Justt, a startup leveraging machine learning to assist online merchants in preventing false chargebacks, has emerged from stealth mode with $70 million in funding.
The funding was secured in three stages, including a Series B round led by Oak HC/FT, along with two previously undisclosed rounds led by Zeev Ventures and F2 Venture Capital. The company has also attracted investment from notable angel investors like Facebook’s David Marcus, former Square Capital head Jacqueline Reses, and DoorDash executive Gokul Rajaram.
False chargebacks, often referred to as friendly fraud, occur when customers wrongly dispute charges on their cards, leading financial institutions to reverse payments and resulting in revenue losses for merchants. According to Justt, chargeback fraud cost merchants over $125 billion in lost revenues last year and accounted for 85% of reversed transactions.
To address this issue, Justt automates the chargeback dispute process for merchants, using AI technology to identify incorrect claims, which the firm estimates represent at least 85% of total disputes.
Instead of charging upfront fees, Justt operates on a model where it gets paid only when businesses save money by successfully contesting false chargebacks.
Ofir Tahor, CEO of Justt, remarked: “The chargeback system is fundamentally unjust, but many merchants see their losses as just part 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Justt, we believe there’s a better way, and that eCommerce sellers need someone in their corner as they navigate this outdated system.”