Merchant Payment Disputes - an Amazon Bedrock-native agentic AI solution

**What This Agent Does?**

Based on available dispute information, the Merchant Validation Agent takes intelligent, autonomous actions:

Evidence Retrieval & Validation

• Retrieves merchant evidence – Automatically fetches dispute-related documents from merchant data sources and transaction records from internal systems
• Validates merchant data – Performs cross-validation checks against internal transaction records to verify the legitimacy of disputed transactions
• Analyzes document evidence – Cross-validates document-level entities (amounts, dates, merchant names, transaction IDs) against database records and across evidence documents

Intelligence & Analysis

• Identifies discrepancies – Surfaces findings across three dimensions: dispute data vs. merchant database, document entities vs. database records, and cross-document validation
• Determines action items – Automatically identifies specific gaps or inconsistencies in evidence and surfaces structured action items for merchant or bank review
• Delivers key findings – Provides a detailed, structured list of validation findings and recommendations

Compliance & Auditability

• Notification engine – Post-validation, the agent delivers findings and recommendations to the bank authorizer or relevant party for final adjudication
• Regulatory compliance – Automatically detects and redacts sensitive merchant and transaction data in compliance with GDPR and PCI-DSS
• Audit-ready package – Every validation step, evidence retrieval, and recommendation is logged and fully traceable, meeting regulatory requirements

**Key Benefits**

• Dramatic time savings – Reduces merchant-side validation from hours of manual review to minutes of autonomous processing
• Consistent accuracy – About 14 automated validation checks replace error-prone manual evidence review processes
• Structured evidence package – Generates pre-validated, organized evidence rather than raw, unverified merchant information
• Near-zero missed discrepancies – Three-dimensional cross-validation catches inconsistencies that manual review routinely overlooks
• Compliance by design – PCI-DSS and GDPR guardrails embedded at the architecture level
• Faster dispute resolution – Merchant-side evidence validation no longer bottlenecks the end-to-end chargeback process
• Improved customer experience – Faster, more accurate dispute resolution drives higher CSAT scores

**AWS Services Architecture**

Our Agentic AI solution is built on AWS-native services to deliver an intelligent, highly scalable dispute management system.

Document Intelligence: Amazon Textract extracts structured data from unstructured documents, which is then routed to Amazon Bedrock's multi-agent framework for automated verification and validation.

AI & Decision Engine: Amazon Bedrock powers the core intelligence layer, leveraging best-in-class large language models (LLMs) to validate dispute claims and generate context-aware, intelligent responses.

Integration & Processing: API Gateway orchestrates communication across microservices, AWS Lambda handles event-driven compute, and Amazon SQS enables asynchronous processing to ensure throughput at scale.

Data & Storage: Amazon S3 manages unstructured document storage, while DynamoDB provides high-performance structured data persistence.

Frontend & Deployment: A ReactJS-based user interface is deployed on Amazon ECS with AWS Fargate, delivering a serverless, cost-efficient, and resilient front-end experience.

**Security and Compliance**

The Merchant Validation Agent is designed with financial-grade security and regulatory compliance as key features:

• PII Detection and Redaction: Amazon Bedrock Guardrails automatically detect and redact sensitive merchants and transaction data in compliance with GDPR and PCI-DSS
• Content Filtering: prevents inappropriate or biased validation recommendations from reaching analysts
• Grounding Checks: all validation outputs and recommendations are traceable to verified data sources to prevent hallucinated or unsubstantiated outputs
• Merchant Data Isolation: the agent is deployed entirely within the merchant’s AWS account; so no data leaves the merchant’s AWS environment
• Audit Trail: every agent action, tool invocation, and validation step is logged.