Chargeflow, a startup leveraging artificial intelligence (AI) to combat chargeback fraud, has raised $11 million in a seed funding round led by OpenView Venture Partners. This investment adds to Chargeflow’s earlier undisclosed seed funding of $3 million, bringing its total funding to $14 million.
Entrepreneurial Visionaries Found Solution
Established in 2021 by Ariel Chen and Avia Chen, entrepreneurs with a background in creating Babe Cosmetics, Chargeflow addresses the challenge of chargeback fraud. Identifying a lack of solutions in the e-commerce sector, they took the initiative to tackle the problem head-on.
Customized Evidence Submission with AI
Employing machine learning, Chargeflow tailors dispute evidence for each chargeback. This includes essential documentation like delivery confirmations and signed orders, which is then automatically presented to relevant banks or credit card companies. Handling chargebacks can be intricate due to varying codes and evidence criteria across credit card networks.
Rising Fraud Incidents Pose Concerns
Businesses face considerable losses from fraudulent chargebacks, costing time and resources. In a recent survey, 65% of merchants reported a surge in chargeback fraud compared to the previous year. The financial impact is significant, with estimates suggesting merchants lose $34 for every $1 in chargebacks, a figure predicted to rise to $193 by 2023.
Empowering Merchants with Smart Solutions
Chargeflow optimizes the chargeback dispute process by matching disputes with transaction data, verifying codes and requirements, and producing responses using adaptable templates. Human experts review AI-generated responses before submission.
Integrating and Innovating
Chargeflow seamlessly integrates with existing e-commerce platforms and payment service providers. The company assesses the potential success rate of chargeback disputes, determining charges based on successful recovery outcomes for merchants.
Confidence in Competitive Landscape
Despite a competitive environment with players like Chargehound, Justt, Midigator, and Kount, Chargeflow’s founders believe in its growth potential. The startup’s mission revolves around helping merchants reduce chargeback-related woes, enhance margins, and minimize operational costs.
Fueling Future Development
The funding acquired will drive Chargeflow’s technological advancements and U.S. expansion efforts. Additionally, the funds will contribute to doubling their workforce from approximately 40 employees to meet increasing demand and market reach.
Chargeflow secures $11 million in seed funding led by OpenView Venture Partners. The startup employs AI to combat chargeback fraud, customizing evidence submissions for each case. With rising fraud incidents, Chargeflow’s innovative approach empowers merchants to handle chargeback disputes more efficiently. The funding will support technological development, U.S. expansion, and workforce growth.
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