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How do you handle situations like this?

We just had a client that had a site designed, they approved everything, no changes, pics were perfect, verbiage was spot-on, contact info, emails, everything was 110% how they wanted it, no issues whatsoever with the site design.

A month later we get a chargeback on their credit card transactions for both the deposit & final payment...

They have also changed their FTP information so no way for us to actually get into their server to remove the work they havent paid for.

Would a DMCA notice to their host work in a situation like this?

We used "Square" to process the transaction and they have pretty much told us because it was a chargeback, the credit card company wont budge on it.

Do we just write this $2000 off or is there a course of action we should be taking, honestly never had any chargebacks in almost 8 years before (other than Paypal disputes which we typically always win because its for design work).

So thoughts, suggestions, had any dealings with issues similar to this?

Thanks.

AdultEUhost

Did you have a contract? If yes get a lawyer/collection agency if you think it is worth it

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Dragnet

Name the company, contacts and web site so no one else has to go through that shit.

If you had a contract with them - small claims is your only shot to getting paid. If you didn't then you're probably screwed.

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JimmyStephans

Much would depend on the wording of the contract - if any.

1- Screen cap that they are using the design now and continue to do that every few days so they have no argument that the design was bad.

2- Confirm the reason they put down for the chargeback. If they used a stolen card it makes a difference. If the put down something like "never ordered anything from such and such company" that is fraud.

3- It it has been less than 90 days since you delivered the final files I would register the design / artwork at the copyright office for $35.00. It doesn't matter if contract says they get copyright because by not paying they breached that contract and have no standing.

4- Sue, Federal Court, Copyright Infringement, Breach of Contract, and if they lied to credit card issuing bank about reason for chargeback, fraud.

Now, what will really happen is a lawyer will write them a letter about this plan and they will try to settle. Then, if they don't you sue.

Important to get copyright filed within 90 days of site first being used / finished ("published")

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Major (Tom)

it's your copywritten work. Sue for damages
ds

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bean-aid

you have every right to dispute the chargeback. Tell square to give you contact info of the bank. Then fax them your side and tell them the reason for delayed response was square. It is your right to dispute a chargeback.

They can respond only twice but I would think after you respond the first time the chargeback will be decided in your favor.

gimme-website

Im inclined to say you wont see your money, But $2k is a lot of man hours. Id be spitting nails if this happened to me.

I would name/shame.. and then re-package/resell their work.
SOrry i meant YOUR work..You still own it.

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revisionlegal

The answer depends on the contract. If the contract contains a conditional release of intellectual property rights, a DMCA takedown may work. When you say that the credit card company will not budge on the chargeback, what do you mean? There should be a dispute resolution policy that allows you to submit evidence in support of the charge. Be warned, however, credit card companies favor the card holder and the dispute resolution process can take up to 6 months. You may want to try a threat letter/DMCA hybrid approach. If you want help in collections, or have any questions, PM me.

pstation

You won't win the chargeback, banks don't care about keeping merchants happy. Just sue in court

suesheboy

What does your client say?

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She isnt returning phone calls or responding to emails.

SmutHammer

Blast their name on the boards, and sue in court.

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So after sending out a DMCA notice they contacted us this morning about making good on their payment, with an additional 'administrative cost' attached they already wired $2250 to our account.

Who says the DMCA stuff doesn't work for businesses?

VGeorgie

Contract terms are nullified because there is no consideration to bind the parties. The copyright angle seemed to work, as it looks settled. But it was a serious mistake for the client to have paid and charged back, making it fraud, same as writing a bad check. The OP could have involved their state attorney general in the dispute and sought treble damages.