Transaction Categorization
Transaction data enrichment with categories
What is transaction categorization?
Transaction categorization involves classifying transactions in a bank statement into categories, such as credit cards, groceries, utilities, entertainment, investment, etc. In the bank statement document, the transaction categorization feature adds three fields to each row in the transaction line item: category, sub-category, and merchant. These fields provide a broad-level categorization of transactions.
- Category: The broad classification of a transaction like
Credit
,Debit
,Transfers
, etc. - Sub-Category: Further classification under each category. For example, under
Debit
category, sub-categories could includeGroceries
,Restaurants
,Entertainment
, etc. - Merchant: The specific seller or service provider involved in the transaction. The merchant will be different for each transaction description. For example,
Amazon
,PayPal
,eBay
,Starbucks
, etc.
Category | Sub-Category |
---|---|
ATM Withdrawals | ATM Fee |
Cash Withdrawal | |
Foreign transaction fee | |
Surcharge fee | |
Debit Card Purchases | Groceries |
Gas | |
Restaurants | |
Online shopping | |
Entertainment | |
Healthcare | |
Transportation | |
Other | |
Credit Card Purchases | Groceries |
Gas | |
Restaurants | |
Online shopping | |
Entertainment | |
Healthcare | |
Transportation | |
Other | |
Direct Deposits | Salary |
Wages | |
Benefits | |
Tax refund | |
Other | |
Transfers | Between own accounts |
Between banks | |
International transfer | |
Wire transfer | |
Other | |
Fees | Monthly maintenance fee |
Overdraft fee | |
ATM fee | |
Foreign transaction fee | |
Late payment fee | |
Annual fee | |
Other | |
Interest | Savings account interest |
CD interest | |
Other | |
Checks | Check deposit |
Check payment | |
Other | |
Investments | Stock purchase |
Stock sale | |
Mutual fund purchase | |
Mutual fund sale | |
Dividend payment | |
Capital gains | |
Other | |
Foreign Transactions | Currency exchange |
Foreign ATM withdrawal | |
Foreign transaction fee | |
Other |
Why use transaction categorization?
- Transaction categorization is beneficial for gaining insights into the spending habits of the bank statement account.
- Listing fields such as categories, sub-categories, and merchants provide reviewers with a comprehensive overview of how a user's finances are distributed across different areas.
- This breakdown facilitates better analysis and tracking of cash flows in the account.
How to enable transaction categorization on bank statements
Steps:
- To enable transaction categorization, set the additional parameter
enable_category
totrue
in the document type's Pre-processing settings. Appendenable_category:true
to the additional parameters field.
![](https://t3304041.p.clickup-attachments.com/t3304041/88e873dc-5aac-4342-bad4-38b093fe0c96/image.png)
- This will populate the
category
,subcategory
, andmerchant
fields in the transaction tables of new documents or retried documents in that document type. - This categorization of transactions will take approximately 10 minutes after the processing of the document.
- The status of the categorization will be shown in the key value field review screen as either of the following:
- not enabled
- pending
- enabled: Processing
- enabled: success
- Only after the status is set as
enabled: success
the categories will be shown properly in the transaction tables.
Updated 4 months ago