Chargeback Flow and Key Parties

Stage	SLA	Key Parties Involved	Description
Initiation	Up to 120 days from the transaction date	Cardholder → Issuer	Cardholder disputes a transaction with their issuing bank
Chargeback	Up to 120 days from the transaction date	Issuer → Card Network → Acquirer → Pivot → Merchant	Issuer files a chargeback through the card network. Funds are debited from the Merchant
Representment	Up to 30 days from the Chargeback notice	Merchant → Pivot → Acquirer → Card Network → Issuer	Merchant decision: Accept the chargeback (Merchant takes financial responsibility) or Reject the chargeback and return with the supporting document If the merchant chooses to reject the chargeback, the issuer will review the evidence, resulting in: Accept the represenment (Cardholder takes financial responsibility) Reject the representment, and return with the supporting document
Pre-arbitration (*optional)	Up to 30 days from the first representment	Issuer → Card Network → Acquirer → Pivot → Merchant	Merchant decision: Accept the Pre-arbitration (Merchant takes financial responsibility) or Take no action, Merchant takes financial responsibility Reject the Pre-arbitration and return with the rebuttal containing relevant details of the Pre-arbitration case filing If the merchant chooses to reject the Pre-arbitration, the issuer will review the evidence, resulting in: Accept the Pre-arbitration (Cardholder takes financial responsibility) Reject the Pre-arbitration and escalate to arbitration
Arbitration	10–60 days (varies)	Card Network	If no resolution is reached, the card network makes a final binding decision. High fees apply

Roles of Key Parties:

• Cardholder: Initiates a dispute due to dissatisfaction, fraud, or an unrecognized transaction

• Issuer: Investigates the dispute and decides whether to proceed with a chargeback

• Card Network: Mediates the process, sets rules, and resolves arbitration cases

• Acquirer: Passes information between the merchant and the card network

• Pivot: Assists the merchant in managing dispute responses and collecting evidence

• Merchant: Responds with evidence (in representment); may accept or challenge the dispute