When arbitration is lost in Visa Arbitration Response, this flow is executed to handle any necessary accounting. In the allocation flow, Arbitration Lost accounting is executed to illustrate the movement of funds back to the merchant. If final credit has not been issued, the Process Liabilty flow is executed to disposition the remaining recovery amount. Otherwise, the remaining recovery amount is automatically taken to loss.
Extension: 2nd Operations An additional accounting operation can be configured in this flow. For more details, see 2nd Operations.