Push Back on Chargeback Fraud
As your chargeback lawyers, we will help you fight chargebacks by sending a demand letter to your client to get you paid back.
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Meet Our Attorneys
Nicole Lefton
Nicole is a New York attorney at JusticeDirect Law Firm DC LLP. She was previously an adjunct professor at American University and George Mason University.
Patrick Forrest
Patrick is an Arizona and Washington, D.C. attorney at JusticeDirect Law Firm DC LLP. He has previously worked as a JAG officer in the US Army and for the Department of Homeland Security.
Camila Lopez
Camila is a California attorney at JusticeDirect Law Firm DC LLP, consumer advocate, and mediator. She has helped thousands of individuals and small businesses with California small claims cases.
FAQs: Attorney Demand Letter
Once you’ve signed our Engagement Agreement and provided all the necessary information, your attorney will send you a first draft of your letter within 3–5 business days.
Once you approve the final draft and your attorney signs the letter, the letter will be mailed via USPS Certified Mail. We’ll email you the tracking number and notify you once your letter is delivered.
Yes. You’ll be able to review and approve the letter before it’s mailed, and you can request one round of edits if needed. We won’t send the letter without your confirmation.
Yes. As part of our service, you may request one round of edits if needed.
While we can prepare a letter for most requests, each case is different, and your attorney must review your situation before agreeing to draft your letter.
There are two situations where we may not be able to proceed:
No legal basis for a letter: If, after reviewing your case, we determine that the law does not provide a remedy, we’ll explain our reasoning and share our research with you. In this case, you’ll receive a 25% refund of the fees you paid.
Specialized legal expertise required: If your case requires a lawyer with specialized expertise outside our scope, we’ll let you know and issue a full refund.
Our goal is always to provide helpful guidance, even if we’re not able to write the letter.
No. All communication with your attorney is handled in writing to allow time for careful review of your documents, legal research, and thoughtful, detailed responses. Written communication also gives you a clear record you can refer back to at any time.
Yes, as long as you haven’t approved your letter for mailing. If you cancel before any work has started, you’ll receive a full refund. If work has already begun on your case, we’ll issue a 25% refund.
We can’t guarantee you’ll receive a response to your demand letter. If your dispute isn’t resolved, you may consider taking further legal action. We offer help with starting a small claims case in California and New York Learn more about our small claims service. If you are outside of those states and would like to start a small claims case, review our 50-state Guide to Small Claims Court.
We understand it can be frustrating not to receive a response. However, because we can’t guarantee the outcome of your letter, we’re unable to offer refunds if no response is received.
We don’t communicate or negotiate with the other party party. Your attorney’s role is to preparing and send your letter. This is known as a “limited-scope representation.”
Yes, if you live outside the US, we can assist you with sending a demand letter to an individual or business in the US.
Pricing
Attorney Demand Letter
$300
Written and Signed by Your Attorney
Attorney Written and Signed
Mailed on our Law Firm Letterhead
We ship for you via USPS Certified or Priority Mail
Tracking & Delivery Notifications
Free Replacement Shipping if Delayed
Meet Court Requirements*
This is an attorney service.
*Some courts require you to send a demand letter before filing a small claims lawsuit.
What to Do If You Lose a Chargeback
If you lose a chargeback and believe the customer acted unfairly or fraudulently, you may still have legal options to recover your money.
Send a Demand Letter
A demand letter is a formal notice requesting payment. It outlines what happened, how much is owed, and a deadline for the customer to respond. A letter from an attorney can carry more weight and may prompt the customer to settle without further legal action. It’s often a low-cost first step before going to court.
Sue in Small Claims Court
If the customer ignores your demand letter or refuses to pay, you can file a lawsuit in small claims court. This is a simplified legal process designed for individuals and small businesses to resolve disputes without needing a lawyer. Each state has a maximum dollar limit ranging from $2,500 to $10,000, and you’ll need evidence showing the customer’s chargeback was unjustified.
These legal options can be effective ways to recover chargeback losses when the payment system fails to protect your business.
We assist with demand letters and small claims court.
What is a Chargeback?
A chargeback happens when a customer asks their bank to cancel a payment instead of asking the business for a refund. Chargebacks are meant to protect people from fraud, but they are sometimes misused, leaving business owners to lose money from real sales.
If you’ve received a chargeback that seems unfair or dishonest, a demand letter from an attorney could help recover your money.
What is Chargeback Fraud?
Chargeback fraud occurs when a customer misuses the chargeback process to get a refund on a valid purchase. This may include claiming a product wasn’t delivered when it was, or saying a charge was unauthorized even though they made the purchase themselves.
This type of fraud is common in both e-commerce and service-based businesses. It puts merchants at a disadvantage, funds are pulled before the business can respond, and the burden of proof falls entirely on the seller. In some cases, chargeback fraud is repeated by the same customers, costing businesses thousands.
What Is Friendly Fraud and How Is It Different?
Unlike chargeback fraud, which is intentional, friendly fraud happens when a customer files a chargeback by mistake. This might be because they forgot about a purchase, didn’t recognize your business name on their statement, or misunderstood a family member’s charge.
Even though it’s not meant to cause harm, friendly fraud still leads to lost revenue, chargeback fees, and higher risk for your merchant account.
What Evidence Helps You Challenge a Chargeback in Small Claims Court?
To be able to assist you with sending a demand letter (or helping you sue in small claims court) regarding a lost chargeback, here is some evidence we will need to see:
Tracking numbers and delivery confirmations
Customer communications (email, chat, etc.)
Order receipts, invoices, or service agreements
Evidence that you delivered the product or service.
How Chargebacks Hurt Businesses
Chargebacks hurt businesses in more ways than one. Even when the dispute is resolved in your favor, you’re still responsible for chargeback fees, and your chargeback ratio increases.
The ratio (chargebacks/total transactions) is tracked by banks and card networks. If it gets too high, it can lead to:
Higher processing fees
Frozen funds
Possible termination of your merchant account
Every chargeback adds risk to your business.
What is a Chargeback Fee?
Most payment processors add a chargeback handling fee, which can range anywhere from $20 to $50+ per dispute, even if the business wins. The fee is set by the bank or processor to cover their cost of handling and reviewing the dispute.
Different providers have different rules, so it’s important to check your processor’s fee schedule.
How Long Does a Customer Have to File a Chargeback?
While the exact time limit varies by card issuer, most credit card companies allow customers to file a chargeback within 120 days of the transaction date. Under U.S. law, cardholders must be given at least 60 days to report a dispute.
That means businesses can still face chargebacks months after providing a product or service, making long-term record keeping essential.
How Long Do I Have to Fight a Chargeback?
Every payment processor and card issuer sets their own deadlines, but most businesses have 20 to 45 days from the date they’re notified to dispute a chargeback.
If the deadline is missed, the customer automatically wins the dispute, regardless of the facts.
Once the dispute is submitted, the full process can last up to 120 days or longer, depending on the complexity of the case and the responsiveness of both parties.