Case Study: Novo cuts unauthorized disputes by more than 90% with Sardine
Key results
The challenge
Novo, a financial platform for small businesses serving more than 250,000 customers, faced the trade-off between fraud prevention and user experience. High-friction controls such as 2FA challenges and card blocks hurt customer experience, while looser controls risked fraud and chargeback losses, and false positives left customers with blocked transactions and no immediate recourse.
The solution
Novo deployed Sardine across account opening and funding, device intelligence and behavior biometrics, AML transaction monitoring and case management, and the Auto Disputes feature. Rather than declining questionable transactions, Novo now prompts a 2FA/OTP step to recover legitimate ones.
The results, in context
Novo reported reducing unauthorized disputes by more than 90% and recovering 84% of previously blocked transactions by prompting 2FA/OTP instead of declining. The company reports a best-in-class chargeback rate on debit cards while serving more than 250,000 small-business customers.