“We see Justt not only as a chargeback mitigation solution, but as our partners in navigating the jungle of chargebacks and card processing. Their hands-off solution integrates with our card processor, allowing us to move our focus from the never-ending task of fighting chargebacks to conquering our core business goals.”
Matana Soreff
Rapidly growing fintech startup Melio anticipated that chargeback problems would be the cost of their success. They also wanted to minimize distractions and focus on scaling up core operations. Consequently, Melio decided to proactively pursue a strong success rate in fighting chargebacks. Justt’s tailor-made, hands-off solution fit the bill. Starting in February 2020, Justt took over Melio’s chargeback defense and drastically improved their results, including:
Chargebacks – the price of success?
Part of the appeal of Melio’s solution is that it lets small businesses pay vendors with their credit cards, which led its monthly active users to grow in 2020 by more than 2,000 percent. But as its user base grew so did its chargebacks. Melio had a risk team that was busy fighting other types of fraud and was getting distracted fighting illegitimate chargebacks, something that was outside its real area of expertise. However, the average chargeback amounts were large enough that the company couldn’t just ignore them as the cost of doing business. Melio’s risk team wanted to refocus on its core mission to support the company as it grew, but they also needed to increase the number of chargebacks they successfully fought. Building a separate chargeback analyst team with the required expertise and training and development didn’t seem like an attractive option for a rapidly growing startup.
The risk team at Melio was open to new solutions that would allow a more hands-off approach to chargeback mitigation. But the team also couldn’t afford a lot of development time that would take up resources and distract company management during the implementation phase.
With Justt, Melio found a solution that required no setup fees and minimal time investment. The entire process of outsourcing all the company’s chargeback details from its payment service provider took just 2-3 weeks to complete.
Instead of spending resources building the in-house expertise necessary to win payment disputes, Justt gave Melio an immediate improvement in the number of chargebacks they fought as well as their success rate. This included an incredibly high rate of success reclaiming high-ticket chargebacks in the notoriously difficult to win arbitration stage of credit card disputes.
Melio implemented the Justt solution in 2020. One year later the company’s success rate had grown 54.5 percentage points to cover 85.8 percent of chargebacks fought. Not only did their success rate jump, but it did so while the volume of chargebacks expanded in keeping with the rapid growth of Melio’s revenue. Over the course of the year, the company prevented $376,000 in revenue loss by working with Justt and successfully contesting chargebacks.
If you’re interested in elevating your chargeback recovery rates with Justt, book a demo today.
If you’re interested in elevating your chargeback recovery rates with Justt, book a demo today.
