Justt, a Chargeback Mitigation Fintech, Secures $70M to Take On Outdated Chargeback System

Justt, a chargeback mitigation pioneer, has announced that it has secured $70 million in funding as it further expands its mission to assist merchants with combating false chargebacks with smart tech.

As mentioned in the announcement, the funding was raised across three tranches, “including a Series B round led by Oak HC/FT and two previously unannounced rounds led by Zeev Ventures and F2 Venture Capital, respectively.”

False chargebacks, also referred to as “friendly fraud”, take place when consumers incorrectly dispute charges to their credit/debit card, “resulting in their financial institution canceling their payments and merchants losing earned revenues.”

Introduced in the 1970s, this system takes a significant chunk out of online retailers’ profits: last year, chargeback fraud reportedly cost merchants over $125 billion in lost revenues and “accounted for 85% of all reversed transactions.” Almost 80% of merchants “still have no solution in place to help them identify and prevent such fraud,” the update revealed.

Established by technology sector professionals Roenen Ben-Ami and Ofir Tahor, Justt aims to  completely automate chargeback disputes “on behalf of merchants.”

The firm’s AI-enhanced solution enables it to reliably identify incorrect chargebacks, which usually “represent at least 85% of disputes.”

Justt leverages deep expertise “navigating the antiquated and opaque chargeback system, together with smart tools, to build a system tailored to each merchant that gathers the most compelling evidence and submits it on their behalf,” the update explained. The result is “a fully customized and hands off solution, eliminating the need for complex, costly, and time-consuming in-house mitigation programs,” the announcement noted.

Previously doing business as AcroCharge, Justt is reporting steady growth in the past 11 months, “with annual recurring revenue (ARR) growing 20% month-over-month and headcount increasing more than 25-fold to more than 110 employees.”

Strategic individual investors in Justt “include David Marcus, former President at PayPal; Jacqueline Reses, former Head of Square Capital; and Gokul Rajaram, an executive at DoorDash.”

Before Justt, virtual payments platform Melio’s in-house mitigation team was “only able to reclaim about 30% of false chargebacks — but the company’s success rate soared almost threefold after they switched,” the announcement revealed.

Matana Soreff, Melio’s Vice President of Risk & Compliance, stated:

“Justt’s hands-off solution integrates with our card processor, allowing us to shift our focus from the never-ending task of fighting chargebacks to conquering our core business goals,”

Additionally, Justt features a zero-risk business model, “with no up-front fees and no need to pay a dime until funds are recovered. Instead, Justt is paid when businesses save by defeating false chargebacks — a unique win-win approach that ensures merchants always come out ahead,” the announcement added.

Justt CEO Ofir Tahor remarked:

“The chargeback system is fundamentally unjust, but many merchants view their losses as simply the cost of doing business. At Justt, we believe there’s a better way, and that eCommerce sellers need someone in their corner as they navigate this archaic system. Justt is committed to providing a streamlined, cost-effective, and scalable solution for today’s top brands. With this funding, we’re ready to level the playing field for online merchants, helping them achieve better results, keep more of their revenues, and stay focused on growing their businesses.”

Sponsored
Sponsored Links by DQ Promote

 

 

Send this to a friend