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For auditing purposes I need to record individual email bounces. Do you have an api or reporting feature that does that?

Seems you can set up webhooks to do just that! [1]

These are the events: send, hard_bounce, soft_bounce, open, click, spam, unsub, reject

The API doc does not make it clear if I am getting the recipient, subject line, and bounce type back.

You do get all the information we have on the message and the bounce. Recipient, sender, subject line, bounce info, tags, etc.