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

Global chargeback volumes cost merchants an estimated $35 billion annually. When responding to chargebacks, merchants face a time-consuming, error-prone process: manually gathering evidence, structuring rebuttals, and collating supporting documents. This often results in incomplete or poorly organized responses that fail to prevent unjustified chargebacks.

Merchant Payment Dispute Validation Agent eliminates this bottleneck by deploying an Amazon Bedrock-powered AI agent that autonomously retrieves, validates, and packages merchant evidence while providing data-driven recommendations.

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

1. Dramatic time savings – Reduces merchant-side validation from hours of manual review to minutes of autonomous processing

2. Consistent accuracy – About 14 automated validation checks replace error-prone manual evidence review processes

3. Structured evidence package – Generates pre-validated, organized evidence rather than raw, unverified merchant information

4. Near-zero missed discrepancies – Three-dimensional cross-validation catches inconsistencies that manual review routinely overlooks

5. Compliance by design – PCI-DSS and GDPR guardrails embedded at the architecture level

6. Faster dispute resolution – Merchant-side evidence validation no longer bottlenecks the end-to-end chargeback process

7. 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.