# Dispute Resolution Cycle
source: https://developer.mastercard.com/mastercom-extended/documentation/dispute-resolution-cycle/index.md

## Mastercom Extended Dispute Resolution Cycle {#mastercom-extended-dispute-resolution-cycle}

The dispute resolution cycle comprises a series of events. After each event, the issuer or acquirer can choose to close the claim or continue the claim until Mastercard ultimately determines financial responsibility for the dispute.

As part of the dispute resolution cycle:

* Issuers can use the Mastercom Extended API to initiate disputes and first chargebacks, receive representments, manage documentation, generate reports, and manage pre-arbitration, arbitration, pre-compliance, and compliance cases.
* Acquirers can receive chargebacks, create representments, manage documentation, generate reports, and manage pre-arbitration, arbitration, pre-compliance, and compliance cases.

## Initiate a Dispute and First Chargeback {#initiate-a-dispute-and-first-chargeback}

An issuer can initiate a dispute and a first chargeback when the circumstances of the transaction meet the requirements of the chargeback reason code. Refer to the [Chargeback Guide](https://trc-techresource.mastercard.com/r/bundle/m_cbg_en-us/page/d/en-US/) in the Technical Resource Center on Mastercard Connect.

A chargeback results in a financial adjustment from the acquirer to the issuer. The chargeback can be for the total transaction amount or a lesser amount. Additionally, one clearing transaction can have multiple chargebacks for partial amounts, but the total amount charged back must not exceed the total transaction amount.

After receiving a first chargeback, an acquirer can choose to acknowledge the first chargeback and close the claim or proceed with the second presentment.

## Representment {#representment}

An acquirer can create a representment (second presentment) when the acquirer either (a) believes the issuer's chargeback did not fulfill the requirements of the chargeback reason code or (b) can provide information that addresses the original reason for the dispute.

A representment results in a financial adjustment from the issuer to the acquirer. A representment must be for the total chargeback amount or a lesser amount.

After receiving a representment, an issuer can choose to acknowledge the second representment and close the claim or proceed with the case filing.

## Pre-Arbitration and Arbitration Case Filing {#pre-arbitration-and-arbitration-case-filing}

An issuer can continue a dispute after completion of chargeback cycles using the pre-arbitration and arbitration case filing process. During the arbitration case, the final event in the dispute resolution cycle, Mastercard will determine responsibility for the dispute.

A case filing must be for the total representment amount or a lesser amount.

## Pre-compliance and Compliance Case Filing {#pre-compliance-and-compliance-case-filing}

A compliance case can be filed at any point during the dispute resolution cycle by either an issuer or an acquirer when specific compliance program requirements are met, such as:

* A Message Reason Code does not exist to address the dispute.
* A rule has been violated.
* A financial loss has been documented as a direct result of the rule violation.

## Next steps {#next-steps}

Review [Use Cases](https://developer.mastercard.com/mastercom-extended/documentation/use_cases/index.md), [API Reference](https://developer.mastercard.com/mastercom-extended/documentation/api-reference/index.md), and [API Basics](https://developer.mastercard.com/mastercom-extended/documentation/api-basics/index.md) for more detailed information.