This article provides information about what happens when a client disputes a charge from your firm on their card and provides information on your next steps. For an in-depth guide to minimising the risk of a client disputing a transaction from your firm, understanding what a chargeback is, and how to contest chargebacks, refer to our guide on Everything Law Firms Need to Know About Chargebacks and ACH Disputes.
When a client disputes a credit card or eCheck payment, Clio is required by card network rules to return the disputed funds to your client’s bank account the moment we are notified. This is called a chargeback. All administrators and the firm’s primary subscriber are notified by email that a chargeback occurred and adjustments automatically happen in Clio Manage to reflect this event. This means that the payment is removed from the bill in Clio Manage which moves the bill back to an unpaid state.
The email notification you received will provide details about the chargeback and how to respond. For assistance, email Clio’s Chargebacks Team at chargebacks@clio.com.
Chargeback fee
In addition to the disputed amount, a chargeback fee will be deducted from your operating account. To ensure you remain compliant with client fund account rules, this fee will never be deducted from a client fund account, even if the initial transaction was a client fund payment. Clio cannot prevent this fee, as the funds are debited by the issuing bank and the fee paid to the card network. The fee amount is £12 GBP for the UK and €14 EUR for countries of the European Economic Area. Regardless of the outcome of the dispute, this fee will not be returned to the firm.
Respond to a dispute
Note: The time to respond to a chargeback varies by the type (reason) of dispute and the card network. The email that notified you that a dispute was initiated will provide the reason for the dispute and the deadline for your response. The date of the deadline cannot be extended under any circumstance, and missing the deadline will result in the chargeback being resolved in favour of the cardholder.
Challenge the dispute
If you plan to challenge the dispute, you will need to gather documentation in support of your case.
Note: You will be required to submit all documents at once, so gather all required documents before responding to a dispute.
Adhere to the following general requirements when preparing your supporting documents for upload.
- File size: An individual file size cannot exceed 1 MB. In combination, all of your uploads cannot exceed 4.5 MB.
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File format: Files must be in PDF format, although screenshots can be submitted as .jpg files.
- You should not combine individual PDF files into a PDF portfolio. Also, make sure your PDF files are not password protected to ensure it is accessible.
- You cannot submit video or audio files, zip files, or links to documentation (e.g. a link to a Google Drive folder or Dropbox).
- Number of pages: For disputes on a MasterCard, you can submit up to 19 pages. For all other cards you can submit up to 50 pages. If screenshots are included, each screenshot is considered one page.
- Language: All documents must be in English.
You will need different supporting documents for different dispute reasons. The table below provides details about the type of documents to submit for each reason.
Fraudulent
The cardholder alleges they did not authorize the transaction, indicating possible identity theft or unauthorised access. Submit the following:
- Retainer agreement: Signed agreement outlining services.
- Authorisation records: Email confirmation from the client approving the charge.
- Transaction data: IP address logs and location data from the transaction (Clio’s Chargeback Team can provide this information).
- Service proof: Correspondence detailing the services provided, such as case updates or meeting notes.
Services/Product not received
The cardholder claims they did not receive the services they paid for. Submit the following:
- Detailed invoice: Itemised invoice showing services rendered, including dates and descriptions.
- Correspondence: Emails confirming service delivery (e.g. confirmation of meetings, court appearances).
- Milestone confirmation: Documentation of achieved milestones, such as filed motions or submitted documents.
Services/Product unacceptable
The cardholder claims that the service was not as expected or as agreed upon with the firm. Submit the following:
- Document copies: Detailed retainer agreement specifying the scope of services.
- Client communications: Email threads discussing service expectations and deliverables, as well as emails or other communications from the client communicating with your firm about their issues with services provided (if available).
- Feedback and reviews: Client feedback forms or surveys indicating satisfaction or dissatisfaction.
- Amendment evidence: Records of revisions made based on client feedback.
Cancelled recurring transaction / subscription cancelled
The cardholder claims they cancelled a recurring payment but were still charged. Submit the following:
- Terms and conditions: Document outlining cancellation policies associated with the service.
- Payment history: Detailed records of all payments made, highlighting the charges leading up to the cancellation.
- Justification for continued charges: Evidence that a service was provided prior to the recurring transaction or other justification for not cancelling the recurring payments.
Duplicate charge
The cardholder states they were charged twice for the same service. Submit the following:
- Invoice records: Copies of invoices showing both charges, including timestamps and amounts, and that they were for separate services/expenses.
- Communication logs: Email exchanges with the client addressing the supposed duplicate charge and clarifying any misunderstandings.
- Refund records: If a duplicate charge did occur and a refund was already processed, evidence of the refund for the duplicate charge, including confirmation emails.
Credit not processed
The cardholder claims they were promised a refund but did not receive it. Submit the following:
- Refund documentation: Copies of refund transactions, including the date and amount refunded, or emails or letters sent to the client confirming the refund process and expected timeline (if a refund or partial refund was processed).
- Transaction history: Detailed transaction logs showing the original charge alongside the refunded amount (if a refund or partial refund was processed).
- Refund policy: A cancellation or refund policy provided to the cardholder prior to payment and an explanation of why they are not entitled to a refund.
Processing errors
The cardholder encountered problems during payment processing or service access. Submit the following:
- Error logs: Screenshots of error messages encountered during the payment process or service access.
- Communication records: Documentation of client communications regarding the issues faced and any troubleshooting steps taken.
- Support documentation: Records of technical support provided to the client, including timestamps and resolution notes.
Once you’ve gathered all required documentation, you’re ready to challenge the dispute.
- From your notification email, click Respond to dispute or Respond to Inquiry.
- On the next page click Challenge Dispute.
- Upload all gathered documents.
Note: Once you submit, you will not have the opportunity to add more documentation, so make sure you upload all required documents. If necessary, combine documents into a single PDF to ensure all evidence is submitted.
- Click Submit Evidence.
After you submit your evidence it will be sent to the issuing bank for review, which can take up to 75 days for a ruling to be determined. When a dispute is settled in your favour, the amount for the transaction that was withdrawn from your account when the dispute was initiated will be returned to your account. When a dispute is settled in the client’s favour the disputed amount is forfeit.
Accept the dispute
Accepting a dispute means the case is marked as Lost, and the disputed funds will be returned to the cardholder.
- From your notification email, click Respond to dispute or Respond to Inquiry.
- On the next page click Accept Dispute.
View bill and payment statuses
You can view whether a payment has been disputed, whether there was a chargeback, and whether you won or lost a dispute in Clio Manage.
- Go to Online payments.
- Optional: Click Filters to narrow your results by client.
- Look for the relevant tags under the Status column.
- A red Disputed tag indicates that the payment has been disputed. A disputed payment will always have this status, regardless of whether the dispute is an inquiry or chargeback and whether the dispute is won or lost.
- A red Chargeback tag indicates that the payment has been disputed and a chargeback occurred (funds have been taken from your firm).
- A blue Dispute Won tag indicates that for disputes involving a chargeback, the case was resolved in your favour and the funds have been returned to your firm.