“They Paid—Then Asked for the Money Back”: When Businesses Face Post-Payment Disputes

By Jesse David Eisenberg, Esq. | JDE Law Firm, PLLC

It’s one of the most frustrating calls a business owner can get:

“We’re going to need that money back.”

But you already delivered the service. Shipped the product. Hired the labor. Paid the tax. The money wasn’t a gift — it was the deal.

So how is the other side suddenly demanding a refund, filing a chargeback, or threatening legal action to claw the funds back?

The Rise of Post-Payment Risk

In today’s market, more clients, customers, and counterparties are weaponizing refund demands — especially in high-dollar B2B transactions.

Common scenarios include:

• 💳 Credit card chargebacks or ACH reversals after payment clears
• 📑 Claims that services were “incomplete” or “substandard”
• 🧾 Disputes over scope, timing, or deliverables — long after work is done
• 📤 “Voluntary” payments later recharacterized as mistakes or coerced

The law treats these cases seriously — but not always fairly.

What the Law Actually Looks At

Whether you keep the money or return it often depends on:

• Clear contract terms: Was it a fixed fee, a deposit, a milestone?
• Proof of performance: Did you document delivery and acceptance?
• Timing: Did they raise concerns immediately — or only after using your work?
• Equity and intent: Was the payment truly disputed, or are they using leverage to avoid paying twice?

“I Paid You, But I Changed My Mind” Is Not a Legal Strategy

You don’t get to rescind a deal just because you’re unhappy with the outcome — not in business, and not in court. But that doesn’t stop bad actors from trying.

If your business is facing a clawback, chargeback, or demand for refund, you need to respond strategically and fast.

What You Can Do Right Now

If you’ve been paid — and are now under pressure to return the money — do this:

1. 📂 Pull your contract and proof of delivery
2. 🧾 Get a full record of communications and payment history
3. ⚖️ Talk to a litigation attorney before you respond, refund, or threaten back

Courts favor businesses that look proactive, not panicked.

Protect the Payment. Protect the Deal.

📞 If your client, customer, or partner is trying to undo what they agreed to — let’s make sure your business doesn’t lose twice:
www.jdelaw.nyc | NY: 718-966-0877 | NJ: 732-490-7120

My business is to protect your business.