Chargeflow Raises $35 Million to Expand AI-Powered Chargeback Automation Platform

Chargeflow raised $35 million in a Series A funding round to fuel its global expansion and the launch of additional products related to its artificial intelligence-powered chargeback automation platform.

The company’s platform is designed to prevent and combat illegitimate chargebacks, according to a Tuesday (Nov. 18) press release.

The platform is used by more than 15,000 merchants worldwide, and the company is now expanding to serve enterprise-level merchants in addition to small- to medium-sized businesses, according to the release.

“Chargebacks were designed to protect consumers, but over time the system has become unbalanced, favoring buyers and leaving merchants powerless,” Chargeflow CEO and co-founder Ariel Chen said in the release. “We’re on a mission to redefine the chargeback system itself, using AI to shift the balance of power back to merchants and create a truly fair, transparent and automated future for digital commerce.”

Chargeflow’s platform integrates with more than 100 payment, data and eCommerce platforms to detect, manage and prevent chargebacks at scale, according to the release.

The platform identifies and prevents friendly fraud before it occurs by alerting merchants when a potential chargeback is detected, the release said.

When there is a chargeback, the platform collects and analyzes transaction data, builds and submits evidence, and tracks dispute outcomes in real time, per the release.

Natalie Refuah, general partner at Viola Growth, which led the funding round, said in the release that chargeback volumes have surged and become “a significant challenge” for merchants.

“Beyond its powerful dispute automation platform, we’re equally excited about the company’s expansion into new products—Chargeflow Connect and Chargeflow Prevent—which will further enhance its value to merchants worldwide,” Refuah said.

The PYMNTS Intelligence report “Securing the Season: Fighting Fraud Without Losing Customers” found that 75% of the fraud faced by digital goods merchants during last year’s holiday shopping season came from friendly fraud, or legitimate buyers later disputing charges because of post-holiday remorse or budget stress.

The report also found that 84% of those customers bypassed the retailer entirely and filed disputes directly with banks.

Welsh FinTech Burbank said in March that it raised $6 million to develop a “Card Present over Internet” tool that it said will address fraud and chargeback issues.

In December 2024, chargeback management firm Justt raised $30 million to bolster its AI-powered platform that “leverages machine learning to optimize dispute win rates and continuously improve outcomes over time.”