Anti-fraud firm ClearSale acquires US tech startup ChargebackOps for an initial $3.6 million

E-commerce fraud protection platform ClearSale has acquired chargeback fraud solution provider ChargebackOps.

ChargebackOps will retain its own branding

The Brazilian company will pay an initial $3.6 million for the Utah-based startup, followed by two more installments worth a possible $600,000 each depending on the company’s performance over the course of the year. of the next 24 months.

The agreement means ClearSale can provide an end-to-end solution to combat fraud, particularly chargebacks. The company says chargebacks and fraud are on the rise, citing research that 94% of merchants identify chargebacks as significantly affecting their business, with one in five chargebacks claiming to be the result of “friendly fraud”.

Friendly fraud occurs when a consumer makes an online purchase with their credit card and then requests a chargeback from the issuing bank after receiving the purchased goods or services.

ChargebackOps helps merchants manage chargebacks and helps them investigate and respond to those chargebacks, saving them time and money.

“Chargebacks are a huge and growing problem for e-commerce merchants,” says Rafael Lourenco, executive vice president and partner at ClearSale.

Lourenco says supply chain issues are also on the rise, with 45% of chargebacks now attributed to late deliveries.

“Retailers need a comprehensive answer to protect their businesses from wrongful chargebacks, and with this acquisition, ClearSale will have end-to-end solutions to make that happen.”

The deal complements ClearSale’s offering, which relies on AI to detect fraud and prevent chargebacks in the first place. The company also helps merchants recover losses associated with sales that result in a claim.

ChargebackOps will retain its own branding and its management team will continue to lead the business.

The startup was founded in 2015 by the core team of CyberSource, the organization formerly responsible for Visa’s chargeback management services.

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