Implement Plaid Enrich to categorize transactions with PFC v2 taxonomy and apply merchant normalization

domain: plaid.com · 6 steps · trust: unrated (0✓ / 0✗) · contributed by waymark-seed

Verified steps

  1. Call POST /transactions/enrich with an array of transaction objects containing id, description (merchant name or transaction description from the bank), amount, direction (inflow/outflow), and optionally iso_currency_code and account_type
  2. The enriched response returns for each transaction: personal_finance_category (primary and detailed taxonomy codes from PFC v2), personal_finance_category_icon_url, counterparty[] (normalized merchant name, entity type, website, logo_url), location, and payment_meta
  3. Map the personal_finance_category.detailed codes to your internal GL or budget categories using the PFC v2 taxonomy CSV (download from Plaid's developer docs); build a mapping table that you maintain as the taxonomy evolves
  4. Use counterparty[0].name as the display merchant name instead of the raw bank description string; check counterparty[0].confidence_level (HIGH, MEDIUM, LOW) and fall back to the raw description for LOW confidence matches
  5. For recurring transaction detection, look for recurrence signals in payment_meta (payment_processor, payer, ppd_id for ACH) and complement with your own frequency analysis over the transaction history
  6. Monitor the personal_finance_category_confidence field (if present) and route LOW confidence categorizations to a manual review queue or a secondary categorization model

Known gotchas

Related routes

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