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Justt raises $70m to take on chargeback system

Justt raises $70m to take on chargeback system

Justt, a startup using machine learning to help online merchants prevent false chargebacks, has come out of stealth with $70 million in funding.

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. The firm has also secured investment from big-name angels, including Facebook's David Marcus, former head of Square Capital Jacqueline Reses, and DoorDash executive Gokul Rajaram.

False chargebacks, also known as friendly fraud, occur when shoppers incorrectly dispute charges to their card, resulting in their financial institution cancelling their payments and merchants losing earned revenues. Last year, chargeback fraud cost merchants more than $125 billion in lost revenues and accounted for 85% of all reversed transactions, says Justt.

To help tackle this, the firm automates chargeback disputes on behalf of merchants, using AI to flag incorrect claims, which typically represent at least 85% of disputes.

The company does not charge up-front fees, instead, getting paid when businesses save by defeating false chargebacks.

Ofir Tahor, CEO, Justt, says: "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."

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