What is the difference between a mediator and an arbitrator?

The difference is fundamental. A mediator is a neutral facilitator with no power to decide the dispute — their role is to help the parties negotiate their own agreement, and any party can decline to settle.

An arbitrator, by contrast, functions much like a private judge: after hearing evidence, the arbitrator issues a decision, called an award, which is generally binding on the parties.

In short, mediation leaves the outcome in the parties' hands, while arbitration places it in the neutral's hands.

Some disputes use both — attempting mediation first, and proceeding to arbitration only if mediation does not resolve the matter.