The invoice was paid. Then your processor sent the email: the client filed a chargeback. The money is clawed back, you owe a dispute fee on top, and the client has gone quiet. This happens more than most contractors expect, and the path back to getting paid is narrower than a normal unpaid invoice. Here is how to write a demand letter that actually works when a chargeback is the reason you are out the money.
What a Chargeback Changes About Your Demand
A chargeback is not the same as a client refusing to pay. The client went to their card issuer, claimed the charge was unauthorized or the work was not delivered, and the bank reversed the transaction. You are no longer chasing an overdue invoice. You are chasing money that was taken back after the fact.
That changes your letter in two ways. First, the debt amount now includes the chargeback fee the processor charged you (typically $15 to $25 per dispute). Second, you have to accuse the client of something specific: filing a fraudulent or improper chargeback on work they accepted. The standard unpaid invoice demand letter template needs adjusting to reflect this.
Fight the Chargeback With the Processor First
Before you send any letter, respond to the chargeback through your payment processor (Stripe, Square, PayPal, etc.). You usually have 7 to 21 days. Submit everything you have:
- The signed contract or estimate showing the agreed scope and price
- The original invoice and the receipt showing the client authorized the charge
- Before-and-after photos with timestamps
- Every text and email where the client acknowledged the work, approved a change order, or thanked you
- A signed completion or sign-off document if you have one
Winning the chargeback at the processor level is faster and cheaper than a demand letter. If you lose it, the demand letter becomes your real tool. Either way, do not skip the processor step: judges and clients alike will ask if you tried.
What to Include in the Demand Letter
Once the chargeback decision goes against you (or the client filed multiple disputes), it is time to write. The letter should make clear you consider the chargeback improper and that the underlying debt is still owed. Cover these elements:
- The original invoice number, date, and amount
- The date the client paid and the date they filed the chargeback
- The reason code the client used (if your processor showed it) and why it is wrong
- The chargeback fee charged by your processor, added to the total owed
- A short summary of the work performed and the client's acknowledgment of it
- A payment deadline of 10 to 14 days
- A clear statement of next steps if the deadline passes
Keep emotion out of it. "The chargeback you filed on October 12 was improper because the work was completed and accepted on September 28" lands harder than "I cannot believe you did this."
Address the Reason Code Directly
Card networks use specific reason codes for chargebacks: "services not rendered," "not as described," "fraudulent transaction," and a few others. Your processor's dashboard will usually show which one the client used. Name it in your letter and refute it with one sentence of evidence.
The chargeback was filed under reason code 4853 ("services not provided"). This is factually incorrect. The work was completed on September 28, 2026, photographed at completion, and signed off by you via text message at 4:47 PM the same day. A copy of that message is attached.
This matters because if you end up in court, the judge wants to see that the client made a specific false claim. A vague "they did a chargeback" carries less weight than "they filed a false 'services not rendered' chargeback after signing off on the completed work."
Reference Small Claims Court and the Fraud Angle
Small claims court handles chargeback-related disputes the same way it handles any unpaid invoice, with filing limits running from $2,500 to $25,000 depending on the state. Name the specific court in your final letter. A reader walking through the small claims filing process with chargeback evidence in hand is in a strong position.
Some states treat a deliberately false chargeback as a form of fraud, which can change what damages the court will award. Do not claim this in your letter as a guarantee. Instead, state that you intend to pursue the matter "including any applicable fees and damages allowed under state law." That is accurate and lets the client (or their lawyer) do their own homework.
How to Send the Letter
Send the first version by email and certified mail with return receipt. The certified receipt is critical: a client who has already gone to their bank to reverse the charge is capable of claiming they never received your letter. The return receipt prevents that.
Keep a folder with the contract, the original invoice, the processor's chargeback notification, your evidence submission, the chargeback decision, the demand letter, and the certified mail receipt. That folder is what you bring to court if it gets that far, and it is also what makes you look prepared in any settlement conversation.
Getting the Letter Written Right
A chargeback demand letter has to do more than a standard one: name the reason code, refute it, add the processor fee, and signal that you understand the difference between an unpaid invoice and a reversed payment. Generic templates miss this. So does writing it at 9pm after a full day of work.
PaperHammer drafts the full three-letter escalation with your invoice details, the chargeback specifics, and your state's small claims limit already worked into the language. You review, edit, and download in under five minutes. Not legal advice, just the document done right.