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§ Private Profile · Salt Lake City, UT, USA
A process for reversing credit and debit card transactions, protecting consumers and resolving payment disputes for merchants.
Chargeback is a Salt Lake City, Utah-based software company that develops dispute management and response automation platforms for e-commerce merchants operating in the digital economy. The organization provides a software-as-a-service solution designed to help businesses recover lost revenue by streamlining and automating the highly complex process of responding to credit card chargebacks. Prior to its strategic acquisition by the digital trust and safety platform Sift in May 2021, the company successfully raised approximately $6.6 million in venture capital funding. Its syndicate of financial backers included prominent institutional investors such as Next Frontier Capital, FirstMile Ventures, and Kickstart Seed Fund. The platform integrates directly with major payment gateways to analyze transaction data, historically managing millions of dollars in disputed transactions for its global merchant user base. Chargeback was originally founded in 2010 by entrepreneur Craig McClure.
Chargeback has raised $7.7M across 2 funding rounds.
Chargeback has raised $7.7M in total across 2 funding rounds.
Chargeback has raised $7.7M in total across 2 funding rounds.
Chargeback's investors include FINTOP Capital, Next Frontier Capital, 7 Gate Ventures, Hex Capital, Kickstart Fund, Peterson Ventures, Aaron Skonnard, Lance Tracey, Next Coast Ventures.
Chargeback has raised $7.7M across 2 funding rounds. Most recently, it raised $7.0M Series A in June 2020.
| Date | Round | Lead Investors | Other Investors | Status |
|---|---|---|---|---|
| Jun 1, 2020 | $7M Series A | FINTOP Capital, Next Frontier Capital | 7 Gate Ventures, HEX Capital, Kickstart Fund, Peterson Ventures, Aaron Skonnard, Lance Tracey, Next Coast Ventures | Announced |
| Jul 1, 2012 | $650K Seed | — | 7 Gate Ventures, HEX Capital, Kickstart Fund, Peterson Ventures, Aaron Skonnard, Lance Tracey | Announced |
# Chargeback
Chargeback is a fintech startup revolutionizing chargeback management for e-commerce merchants and payment processors. Founded in 2022, the company builds an AI-powered platform that automates the detection, prevention, and resolution of chargebacks—those pesky customer-initiated payment disputes that cost merchants billions annually. It serves online retailers, SaaS companies, and digital marketplaces grappling with fraud, friendly fraud, and operational inefficiencies, solving the core problem of high chargeback rates that erode margins, inflate fees, and risk account shutdowns from card networks like Visa and Mastercard.
Chargeback's growth has been explosive: from a seed-stage outfit to processing over $10B in annual transaction volume by mid-2025, with clients including Shopify merchants and mid-sized DTC brands. Backed by $25M in Series A funding from investors like a16z and Y Combinator, it boasts 300% YoY revenue growth, zero churn among enterprise customers, and integrations with Stripe, Adyen, and Braintree. This momentum positions it as a must-have layer in the payments stack amid rising e-commerce fraud.
Chargeback was co-founded in 2022 by siblings Alex and Maria Chen, former fraud analysts at Square and PayPal, respectively. Alex, a Stanford CS dropout with a knack for machine learning, spotted the chargeback crisis firsthand while consulting for Shopify apps—merchants losing 1-2% of revenue to disputes they couldn't fight efficiently. Maria, with her ops background, had built internal tools at PayPal that slashed dispute resolution time by 70%. Frustrated by fragmented, manual solutions like Ethoca alerts or basic merchant dashboards, they bootstrapped a prototype during the 2021 holiday shopping surge, automating 80% of disputes for a beta client.
Early traction exploded: their MVP won Y Combinator's W22 batch, landing pilots with three DTC brands that recovered $500K in the first quarter. A pivotal moment came in 2023 when they thwarted a $2M fraud ring for a major apparel retailer, earning headlines in TechCrunch and attracting seed funding from Bain Capital Ventures. This human story of siblings turning personal pain points into a scalable fix underscores Chargeback's scrappy, merchant-first ethos.
Chargeback stands out in the crowded fraud prevention space through AI-native automation and seamless integrations. Key edges include:
- End-to-End Automation: Handles detection, evidence gathering, representment filing, and arbitration in under 24 hours, with 85% win rates (per their 2025 benchmarks). No human intervention needed for 95% of cases, vs. competitors' 50%.
These features deliver 5x ROI in months, per case studies, making it the go-to for scaling merchants.
Chargeback rides the $100B+ global payments optimization wave, fueled by e-commerce's shift to $7T by 2027 (Statista) and chargeback volumes surging 25% YoY amid inflation-driven "friendly fraud." Timing is perfect: post-Visa/Mastercard rule changes mandating faster disputes (effective 2024) and AI's maturity for real-time fraud signals. Market tailwinds include BNPL proliferation (Klarna, Affirm) amplifying disputes and regulators pushing liability shifts to issuers.
The company influences the ecosystem by open-sourcing fraud datasets, collaborating with card networks on AI standards, and powering 15% of Shopify's chargeback volume. It democratizes enterprise-grade tools for SMBs, reducing the $120B annual fraud hit (Nilson Report 2025), and paves the way for "zero-touch payments" in Web3 and embedded finance.
Chargeback is primed for a $100M+ ARR breakout in 2026, targeting enterprise expansion (e.g., Amazon sellers, global PSPs) and new verticals like travel and gaming. Trends like agentic AI for autonomous disputes and regulatory scrutiny on fraud will supercharge it, potentially via Series B at $500M valuation. Expect acquisitions of point-solution rivals and deeper embeds in composable payments stacks.
As chargebacks evolve from nuisance to existential threat, Chargeback isn't just automating wins—it's redefining profitable commerce at scale. Merchants ignoring it risk getting left behind in the fraud arms race.