A chargeback is the reversal of a sale or transaction. A chargeback is different than a return and occurs when a transaction is disputed by a cardholder. Cardholders may dispute a transaction through their card-issuing bank if they believe the charge was charged in error, service was not received, or the law firm did not have their authorization to charge the transaction. With proper procedures in place, chargebacks can be avoided in your firm.
LawPay recommends adding authorization language to your client engagement letters and maintaining separate card authorizations on file. In the event of a chargeback, attorneys can generally have them reversed by showing this documentation, along with verification that the work was performed for the client. For more tips on preventing chargebacks, see our Chargeback Prevention Guide.