The 10 second video clip clearly shows Smith dragging Nichols through the door.
"She lost her balance and she fell. Well, I was already half way through the door. I just drug her maybe three, four inches," Smith said.
Nichols told police Smith grabbed her arm, pushed her down and then beat her.
Smith, who is now facing felony assault charges, told ABC Action News she was defending herself.
According to the police report, Nichols and her boyfriend first encountered Smith when they claimed to band members that they were playing their music too loudly.
"I told them all complaints need to go through me," Smith said.
Smith felt the matter was resolved until the couple got up to leave.
Both women agree on just one thing: Nichols yelled profanities at Smith while walking out.
"She yells across the bar, 'Goodnight -----!" Smith said.
According to Smith, she immediately walked out from behind the bar to escort the couple out and told them she was going to write them up. That is when Smith claims things turned physical.
"The lady slapped me across the face," Smith said.
Nichols insists she never slapped Smith and did nothing to provoke what was caught on camera.
Smith admitted to dragging Nichols and said the surveillance video only tells part of the story.
"It didn't catch the beginning of it," she said.
Smith said there is also no video of her getting attacked a second time.
"Her boyfriend tackled me and had me by the throat, took me down the hallway, dragged me and had me out there choking me," she said.
Nichols' attorney, Brian Motroni, told ABC Action News there is no way his client could have slapped Smith. Motroni said his client is a hospice patient and has limited arm movement.
Motroni said the video speaks for itself.
However, four witnesses are backing up the bartender.
Three of the witnesses provided written statements to police saying they watched Nichols slap Smith. All four witnesses also told police they heard Nichols yelling profanities at Smith and looked on as Nichols' boyfriend choked Smith.
One witness described Nichols and her boyfriend as being "abusive" to Smith.
Smith did express remorse over what occurred.
She has since lost her job at the club.
Nichols and her lawyer declined to comment on camera.