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Privacy Policy

Last Updated: January 2026

Overview

AI Expense Categorizer is committed to protecting your financial data privacy. This document explains how we handle your transaction data.

Data Collection

What We Collect

  • Transaction data you upload (dates, descriptions, amounts)
  • IP address for rate limiting (prevents abuse)
  • Usage statistics (anonymous - number of transactions processed, cache hit rates)

What We DON'T Collect

  • ❌ No user accounts or personal information
  • ❌ No persistent storage of your transactions
  • ❌ No email addresses or contact information

Analytics

We use PostHog for anonymous analytics to understand how the tool is used and improve it. This tracks page views and feature usage, but never your transaction data. We respect Do Not Track browser settings.

Data Processing

How Your Data is Used

1. AI Categorization

2. Merchant Caching

  • Merchant patterns (e.g., "Starbucks") are cached temporarily
  • Only merchant names are cached, NOT amounts or full descriptions
  • Cache is in-memory and resets on server restart

3. Rate Limiting

  • IP addresses stored temporarily (60 minutes)
  • Prevents API abuse and protects service costs
  • Cleared automatically every hour

Data Retention

  • ✅ Real-time Processing Only: Your transactions are NOT stored in any database
  • ✅ Session Only: Data exists only during active categorization request
  • ✅ No Persistence: All data is deleted immediately after results are returned
  • ✅ Cache Expiry: Merchant cache expires after 1 hour of inactivity

Third-Party Services

Anthropic Claude AI

  • Purpose: AI-powered transaction categorization
  • Data Shared: Transaction descriptions and amounts
  • Privacy Policy: https://www.anthropic.com/legal/privacy
  • Note: Anthropic may use data to improve their AI models per their terms

Vercel Hosting

PostHog Analytics

  • Purpose: Anonymous usage analytics to improve the product
  • Data Shared: Page views, feature usage (never transaction data)
  • Privacy Policy: https://posthog.com/privacy
  • Note: We respect Do Not Track browser settings

Security Measures

Data Protection

  • ✅ All communication encrypted via HTTPS/TLS
  • ✅ No persistent database (stateless architecture)
  • ✅ Rate limiting prevents abuse
  • ✅ Input validation prevents malicious uploads
  • ✅ Server logs sanitized (no sensitive data logged)

What We DON'T Do

  • ❌ Never sell or share your data with third parties
  • ❌ Never store your transactions after processing
  • ❌ Never use your data for marketing
  • ❌ Never share data across users

Your Rights

Data Control

  • Right to Access: Since we don't store data, there's nothing to access
  • Right to Delete: Data is automatically deleted after each request
  • Right to Port: Download your categorized results anytime
  • Right to Opt-Out: Simply don't use the service

Consent

By using AI Expense Categorizer, you consent to:

  1. Sending your transaction data to Anthropic's Claude AI API
  2. Temporary caching of merchant patterns for performance
  3. IP-based rate limiting for abuse prevention

Compliance

GDPR (EU Users)

  • Lawful Basis: Legitimate interest (service operation)
  • Data Minimization: Only collect what's necessary
  • Purpose Limitation: Only used for categorization
  • Storage Limitation: No long-term storage
  • Right to Erasure: Automatic (nothing persists)

CCPA (California Users)

  • No Sale of Data: We never sell personal information
  • No Sharing: Data not shared with third parties (except AI provider)
  • Notice at Collection: This privacy policy
  • Right to Know: Covered in this document

Children's Privacy

This service is not intended for users under 13 years old. We do not knowingly collect data from children.

Changes to Privacy Policy

We may update this policy occasionally. Check the "Last Updated" date at the top. Continued use after changes constitutes acceptance.

Transparency

Our architecture is stateless by design. We don't maintain a database of user transactions. The merchant cache and rate limiting use temporary in-memory storage that resets on server restart.

Best Practices for Users

Protect Your Privacy

  • ✅ Remove account numbers from CSVs before upload
  • ✅ Use only recent transactions (don't upload entire history)
  • ✅ Download results immediately, then clear browser
  • ⚠️ Avoid uploading on public WiFi
  • ⚠️ Close browser tab after use

What to Upload

  • ✅ Date, description, amount (minimal data)
  • ❌ Don't include: SSN, account numbers, card numbers

Security Recommendations

For maximum security when handling financial data:

  • Use a private network (avoid public WiFi)
  • Clear your browser after exporting results
  • Remove account numbers from CSVs before uploading

By using AI Expense Categorizer, you acknowledge that you have read and understood this Privacy Policy.