For context I run a small digital marketing agency. We took on a client for a budget of 5,000$. We spent almost all of the budget for the client to get good results and we’re barely profiting. Since the client was unhappy with the speed of the campaign the client asked for a refund. We told the client that we had already spent the money to start the campaign but they didn’t care and are now threatening to reverse the wire and report us for fraud.

How likely is the client to be able to reverse the bank wire? The 5,000$ would take a large chunk out of the business account which we simply cannot afford to take that loss. We didn’t even profit 500$ on this campaign. Is it even possible or are these just empty threats?