Arbitration is the final stage of a chargeback dispute between you and the guest’s bank. If you and the bank can't reach an agreement during the initial dispute stages, the card network (such as Visa or Mastercard) steps in to make a final, binding decision. This article explains how the process works and how to manage it in GuestyPay.
Managing the arbitration process
Arbitration only occurs if a case remains unresolved after:
First chargeback: When a guest contacts their bank to contest a charge.
Pre-arbitration: When the guest's bank requests more information or challenges your initial response.
The pre-arbitration step doesn’t always take place. A case may be escalated to arbitration directly from an unresolved first chargeback.
Viewing arbitration in GuestyPay
Arbitration appears in your GuestyPay dashboard as a transaction that doesn't debit or credit any funds. This is an informational entry to notify you that the arbitration process has officially started.
For more information about the different transaction types you will see on your GuestyPay dashboard, see GuestyPay transactions and transactions summary reports. To access the dashboard:
Sign in to your Guesty account.
In the top menu, click Financials.
Select GuestyPay from the left-side menu.
Click Transactions to review your current activity and dispute statuses.
Best practices for arbitration
Arbitration is a high-stakes stage. Once the outcome is decided during arbitration, there is no further appeals process for cardholder or merchant. Follow these guidelines to increase your chances of a successful outcome.
Respond quickly
Always take action before the deadline. While you usually have 14–15 days to respond to initial disputes, arbitration deadlines are often much shorter. Late responses result in an automatic loss of the case.
Provide complete documentation
Attach strong evidence to support your position. Use the specific chargeback reason code to tailor your dispute package. Relevant evidence could include:
Guest communication and messaging history
Signed receipts or rental agreements
Clear copies of your cancellation and refund policies
Proof that the service was provided or the guest checked in
Monitor your dashboard regularly
Review your GuestyPay Transactions Summary at least twice a week. Frequent monitoring helps you identify new chargebacks and arbitration updates early, giving you more time to prepare your evidence.