64. How Law Firms Can Dispute (and win) Chargebacks

Chargebacks are the credit card world’s version of a courtroom dispute, and for many law firms, they can be a frustrating and costly surprise. In this episode of Financially Legal, we break down the chargeback process, why it’s uniquely tricky for law firms, and what you can do to protect your revenue.

Why Are Chargebacks So Common in Legal Services?

The most common type of chargeback? A client calls their bank and says they didn’t receive the services they paid for. It’s a little like disputing a charge after a disappointing dinner but often with much higher stakes.

And here’s the kicker: some clients initiate chargebacks instead of asking the law firm for a refund. Worse, some clients file chargebacks even after receiving a refund. Given the stakes, it’s important to know the process. 

Understanding the Chargeback Process

Every chargeback follows a predictable flow:

1. Immediate Reversal: The client is credited, and your firm is debited, regardless of who is at fault. If you’ve already issued a refund, you could end up paying twice.
2. Review & Decision Time: Once notified, it’s your chance to respond. But before diving in, assess whether the dispute is worth fighting based on the payment amount and service history.
3. Compile Your Case: Think of a chargeback like a mini-litigation. You need a clean, compelling response that proves the services were delivered as agreed.

How to Respond: Think Like a Lawyer

Amos suggests that law firms should “approach a chargeback like a legal case.” That means:

• Submit a summary letter on firm letterhead explaining why you’re entitled to keep the payment.
• Include a signed services agreement, relevant invoices, and evidence of completed work.
• Be concise. Reviewers may not understand law firm operations, and a bloated paper trail can hurt your case.
• Avoid confidentiality missteps. Don’t overshare client information, especially if the case could end up in arbitration.

Technical details matter too: always include the case number, date of payment, last four digits of the card, brand, and a receipt. To see a complete list of items you should submit, download Confido Legal’s Chargeback Checklist for law firms.

Lessons from the Field

Confido Legal worked with a law firm that helped tenants fight evictions. Many of their clients were financially strained, and chargebacks were a common occurrence. After reworking their response process and tightening documentation, they now win over 90% of their disputes.

We’ve even helped firms navigate pre-arbitration, a next-level appeal process many fear because of the fees, but with the right support, it’s often worth it.

Pro Tips to Avoid Chargeback Pitfalls

• Don’t issue refunds on a different card or payment method. It complicates your ability to win a dispute. (What Happens if a Law Firm Refunds a Credit Card Payment with a Check?)
• Collect signatures from third-party payers before accepting payments.
• Watch for client name mismatches due to a marriage, divorce or other name change event. This seemingly small detail can lose a case.
• And finally, don’t fear chargebacks. The system is skewed in the client’s favor, but law firms are uniquely well-positioned to defend themselves if they respond thoughtfully and thoroughly.
  

Going Further

If you’re seeing more chargebacks than you’d like or want to learn more about chargebacks, Confido Legal can help. We’ve worked with firms across practice areas to dramatically improve win rates and reduce payment friction.

To learn more or access our Confido Legal Chargeback Checklist, visit https://confidolegal.com/financiallylegal/chargebacks-for-law-firms or connect with us on LinkedIn. And don’t forget to subscribe to Financially Legal for more conversations about the business side of law.