Casap, a startup that uses AI to handle card disputes, raised $56 million. Honest customers could get refunds sooner while false claims get caught more often.
Casap, a startup that uses AI to settle card disputes for banks, has raised $56 million. Base10 Partners led the round. Experian and Synchrony joined as investors. The company says its tools cut dispute times from up to 90 days to eight, and that banks lose less money to people who file false claims.
First-party fraud, often called friendly fraud, is simple. A person buys something, then disputes the charge and claims they did not make it. Sometimes it is a real mistake. Most of the time, the article says, it is not.
A survey by Casap and Cornerstone Advisors found it made up 36% of reported fraud in 2024, up from 15% a year earlier. Seed investor Primary puts the cost at over $100 billion a year.
Casap's AI agents take a dispute from start to finish. They handle intake, investigate, make decisions, gather evidence, recover funds and talk to the customer. Each bank sets its own rules, and the agents follow them. Cases that need human judgment are passed to a person.
These figures come from the company and its customers:
Over 100 banks, credit unions, fintechs and processors use Casap. Synchrony uses it to support its customer service. Experian will explore first-party fraud and consumer intent signals with the startup.
For everyday customers, the pitch is faster refunds when something genuinely goes wrong. Banks face a tradeoff. Clamp down on disputes and honest customers get annoyed. Go easy and fraudsters get paid. Base10's Adeyemi Ajao says Casap changes that tradeoff.
The pressure on banks is real. Two-thirds of surveyed institutions expect fraud losses to rise again in 2026, and nearly half do not know how many false claims their tools catch.
Casap raised a $25 million Series A about a year ago and says revenue has grown tenfold since. Total funding is now $90 million. The company plans to move beyond disputes into fraud, collections, claims and complex exceptions, which the article calls some of the most expensive jobs in finance.
The results above are reported by Casap and its customers. The material does not say they were checked independently. It also does not say how the system treats honest customers whose disputes get flagged, or when new products will launch.
AI is being used to speed up card dispute refunds and catch false claims, but the strongest results so far come from the company itself.
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