Curating Merchant-Matching Training Data with Two Confidence-Gated Local LLM Judges

Merchant matching resolves a noisy payment descriptor to a retrieved merchant entity or returns no match. A key challenge in curating training labels is distinguishing teacher abstention from evidence that no acceptable entity exists: false no-match labels contaminate pseudo-labeled data, while conservative labeling reduces coverage. We investigate whether agreement between two local large language model judges improves pseudo-label reliability. A label is retained only when the judges agree, with separate ordered thresholds for selections and abstentions that guarantee disjoint positive and negative label sets. Retrospective replay on 2,000 expert-annotated queries shows that higher selection thresholds can improve positive-label purity, whereas higher abstention thresholds increase false no-match labels. At thresholds (0.86, 0.80), Muse Glimmer 30B and Gemma 4 31B jointly label 1,633 queries (81.7% coverage) at 96.88% purity; positive and negative purities are 99.47% and 93.38%. This exceeds either constituent model at the same thresholds by more than two percentage points, with lower coverage. A split-half check finds only 0.14 percentage points of threshold-selection optimism. A symmetric threshold of 0.86 adds 40 erroneous no-match labels, while 46 false abstentions persist even with no confidence threshold. Across five matched within-model comparisons, higher reasoning effort yields no clear F0.5 gain and increases median latency by 1.8-5.0 times. These results motivate separate thresholding and auditing for positive and negative pseudo-labels. The study establishes label purity, not student utility; fresh-data curation and student fine-tuning remain necessary to demonstrate downstream value.