A chargeback is when a client disputes a credit card charge with their bank — claiming the service wasn't delivered, wasn't as described, or was done without their authorization. The bank temporarily reverses the charge while it investigates.
For contractors, a chargeback is one of the most frustrating payment disputes possible. Unlike a client who refuses to pay (where you can pursue collections or small claims court), a chargeback goes directly to your payment processor. If you lose, the money is gone — and your merchant account may be flagged.
Here's how to prevent chargebacks and win them when they happen.
Why Contractors Get Chargebacks
The most common reasons:
- "I never approved this" — the client claims they didn't authorize the full scope or price
- "The work wasn't completed" — the client claims you didn't finish the job
- "The work wasn't as described" — the client says what was done doesn't match what was agreed to
- "I was charged the wrong amount" — a billing error or scope change dispute
- True fraud — the card was stolen (rare in contractor contexts but possible)
The first four can be defended with documentation. The fifth is genuinely outside your control.
How to Prevent Chargebacks Before They Happen
1. Written estimates with client approval before work starts
The most common chargeback defenses fail because there's no written record of what was agreed to. An estimate that the client approves — digitally or in writing — is your first line of defense.
With TimeFotos, estimates are sent digitally, and client approval is recorded in the system. If the client later claims they didn't authorize the scope, you have a timestamped approval record.
Start creating digital estimates on TimeFotos →
2. Before-and-after photo documentation of every job
A chargeback claiming "work wasn't completed" can only succeed if you can't prove it was. Before-and-after photos with timestamps and GPS, organized by the job address, are your proof of completion.
3. Client share links after the job
When you send a client a professional job summary link — with photos and a job summary — you're creating a documented acknowledgment of completion. A client who opens a job summary link, views the photos, and doesn't immediately raise an issue has implicitly confirmed the work was done.
4. Written change orders for any scope additions
If a job scope changes mid-job — extra work added at the client's request — document it as a change order with the additional cost, and get digital approval before you do the additional work. This closes the "I never approved the extra charge" dispute.
5. Deposit at contract signing, balance on completion
Never collect full payment upfront. A reasonable deposit (10–30%) at contract signing, with balance due on completion, aligns your payment milestones with your documentation milestones.
If a Chargeback Happens: How to Win
When you receive a chargeback notice from your payment processor, you'll have a window (typically 7–30 days) to submit a response with evidence.
Your strongest evidence:
- Signed or digitally approved estimate showing the scope and price
- Before-and-after photos with timestamps and GPS (from TimeFotos)
- Client share link delivery record (proving the client received the job summary)
- Any text messages or emails where the client acknowledged the work
- Change orders with client approval for any additional work
Submit all of this as a single, organized response. Payment processors review thousands of disputes — a clear, well-documented response wins more often than a vague one.
What to Do if You Lose a Chargeback
If the chargeback decision goes against you:
- Review the reason code — the processor provides a reason code explaining why you lost
- Re-evaluate your documentation workflow — what evidence was missing?
- Consider small claims court if the amount justifies it — a chargeback decision is not a civil court finding
The Documentation Standard That Makes Chargebacks Rare
Contractors who get chargebacks rarely have complete documentation. Contractors who document every job — written estimate, photos before and after, change orders in writing, job summary link sent to client — almost never do.
The documentation workflow that prevents chargebacks is also the workflow that wins them when they happen. It's the same practice, applied before the dispute, that determines the outcome after.
The Bottom Line
Chargebacks are prevented by documentation: written estimates, before-and-after photos with timestamps, change orders in writing, and a job summary sent to the client at completion. TimeFotos handles all of this in one workflow.