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How does AI categorization work?

Claude AI reads each transaction and categorizes it into one of ~150 categories — vendor, type, recurring vs one-off.

Updated May 12, 2026

Every transaction Pulse pulls from your bank gets classified by Claude (Anthropic's model). The classifier identifies the vendor, the spending category (e.g. 'food delivery — DoorDash', 'software — SaaS', 'payroll'), and whether the charge is recurring.

What gets classified

  • Vendor name (matched against ~30K known merchants)
  • Spending category (~150 categories)
  • Recurring vs one-off (based on 90-day cadence detection)
  • Tax-deductible vs not (estimate; talk to your CPA)

If a transaction is mis-categorized, click the row → "Re-categorize". Pulse learns your corrections — future similar transactions get the new category automatically.

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