LedgerBeam
LedgerBeam

Smart transaction categorization

Automatically classify transactions into meaningful categories with our AI-powered engine

Raw Transaction

Description:WHOLEFDS LAX 10044
Amount:$87.32
Date:2025-04-15
MCC:5411

AI Processing

Entity recognition
Pattern matching
MCC analysis
ML classification

Categorized Result

Primary:Groceries
Secondary:Food & Dining
Merchant:Whole Foods Market
Confidence:98%
Food & Dining
Shopping
Travel
Entertainment
Bills & Utilities

How Categorization Works

Our advanced AI engine analyzes multiple data points to accurately categorize each transaction

1

Data Extraction

We extract key information from transaction data including merchant name, amount, date, and MCC code.

{ "description": "WHOLEFDS LAX 10044", "amount": 87.32, "date": "2025-04-15", "mcc": "5411" }
2

AI Processing

Our machine learning models analyze the data to identify patterns and match to known categories.

3

Categorization

Transactions are assigned primary and secondary categories with confidence scores.

{ "primary": "Groceries", "secondary": "Food & Dining", "merchant": "Whole Foods Market", "confidence": 0.98 }

Benefits of Transaction Categorization

Unlock powerful insights and enhance your financial products

Spending Insights

Help users understand their spending patterns across different categories for better financial management.

Budget Tracking

Enable accurate budget tracking by automatically categorizing transactions as they occur.

Financial Planning

Support long-term financial planning with historical spending analysis across categories.

Multi-level Categories

Provide both primary and secondary categories for more granular analysis of spending.

Custom Categorization

Support for custom category mapping to match your specific business needs and user preferences.

Real-time Processing

Categorize transactions in real-time as they occur, enabling immediate insights and notifications.

Powerful Visualizations

Turn categorized transaction data into meaningful visual insights

Spending by Category

Food (35%)
Shopping (30%)
Bills (25%)
Travel (10%)

Spending Insights

Mon$45
Tue$53
Wed$55
Thu$58
Fri$57
Sat$85
Sun$33
Food
Shopping
Entertainment
Transportation

Ready to implement smart categorization?

Get started with our powerful transaction categorization API today