Although arbitration is supposed to be inexpensive, that's not always the case. You will also pay an hourly fee for the arbitrator. Fees can quickly exceed the amount of a small credit card claim. At other firms, filing fees vary according to the amount of the claim. And you may get hit with other charges, depending on the complexity of your case.
Many firms now offer low-cost arbitration for small claims.
There is no in-person hearing. Instead, the arbitrator decides the case based on documents submitted by each side. That may be fine for a simple case. But in other cases, a hearing may help. Lovenheim cites a case of a music student who was injured in an auto accident.