risk of losing and paying additional fees. Arbitration decisions are final and binding. Many merchants accept second chargebacks rather than risk higher losses through arbitration, especially for low-value disputes.