My previous client is threatening to chargeback all the payments. What are my options?
My previous client is threatening to charge back all the payments. What are my options?
Hello there. We have been going through some tough times recently. My previous client paid all the invoiced through a credit card (which goes back to March 2022).
The credit card payments came through stripe.
It has been challenging ( and mentally stressful ) working with them. We recently delivered all the source code and server access and let go of a good chunk of the predecided payment. Since they
have access to everything, they now want a refund for the work that has been delivered. All the payments we received were based on milestones after they verified them. More work has been accomplished, but we have let go of that payment.
Now my question to you guys is:
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Can they get back these payments using chargeback, and how easy would it be for them to do it? The last payment was a month ago.
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What are our options here? Yes we can prove all the work. There had been constant communication with them.
Indie hackers selling to indie hackers?
Talk to a lawyer.
Exactly. If you can prove they agreed to pay you for work, and you delivered that work, get a lawyer right now.
Thank you for your reply.
If you are choosing to fight a chargeback, you must submit a rebuttal letter and supporting evidence to prove the chargeback is invalid. The issuing bank will then evaluate this evidence and decide whether to reverse or uphold the chargeback. If the bank decides against you, you can appeal through arbitration.
But you'd better partner with a reliable payment provider. At PayPro Global, the risk team thoroughly evaluate such orders while the order management team handles all the chargeback cases and disputes.
Hopefully it's not too much, as chargebacks can be tough - banks usually side with the client regardless of the documents you provide
Have a look at the rules around Chargebacks here.
@92watkins Thank you for your reply. I was really depressed but your response gave me hope.
Maybe try something like letterdash.com before bringing on a lawyer? Often just the threat of legal action is enough to do the trick.
For the future, it's good to be sure you have documented "acceptance" of each milestone. I know you said "All the payments we received were based on milestones after they verified them." -- it's possible to say that this constitutes acceptance, but it's even better if you have a very clear audit trail of the client actually "accepting" the work.
Also, in the future... remember that it's ok to fire a client :) - usually the earlier the better.
Thank you for your reply. Didn't know about letterdash.
Oh, what a bummer :( I can not give advice other than to say stay strong, whatever happens...
Maybe a lesson learned for all the agencies/contractors/freelancers? Never accept credit card payments, only direct deposits to the bank account?
Thank you for your reply. Yeah, don't accept credit cards for sure.
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