March 29, 2018
Chargeback management firm Midigator this week secured $30 million in new funding as investors’ appetite for opportunities in the e-commerce fraud and related spaces continues to surge. The Salt Lake City-based company said it will leverage the cash infusion to develop and expand its platform, which automates chargeback prevention and representment for card-not-present merchants.
Chargebacks, which often result when cardholders find out fraudulent purchases have been charged to their credit cards, are a constant and expensive thorn in the side of e-commerce merchants. As CNP fraud continues to rise, many merchants are losing more than they should to chargebacks. According to a recent report, even when merchants respond to chargebacks (many times they don’t), win rates are low. More troubling, the report said, nearly a quarter of merchants that dispute chargebacks do not even know their win rate. Midigator said automated chargeback management can help.
“Merchants, small and large, are struggling to keep pace with the rapid growth of fraud and payment card chargebacks. Midigator’s fully-automated software platform is uniquely positioned to help processors, acquiring banks, ISOs and merchants prevent and manage chargebacks,” said Corey Baggett, founder and CEO of Midigator. “We are excited to welcome LLR as a strategic investor in our company – their deep payments experience and relationships across the financial services and technology ecosystems should help accelerate our next stage growth.”