Chargebacks have been mentioned elsewhere in this manual and just as a reminder, they are a very hot topic within the industry. Most companies will have you sign an acknowledgement letter which states that you are aware of and agree to their chargeback policies. You, as a contractor, will eventually feel that you have been unjustly “charged back” and submit a complaint. That is when the company will bring to your attention that you signed and returned a document stating that you were aware of the policy and agreed to the policy. Case closed!
The following is a typical example of the chargeback clause:
In the event COMPANY NAME determines that it is necessary to recover funds from me/my business, COMPANY NAME may, at its option, seek recovery of such funds against any or all of my work orders and it is not limited to any particular work order. In the event that no funds exist for recovery, COMPANY NAME may pursue a collection action against me which may negatively impact my credit rating.