Casap has closed a $25 million Series A funding round to expand its artificial intelligence platform that addresses payment disputes and first-party fraud, bringing the company’s total funding to $33.5 million.
The investment was led by Emergence, an early investor in Zoom and Salesforce, with participation from Lightspeed, Primary Ventures, SoFi, and other investors. The funding represents the largest venture investment to date in the payment disputes space on the issuer side, according to the company.
Targeting a $100 Billion Fraud Problem
Casap focuses on first-party fraud, where legitimate account holders dispute valid transactions. This type of fraud has grown to represent a $100 billion problem and now accounts for 30 to 50 percent of all fraud losses, based on data from LexisNexis.
The company’s platform uses AI agents to analyze evidence, predict outcomes, and automate the dispute process from initial intake through chargeback filing. A proprietary fraud scoring system flags suspicious behavior before refunds are processed.
Addressing Manual Processes and Consumer Expectations
Financial institutions currently handle disputes through manual processes that create operational inefficiencies and customer frustration. Casap’s technology aims to resolve disputes faster while maintaining fraud controls.
The company reports that financial institutions using its platform have reduced fraud losses by half while improving customer satisfaction and scaling operations without increasing staff.
Expansion Plans
The new funding will support expansion of Casap’s first-party fraud scoring engine and further investment in AI-powered decision-making capabilities. The company plans to build additional intelligence layers for post-transaction risk assessment.
Casap serves banks, fintech companies, and credit unions seeking to modernize their disputes processes. The company indicates that existing customers are requesting the application of its technology to additional workflows beyond payment disputes.