Pre-arbitration is not a standard part of dealing with chargebacks, but rather a distinct procedure typically only applicable to Visa cards.  Centered on a second chargeback or second reversal of a disputed transaction, pre-arbitration is a formal procedure to clarify whose claim has standing.

Pre-arbitration can be one of the most confusing steps in the chargeback process, not least because Visa is the only card network that uses this particular terminology.

Chargeback Meaning
A chargeback is a transaction reversal process initiated when a consumer requests a forced-refund from their issuing bank.

Pre-arbitration refers to the part of the process when the issuer, or their customer, disputes the merchant’s representment and sends the case to the card network for a final decision in arbitration. Only Visa calls this “pre-arbitration” in their official documentation, but it’s common shorthand in the payments industry for the formal procedure to clarify whose claim has standing on the second reversal of a disputed transaction.

Full Text:
https://www.chargebackgurus.com/blog/understanding-the-chargeback-pre-arbitration-process

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