Riskified was founded in 2013 by Eido Gal (CEO) and Assaf Feldman (CTO) in Tel Aviv, with the thesis that eCommerce merchants were rejecting too many legitimate orders out of fraud fear. The platform uses machine learning and a proprietary merchant network to approve or decline orders in real time, backing every approval with a chargeback guarantee. If a guaranteed order turns out to be fraudulent, Riskified reimburses the merchant.

The company went public on the NYSE in July 2021 at a $3.3 billion valuation. The stock has since declined significantly, trading around $4.62 per share with a market capitalisation of approximately $684 million as of early 2026. That said, the business reached an inflection point in Q4 2025: record quarterly revenue of $99.3 million and its first-ever GAAP profit of $5.8 million. Full-year revenue hit $344.6 million with $33 million in positive free cash flow. The company guides for $372 million to $384 million in 2026 revenue, representing 8 to 11 percent growth.

Riskified serves over 50 publicly traded companies, including Wayfair, Prada, REVOLVE, Canada Goose, Peloton, and Gymshark. The platform protects merchants across retail, travel, luxury goods, and digital commerce, processing billions of dollars in annual transaction volume as part of our AI Tools Directory's Fraud Prevention category.

The chargeback guarantee model aligns incentives. Riskified's core product shifts fraud liability from the merchant to the platform. When Riskified approves an order, it guarantees it. If that order results in a chargeback, Riskified pays. This creates a powerful incentive structure: the company only makes money when it approves legitimate orders, which means its models are optimised to maximise approvals rather than minimise risk through blanket declines. For merchants, this turns fraud prevention from a cost centre into a revenue driver.

Adaptive Checkout lifts conversion without lifting fraud. In March 2025, Riskified launched Adaptive Checkout, an AI engine that dynamically adjusts checkout security based on transaction risk. Low-risk customers pass straight through. Higher-risk sessions trigger additional verification such as CVV, OTP, or 3DS. TickPick, an early adopter, reported $3 million in incremental revenue recovered from orders that would otherwise have been declined. This is the kind of product that turns fraud prevention into a conversion tool.

A proprietary merchant network strengthens the model over time. Riskified's machine learning models are trained on transaction data from its entire merchant base. When fraud patterns emerge at one retailer, the models update across the network. This cross-merchant intelligence is difficult to replicate and creates a compounding advantage as the network grows. The company's customer base includes some of the largest global eCommerce brands, giving its models exposure to a wide variety of fraud vectors and purchase behaviours.

Financial performance signals operational maturity. The path to GAAP profitability, $298 million in cash with zero debt, and positive free cash flow of $33 million in FY 2025 indicate a company that has moved past the growth-at-all-costs phase. For enterprise buyers evaluating vendor stability, a NYSE-listed company with improving margins and no debt is a lower-risk bet than a venture-backed startup still burning cash.

Pricing transparency remains limited. Riskified charges a percentage of approved transaction value, with rates varying by industry vertical, transaction volume, and risk profile. The company structures pricing across four volume tiers (under $3 million, $3 million to $10 million, $10 million to $100 million, and over $100 million in annual GMV). No public rate card exists. Smaller merchants may find the minimum commitment challenging, and budget planning requires a sales conversation rather than self-serve exploration.

Stock price decline reflects market scepticism. The IPO priced at $21 per share in 2021. The stock now trades around $4.62, a 78 percent decline. While the business fundamentals have improved, the market is pricing in slower growth relative to the original valuation. For procurement teams that factor vendor financial health into buying decisions, the gap between IPO valuation and current market cap deserves scrutiny, even as profitability trends improve.

The eCommerce-only focus narrows the addressable market. Unlike competitors such as Sardine, which covers fintech onboarding, payments, and AML compliance, Riskified is focused specifically on eCommerce transaction fraud and policy abuse. This is a strength in depth but a limitation in breadth. Companies seeking a single fraud platform across banking, payments, and commerce will need additional vendors alongside Riskified.

Riskified uses a performance-based pricing model, charging a percentage of each approved and guaranteed transaction. Rates depend on industry vertical, transaction volume, and risk profile. The company only charges for orders it approves, aligning cost with value. Deployment is cloud-based via API integration. The company also offers a Shopify app for streamlined onboarding on that platform. Sales engagement is required for pricing and implementation planning.

Riskified maintains ISO/IEC 27001, ISO/IEC 27017, ISO/IEC 27018, SOC 1, SOC 2, and SOC 3 certifications. The company is GDPR and CCPA compliant and publishes its security posture through a public trust centre. Riskified does not store full payment card numbers, which means PCI DSS certification is not required for its core operations.

Overall: 4/5

Riskified is the strongest fit for mid-market and enterprise eCommerce merchants processing significant transaction volume who want to shift chargeback liability off their balance sheet. If your business loses revenue to false declines and your fraud team is stretched thin, the chargeback guarantee model turns fraud management from defensive cost into approved revenue. The Adaptive Checkout product adds a conversion dimension that most fraud vendors lack. Companies outside eCommerce, including fintechs, neobanks, and payment processors, should look at broader platforms like Sardine or Alloy. With GAAP profitability reached, improving free cash flow, and a clear 2026 growth outlook, Riskified is a mature vendor in a market that rewards scale.

Try Riskified: riskified.com

Is the chargeback guarantee the future of fraud prevention pricing, or does it only work at the scale Riskified already has?

Editorial disclaimer: Reviews reflect the independent editorial assessment of Major Matters and are not sponsored or endorsed by the companies reviewed. We recommend conducting your own evaluation to determine whether any product is the right fit for your specific requirements.