Amsterdam-based Guzco has raised €1 million in a funding round led by Arches Capital, with participation from angel investors from across the European payments sector.

Guzco builds fraud protection software for e-commerce merchants, with tools designed to automate Klarna disputes, PayPal chargebacks, and responses to false delivery claims. The company is focused on dispute resolution and first-party fraud, a persistent issue for merchants navigating Europe’s payments ecosystem.

The investment reflects ongoing interest in payments infrastructure and merchant software tailored to European rules and operational workflows. Guzco said it will use the funding to continue developing its platform to reduce the manual workload and financial losses tied to disputed transactions.