The two companies said the transaction would enable offering a complete solution to consumer risks before, during and after purchases, according to a blog post by Sift.
Marc Olesen, president and CEO of Sift says the acquisition will help his company completely cover the range of areas where payment fraud occurs.
“Preventing chargeback fraud is the critical ‘last mile’ of stopping payment fraud entirely,” Olesen said in the press release.
“With the addition of Chargeback’s team, technology and partners, our customers gain a true hub for fighting all types of fraud and abuse while creating a more seamless experience,” he added.
Both companies currently offer solutions to prevent and remedy stolen credentials, payment information and false chargeback claims. As e-commerce continues to grow and people increasingly rely on digital processing for bills payment and shopping, cybersecurity and payment processors are constantly looking for additional security services to protect themselves and consumers.
Chargeback had already pre-built a connector within Sift’s Connect integration hub, which includes a number of payment service provider integrations. The acquisition will further integrate Sift’s integration and provide safety teams with a fully end-to-end transaction view, enabling revenue retention and decreased dispute rates.
The SaaS chargeback protection company had previously raised $15 million in funding, including a recent $6.6 million Series A led by FINTOP Capital and Next Frontier Capital which was announced June 2020. Chargeback had a previous Series A round, announced in April 2018, which raised $6 million and was led by Next Coast Ventures.
The announcement shows Chargeback did not want to compete with the larger cybersecurity company, and will instead focus on a single solution within the Sift framework. Chargeback’s team will be merged into the Sift umbrella, and continue to provide its industry-proven fraud protection.
“As a longtime Sift partner, we’ve seen how effective full fraud coverage has been for joint customers using Chargeback’s integration with Sift,” John Munro, CEO of Chargeback, said in a statement. “Now, as one company, we have an incredible opportunity to provide a single solution to merchants so they grow with less risk.”