E-commerce fraud protection platform ClearSale has acquired chargeback fraud solution provider ChargebackOps.
ChargebackOps will retain its own branding
The Brazilian firm will pay an initial $3.6 million for the Utah-based start-up, followed by two more instalments worth a possible $600,000 each contingent on the company’s performance over the next 24 months.
The deal will mean ClearSale can provide an end-to-end solution for combating fraud, particularly chargebacks. The company says both chargebacks and fraud are on the rise, citing research that claims 94% of merchants identify chargebacks as significantly affecting their business, with one in five chargeback claims the result of ‘friendly fraud’.
Friendly fraud occurs when a consumer makes an online shopping purchase with their credit card and then requests a chargeback from the issuing bank after receiving the purchased goods or services.
ChargebackOps assists merchants in dealing with chargebacks and aids them in the investigation and response to these chargebacks, saving them time and money.
“Chargebacks are an enormous and growing problem for e-commerce merchants,” says ClearSale executive vice president and partner Rafael Lourenco.
Lourenco says supply chain issues are also climbing, with 45% 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 deal complements ClearSale’s offering, which leverages AI to detect fraud and prevent chargebacks in the first place. The firm also helps merchants recoup any losses associated with sales that result in a claim.
ChargebackOps will retain its own branding and its executive team will continue to run the company.
The start-up was founded in 2015 by the core team of CyberSource, the organisation formerly responsible for Visa’s chargeback management services.
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- Source: https://www.fintechfutures.com/2022/02/anti-fraud-firm-clearsale-acquires-us-tech-start-up-chargebackops-for-initial-3-6m/
