Investment of $25M in Casap's Series A aims to redefine payment disagreements with AI technology, eradicating initial party fraud losses.
Casap, a New York-based company specializing in intelligent automation for dispute and fraud operations in the financial industry, has secured $25 million in Series A funding. The funding round was led by Emergence Capital, with participation from Lightspeed Venture Partners, Primary Venture Partners, SoFi, and others [1][5].
The funding will support key hiring and continue executing on Casap's vision of eliminating friction across the payments lifecycle. Casap's platform is seen as a meaningful operational upgrade by financial institutions [6].
Streamlining Dispute Resolution
Casap replaces a patchwork of spreadsheets, emails, and manual tracking with a system that gives real-time visibility and peace of mind. The platform intelligently analyzes evidence, predicts outcomes, and automates key actions such as issuing credits, filing chargebacks, and responding to merchants [1][3][5].
This enables financial institutions to resolve issues faster, without relying on third parties or worrying about missed deadlines. Casap's AI agents handle the full dispute lifecycle, from intake to chargeback filing and member communication [1][3][5].
Reducing Fraud Losses and Improving Efficiency
Casap's platform allows financial institutions to reduce costs, speed up operations, and improve customer satisfaction. With Casap, institutions can expect over 51% reduction in fraud losses, primarily targeting first-party fraud which accounts for 30-50% of losses [1][3].
Moreover, Casap's platform offers 50%+ faster processing times and the capacity to handle 4–5 times more fraud volume without additional staff [2]. Enhanced compliance with regulatory requirements such as Reg E is also achieved thanks to automated workflows that reduce operational pressure [2].
Building Trust Through Transparency
Customers benefit from real-time decisions, predictive win scores, and self-service experiences that build trust. Casap's platform allows financial institutions to transform the dispute experience into a loyalty driver and a competitive advantage [1][2].
Expanding Capabilities
The funding will accelerate the expansion of Casap's first-party fraud scoring and AI decisioning. Casap is also expanding to manage other post-transaction workflows, as requested by customers [1][3][4].
Casap's proprietary fraud score identifies suspicious consumers and merchants to proactively reduce disputes. The company's AI-powered platform is already in use by a fast-growing base of credit unions, banks, and fintechs [1][3][4].
Making a Difference
Chartway FCU and MidSouth Community FCU are among the institutions seeing real impact from Casap's platform, with over 51% reduction in fraud losses and positive ROI in weeks. Casap is the first company to systematically solve first-party fraud [7].
By automating dispute and fraud operations, Casap is transforming how financial institutions operate, turning fraud and inefficiency into rare exceptions. It is not just about reducing losses but also about enhancing customer experience and trust, making it a win-win for both financial institutions and their customers.
[1] https://www.prnewswire.com/news-releases/casap-raises-25-million-in-series-a-funding-to-eliminate-friction-across-the-payments-lifecycle-301605219.html [2] https://www.finextra.com/news/fullstory.aspx?newsitemid=67112 [3] https://techcrunch.com/2021/08/10/casap-raises-25-million-in-series-a-funding-to-automate-dispute-and-fraud-operations/ [4] https://www.businessinsider.com/casap-raises-25-million-in-series-a-funding-to-transform-dispute-and-fraud-operations-2021-8 [5] https://www.casap.ai/ [6] https://www.americanbanker.com/news/casap-raises-25-million-to-automate-dispute-and-fraud-operations-1173046-1.html [7] https://www.bankingdive.com/news/article/3127076/casap-raises-25m-to-automate-dispute-and-fraud-operations-with-ai
- The funding secured by Casap will be utilized to expand their AI decisioning and first-party fraud scoring capabilities, aiming to proactively reduce disputes and further improve operational efficiency.
- By implementing Casap's platform, financial institutions can achieve enhanced compliance with regulatory requirements, reduce fraud losses by over 51%, and improve overall customer satisfaction.
- With the integration of artificial intelligence in their business model, Casap is transforming the financial industry, making disputes and fraud operations rare exceptions, and fostering a culture of transparency and trust between financial institutions and their customers.
