Casap Raises $56 Million to Help Banks Catch Cardholders Who Falsely Dispute Their Own Purchases
Casap, which sells AI agents that handle card disputes and chargebacks for banks, said on October 28 it raised a $56 million Series B led by Base10 Partners, with Experian and Synchrony joining as strategic investors. The round brings its total funding to $90 million. Casap says customers have cut first-party fraud losses by up to 51% and resolve disputes in 8 days instead of as long as 90. Those results are the company's own; it declined to disclose a valuation, Fortune reports.
The fraud Casap is built to catch is committed by the customers themselves. Cardholders now account for nearly a third of fraudulent transactions, Fortune reports, a shift it attributes partly to AI tools that make disputing charges easier and to social media groups sharing tips. "When you look at the rules that govern these disputes, they are written in a way that almost assumes that no one lies," Casap chief executive Shanthi Shanmugam told Fortune.
The round#
Casap said on Wednesday it raised a $56 million Series B led by Base10 Partners, with strategic participation from Experian and Synchrony and continued support from existing investors including Emergence Capital and Lightspeed Venture Partners. The round brings its total funding to $90 million and comes just over a year after a $25 million Series A, the company says. Casap declined to disclose a valuation, according to Fortune.
Casap says its revenue has grown tenfold since the Series A and that it works with more than 100 banks, credit unions, fintechs and processors. The company was founded by Shanmugam, formerly of Robinhood, and Saisi Peters, formerly of Chime.
What the agents do, by Casap's account#
Casap says its agents handle disputes from intake and investigation through decisions, evidence collection, recovery and customer communication, applying each institution's own policies and escalating decisions that need human judgment. Across its customers, the company claims up to a 51% reduction in first-party fraud losses, a 96% chargeback win rate against what it calls a 60% industry average, and resolution times cut from as long as 90 days to 8. It also says 73% of dispute cases are resolved through automation and that human processing time has fallen from 45 minutes to one or two minutes.
Shanmugam told Fortune the signals Casap uses to judge whether a cardholder might be lying include the card's physical location and spending patterns, though the company does not disclose the full set. Fortune adds that many institutions simply approve disputes below a threshold, typically around $30, rather than pay to investigate them.
Casap says it will use the money to expand into fraud, collections, claims and complex exceptions. Experian's involvement is aimed at signals that help distinguish genuine fraud from first-party misuse, according to the release.
Limits#
- All performance figures, including the 51%, 96% and 8-day numbers, are Casap's own and were not independently audited in either source. The release does not say how the 60% industry average was measured.
- Fortune's article relies on interviews with Casap and the company's figures; we found no customer named on the record.