Well, when it comes to scaring, you DO have the right if someone does a chargeback when it is not warranted of taking them to small claims court. And you are totally within your rights to say this to the customer. I have said this I think twice to customers over the years. One was a customer who stiffed me with a check and kept promising to send a money order to make it good and never did. He actually did send the money order after I told him I would contact his district attorney and have him charged with passing bad checks.