You delivered the full contract. Two weeks after final payment, the bride files a chargeback claiming "services not rendered." Your Stripe balance is suddenly down $6,000. Here is what actually happens.
How chargebacks work
Credit card disputes are governed by Regulation Z under federal law and by Visa, MC, Amex, and Discover rules. The card network sits as a quasi-judge between you (the merchant) and the cardholder.
When a chargeback is filed:
- The card network pulls the funds from your merchant account immediately.
- You have 7–30 days to respond with evidence.
- If you win, funds are returned (minus the chargeback fee, usually $15–25).
- If you lose, funds stay with the cardholder.
What wins chargebacks for vendors
- The signed contract. Scanned, clear, dated, with the cardholder''s signature.
- Delivery evidence. Email thread showing the client acknowledged receipt. Photos of delivered work. Tracking numbers if physical items.
- The client''s own language. Text messages saying "it was beautiful" or "thanks for everything" are extremely persuasive.
- Invoices matching the charges.
- Cancellation / refund policy in the contract, acknowledged by the client.
Vendors who win chargebacks typically submit a 15–25 page evidence packet. Chargeback analysts read quickly. Lead with the signed contract and the client''s own words.
What loses chargebacks
- Thin documentation. "We did the work" without evidence.
- No signed contract (handshake deals almost always lose).
- Refusal to engage with the cardholder''s specific claim.
- "Services rendered" chargebacks where the deliverable is ambiguous.
The "friendly fraud" pattern
This is the industry term for chargebacks where the client did receive the work and is trying to claw back payment. Visa and MC know it happens. Evidence matters. A chargeback with zero client-side complaint before the dispute is filed is a red flag to the analyst — it indicates the client tried to avoid the refund process and went straight to the bank.
If you lose
You can:
- File a second chargeback ("pre-arbitration") with additional evidence. Rarely overturns the decision but sometimes does.
- Sue the client directly for the amount. Chargeback outcomes do not prevent a lawsuit. In Texas Justice Court, this is under $20K and you can represent yourself.
- Send to collections. Check your contract for language allowing collection agency reporting.
Prevention
- Use Stripe or Square, not Zelle — gives you a platform to submit evidence.
- Always sign a contract. No handshakes.
- After delivery, email a "delivery confirmation" asking for written acknowledgment. Even a "received, thanks!" text kills most chargebacks later.
Sources: CFPB — Credit card dispute process, Visa chargeback reason codes, Texas Business and Commerce Code.