Dispute management firm Chargeback has completed a $6.6 million Series A1 funding round led by FINTOP Capital and Next Frontier Capital with participation from existing investors including Next Coast Ventures and Kickstart Fund.
Chargeback said the investment will be used to accelerate the company’s efforts to help merchants with dispute management.
“Dispute management has historically been a labor-intensive cost of doing business and a poor experience for customers,” said Chargeback in a statement. “Additionally, digital transactions are disputed 12 times more often than in-store purchases. With the Covid pandemic, there has been an overnight spike in e-commerce which has only exacerbated the situation for online merchants.”
“Merchants should expect to see more chargebacks and disputes
during the duration of the pandemic.”
In the blog post, the firm notes several types of fraud categories have become more prevalent during the Covid-19 pandemic, including e-commerce fraud, BOPIS (Buy Online, Pick Up In Store) fraud and friendly fraud.
“The economic uncertainty plus the job losses brought about by the Covid-19 pandemic have led may consumers to cut back on their purchases and even reconsider some purchases that they had made before the pandemic. Merchants should expect to see more chargebacks and disputes during the duration of the pandemic.”