Justt emerges from stealth with $70M to battle chargeback fraud with AI


Justt, an organization growing an AI-powered platform to battle fraudulent chargebacks, as we speak emerged from stealth with $70 million raised throughout three funding rounds, together with a collection B led by Oak HC/FT and two beforehand unannounced rounds led by Zeev Ventures and F2 Enterprise Capital, respectively. CEO Ofir Tahor says that the proceeds will likely be used to broaden Justt’s gross sales and advertising operations within the U.S. and Europe and triple the scale of the corporate’s Israel-based R&D workforce.

False chargebacks, often known as “pleasant fraud,” happen when customers wrongly dispute credit score or debit card prices — costing on-line sellers an estimated over $125 billion in misplaced revenues. As transactions transfer on-line, any such fraud has turn out to be extra frequent. Ecommerce retailers stand to lose roughly $20 billion in 2021 on account of felony exercise, in accordance to Juniper Analysis — an 18% improve versus 2020.

Justt’s product combines AI with human reviewers to collect proof refuting illegitimate chargeback claims and work with bank card corporations on behalf of retailers. Justt integrates with retailers’ cost suppliers, kicking off dispute resolutions when the platform’s algorithms detect probably incorrect chargebacks.

“The pandemic has shifted shopping for on-line, driving a increase in on-line transactions and a resultant improve in fraudulent chargeback actions. That has led many retailers to understand that their current laissez-faire method to chargebacks isn’t scalable or sustainable — and that, in flip, has pushed a surge in demand for chargeback mitigation options,” Tahor instructed VentureBeat through electronic mail. “Justt has seen enterprise skyrocket through the pandemic, not simply because chargeback fraud has elevated, however as a result of retailers are concurrently going through different pressures — financial turbulence, provide chain points, labor shortages, and extra — that make it arduous to divert assets to in-house mitigation efforts.”

Preventing chargebacks with AI

Valby, Denmark-based Justt was cofounded in 2016 by Tahor and Roenen Ben-Ami. Tahor was beforehand the top of social media at Adobe and Magento, whereas Ben-Ami served as a enterprise danger supervisor and fraud analyst at Simplex.com, a cryptocurrency funds startup.

“Whereas spearheading danger administration efforts at Simplex, Ben-Ami started growing tailor-made guide processes to assist crypto retailers to battle again in opposition to illegitimate chargebacks. He quickly realized, nevertheless, that delivering personalized mitigation assist at scale for all industries fairly than simply crypto would require a brand new method, with AI-powered automation to ship an efficient however hands-off expertise for retailers,” Tahor stated. “To create that resolution, Roenen reached out to me. I’d seen retailers wrestle with related challenges — and develop pissed off with the low-tech, labor intensive chargeback dispute course of — whereas launching ecommerce social-marketing startup Shopial and serving as head of Magento.”

Justt employs AI and machine studying to customise mitigation processes on a merchant-by-merchant foundation, in accordance Tahor. The platform builds proof utilizing numerous decision-making fashions for a dispute skilled on knowledge from a service provider’s transaction historical past, in addition to stay evaluation of ongoing outcomes.

Justt is at the moment processing thousands and thousands of knowledge factors. By subsequent yr, that quantity is predicted to develop to billions.

“Each transaction is listed in relation to scores of chargeback cause codes utilized by bank card networks, offering key insights into the sorts of transactions that set off chargebacks, and enabling us to quickly determine and treatment potential fraud throughout a variety of industries,” Tahor defined. “Each service provider’s Justt implementation is exclusive, however each service provider advantages from our capacity to leverage huge knowledge from the huge variety of chargebacks and disputes that we now scrutinize, spot patterns and indicators amid the noise, and optimize our dispute instruments in actual time.”


Eighty-six % of all chargebacks are possible circumstances of pleasant fraud, in keeping with one supply, and retailers lose $2.40 for each greenback of chargeback fraud. On the present fee, the associated fee in income, merchandise, delivery prices, and charges on account of chargebacks might method the $30 billion mark by the tip of the last decade.

Whereas Justt competes with Chargehound, Chargeback.com, Midigator, Chargebacks911, and ChargebackGuru in a fraud administration options market anticipated to be value $10.4 billion by 2023, the corporate claims it’s already processing 10,000 chargebacks monthly for “very giant” enterprise shoppers. Tahor attributes the success partially to Justt’s “contingency-style” enterprise mannequin, which solely prices retailers when Justt recovers funds from a chargeback dispute.

“[Our competitors] both provide low-tech ‘hands-on’ guide merchandise that require vital time and vitality from retailers, or merchandise that depend on non-expert outsourced groups to handle chargebacks for retailers,” Tahor stated. “Justt’s resolution delivers a easy however transformative core profit — it’s a genuinely hands-off mitigation resolution that delivers a radically larger success fee when contesting chargebacks.”


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