Brazilian antifraud technology provider ClearSale has bolstered its chargeback protection capability by acquiring ChargebackOps for $3.6 million.
The team behind Utah-based ChargebackOps was originally responsible for chargeback management at Visa’s CyberSource before founding their own service in 2015. According to a joint statement, the company’s clients include Columbia Sportswear, Chico’s and Tractor Supply Company.
Covid-19 was a catalyst for massive growth in e-commerce. Along with that growth, however, came an equally explosive growth in fraud and the chargebacks that result from it. Non-fraud chargebacks were also negatively impacted by Covid, especially for industries like ticketing and travel that faced unexpected returns and refunds at the beginning of the pandemic and as variants suddenly emerged.
“Chargebacks are an enormous and growing problem for e-commerce merchants,” said Rafael Lourenco, executive vice president and partner at ClearSale. “Supply chain issues and friendly fraud are climbing, with 45 percent of chargebacks now attributed to delivery delays. Retailers need a comprehensive answer to protecting their businesses from unwarranted chargebacks, and with this acquisition, ClearSale will have end-to-end solutions to do that.”
The acquisition continues a trend of consolidation in the antifraud technology space enabling companies to provide related value-added services to clients. ClearSale, which made its debut as a publicly traded company in September, said in a statement that ChargebackOps will retain its name and executive team.