Disputes Without Lawyers
Handling unhappy customers, refunds and chargebacks calmly and cheaply.
Notes from Randall Harper. Thirty years working alongside owner-operators, executives and boards — companies of all types and sizes — across entertainment & media, hospitality, service based business, lifestyle businesses, financial services, retail and not-for-profit, in Australia, Asia, the United Kingdom and the United States. What follows is the thinking I keep returning to.
Most disputes are solvable without legal action
When a customer becomes unhappy enough to dispute a bill, refuse to pay, or threaten action, owners often default to either defensive aggression or anxious capitulation. Both are expensive. The middle path — calm engagement, genuine listening, and a willingness to resolve fairly — settles the overwhelming majority of disputes for considerably less than either the legal cost or the reputational damage of fighting them out.
The first response, always
Acknowledge quickly, even if you don't yet have an answer. 'Thank you for raising this, I want to understand what happened, can we talk on Thursday at 10am?' is almost always better than silence or immediate defence. Most disputes escalate because the customer felt ignored more than because of the original issue. A timely acknowledgement de-escalates more situations than any clever argument later.
The structured conversation
- Let them tell the whole story before responding.
- Acknowledge what is true, even if other parts are not.
- Ask what would, in their view, resolve this.
- Offer your view of a fair outcome.
- Get the agreed resolution in writing, with both parties' acceptance.
When to refund, when to hold the line
Some disputes are best resolved with a refund or partial refund, even when you believe you were in the right. The administrative and emotional cost of fighting often exceeds the amount in dispute, and the goodwill from a graceful concession sometimes outlives the loss. Hold the line on principle when the customer is genuinely behaving badly; concede on small things when the cost of being right exceeds the cost of being generous.
Chargebacks deserve special care
Card chargebacks have specific timelines and evidence requirements. If a customer initiates a chargeback, gather the evidence — signed quote, communications, proof of delivery — and respond through the card processor within the stated timeframe. Failure to respond is a default loss. With evidence, most chargebacks are reversed in the merchant's favour, but only if you actually fight them promptly.
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The contents of this paper are the opinion of Clear Point Advisory only. Readers should rely on their own judgement and obtain professional advice appropriate to their circumstances.