When arbitration is executed in Mastercard Arbitration, this flow is executed.  Here, the system waits for a response from the acquirer.  While a response is awaited, the Pending Arbitration Response assignment is displayed.  The acquirer has the following options to respond:

• Accept the arbitration case and thereby financial responsibility for the disputed transaction.  The acquirer can accept the arbitration case at any time before Mastercard rules on the case.  When this happens, the system generates an arbitration accounting entry.
• Reject the arbitration case with a rebuttal and any relevant documentation that specifically addresses the information contained in the arbitration case filing within 10 calendar days of the arbitration case escalation date. Mastercard will not consider any information provided in arbitration that was required (but not provided) in second presentment or pre-arbitration.  Once the arbitration case is rejected, the case will then be available for Mastercard review as described in the Mastercard Review Process in the Mastercard Chargeback Guide.  The Mastercom Case Filing Application will allow the acquirer to accept the arbitration case at any time before Mastercard rules on the case.  When a rebuttal is received, a Review Arbitration Response 
• Take no action.  After 10 calendar days, the Mastercom Case Filing Application will automatically reject the arbitration case and the case will then be available for Mastercard review as described in the Mastercard Review Process section later in this chapter.  The Mastercom Case Filing application will allow the acquirer to accept the arbitration case at any time before Mastercard rules on the case.

If no response is recorded by day 15, the system will assume the case was rejected by the acquirer and automatically resume the Arbitration Ruling flow.

If an unsupported response is received, an Arbitration Response Failed assignment is generated and prompts a user to review the details and record a supported response.

When any of these responses are received, a recovery action is recorded in Recovery Action History.

The issuer may Withdraw the arbitration case at any time before a ruling is received by selecting Other Actions > Withdraw.  Executing this action assumes liability for any remaining recovery amount and renders the case closed.

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