Ecommerce fraud prevention platform Chargeback will announce it has closed a series A funding round of $6.6 million later this week, Merchant Fraud Journal has learned. The funding round comes as merchants around the world struggle with a huge increase in fraud as fraudsters try to take advantage of the COVID-19 pandemic.
“We’ve seen a 460% increase in dispute rates year over year for April 2020. This spike is definitely led by the travel and entertainment industries but we’ve also seen big bumps in other industries such as health and fitness,” said John Munro, Chargeback CEO in an email to Merchant Fraud Journal. “With the turbulent economy due to the virus, customers are in financial distress which has led to this increase in both true fraud and questionable consumer behavior.”
The round is being led by FINTOP Capital and Next Frontier Capital with participation from existing Chargeback investors including Next Coast Ventures and Kickstart Fund.
Chargeback will use the funds to accelerate its current chargeback representment offerings including helping merchants reduce overhead, increase acceptance rates, and replace manual chargeback dispute processes with automated and streamlined solutions.
“The funding will help Chargeback more aggressively scale their product, sales and marketing teams,” said Munro. “We want to both maintain our position as the leader in the space and provide the best product possible that will help merchants drastically decrease their disputes rate and the time spent managing disputes so they can focus on their core business.”
A formal announcement confirming the deal is expected to be released later this week.https://www.merchantfraudjournal.com/visa-plaid-acquire/