Small businesses are losing revenue to fraudulent chargebacks from Capital One and Discover despite having ID checks, signed receipts, and security cameras, as these banks favor cardholders over merchants.

Existing fraud prevention measures like ID checks and signed receipts are not considered sufficient evidence by Capital One and Discover to contest chargebacks.

Severity

4High

Willingness to Pay

implied

Added

May 8, 2026

Workarounds Described

checks IDs to verify customer
makes customers sign receipt
runs security cameras 24/7

Implied Software Gaps

Automated evidence collection and submission for chargeback disputes
Real-time transaction risk scoring to block fraudulent payments before they happen

App Concept

ChargeBackShield

A software platform that helps small businesses prevent and fight fraudulent chargebacks by automatically collecting and submitting compelling evidence, including signed receipts, ID scans, and security camera timestamps, tailored to each card network's requirements. It also flags suspicious transactions in real-time to block high-risk payments.

Key Features

Auto-collect and store evidence (signed receipt, ID photo, camera clip) per transaction
Real-time risk scoring and transaction blocking for high-risk cards or patterns
Automated dispute submission with network-specific evidence packages
Dashboard to track chargeback status and win rates, with alerts for new disputes
Integration with POS systems and security cameras

Target Users: Small business owners in service industries (salons, clinics, repair shops) with 1-10 employees who face frequent credit card chargebacks.

Revenue Model: $29/mo per location flat fee, plus $15 per chargeback dispute submitted via the platform

Existing Solutions Mentioned

ID checksigned receiptsecurity camera

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