In the world of e-commerce, chargebacks can feel like an unavoidable storm on the horizon, one that many merchants weather without much recourse. Enter Justt, a Tel Aviv-based startup that has recently emerged from stealth mode with a mission to revolutionize the way online merchants handle chargebacks. Armed with $70 million in funding, Justt is not only automating the dispute process but is also helping businesses reclaim significant revenue lost to fraudulent claims. This blog delves into how Justt is reshaping the chargeback landscape through its innovative AI-driven solutions.

The Chargeback Dilemma

Chargebacks occur when a customer disputes a transaction, often leading to financial losses for businesses. Recent statistics suggest that these chargebacks, particularly “friendly fraud,” account for an alarming 85% of disputes, amounting to over $125 billion in losses annually. With many merchants viewing these losses as the cost of doing business, the need for a more effective solution has never been more urgent.

Breaking Down Justt’s Approach

Founded in 2020 by Roenen Ben-Ami and Ofir Tahor, Justt has invested heavily in artificial intelligence to address these challenges. What sets Justt apart from its competitors is its fully automated approach, which not only enhances efficiency but also tailors its services to the unique needs of each merchant. Here are a few key aspects of Justt’s operational framework:

• Automation at Its Core: Justt leverages AI to gather evidence and refute chargeback claims on behalf of merchants. This entails analyzing a myriad of variables including checkout processes, transaction details, and confirmation communications.
• Success-Driven Model: The company does not charge its clients upfront. Instead, it follows a success-based model, only collecting fees if it successfully recovers funds for its clients, thus minimizing financial risk.
• Customized Solutions: Unlike others in the industry that rely on generic templates, Justt’s system is built for each merchant individually, which enhances the likelihood of recovering lost revenue.

The Surge in Demand

The COVID-19 pandemic catalyzed a boom in e-commerce, but it also heightened the incidence of illegitimate chargebacks. As more businesses pivoted online, they became vulnerable to these disputes. Tahor noted that economic uncertainties and disrupted supply chains have spurred an increase in fraudulent transaction reversals. Justt has adeptly positioned itself as a solution to this growing problem.

Future Horizons: Expansion Plans and Funding Utilization

With fresh capital in the bank, Justt is ready to amplify its efforts. The company intends to aggressively expand its footprint in North America, setting up its U.S. headquarters in New York City and planning for a West Coast office. In addition to enhancing its sales and marketing operations, Justt plans to triple its R&D workforce in Israel in 2022, underscoring its commitment to product development.

Why Justt Matters

As Matt Streisfeld from Oak HCFT points out, many brands currently lack systems to effectively navigate the complexities of chargeback disputes. By providing a comprehensive, technology-driven solution, Justt is not only alleviating the burden on e-commerce businesses but is also paving the way for smarter financial management. The company’s vision to change how merchants perceive chargebacks is both revolutionary and necessary in today’s digital retail environment.

Conclusion

Justt’s entry into the market signifies a promising shift in the chargeback dispute process. As they continue to refine their technology and expand their reach, it is clear that Justt represents a vital resource for online merchants striving to protect their bottom lines against fraudulent chargebacks. As the company charts its course for future growth, it offers a blueprint for success that is both innovative and essential in today’s evolving marketplace. For more insights, updates, or to collaborate on AI development projects, stay connected with fxis.ai. At fxis.ai, we believe that such advancements are crucial for the future of AI, as they enable more comprehensive and effective solutions. Our team is continually exploring new methodologies to push the envelope in artificial intelligence, ensuring that our clients benefit from the latest technological innovations.