Embedded Payments

Business classification recommendation

The Business Classification Recommendation API automatically suggests the most relevant North American Industry Classification System (NAICS) codes for a business based on its organization description. These codes help identify the industry a business operates in, which is essential for risk assessment and Know Your Customer (KYC) due diligence.

Key Benefits

Improved end-user experience: Suggests the most suitable industry codes, eliminating the need to search through extensive code lists.
Simplified platform development: Platform developers do not need to validate industry codes or maintain static code tables for each classification system.
Accelerated and accurate onboarding: By accurately identifying the customer's industry classification, the API helps prevent onboarding delays caused by incorrect code selection, reduces manual review and outreach efforts, and improves straight-through processing rates during customer onboarding.

How it works

The API accepts a resourceType parameter in the request body.
The resourceType specifies which code system to use for recommendations (such as "NAICS_CODE").
The API processes the organization’s details and returns recommended codes from the specified system.

API Reference

POST /recommendations

Request Details

request

Json

{
  "resourceType": "NAICS_CODE",
  "values": [
    {
      "key": "organizationName",
      "value": "Top Cookies"
    },
    {
      "key": "organizationDescription",
      "value": "We are an online bakery shop. You can order treats, cakes, breakfast items, and much more. With our monthly menus and classic selections, you can always try something new."
    }
  ]
}

Response Details

Successful Response

When the request is successful, the API returns a list of recommended NAICS codes based on the provided organization description.

Sample response:

response

Json

{
  "resourceType": "NAICS_CODE",
  "message": "",
  "resource": [
    {
      "naicsCode": "311811",
      "naicsDescription": "Retail Bakeries"
    },
    {
      "naicsCode": "311813",
      "naicsDescription": "Frozen Cakes, Pies, and other Pastries Manufacturing"
    }
{
      "naicsCode": "445291",
      "naicsDescription": "Baked Goods Retailers"
    }
  ]
}

No NAICS codes found

When the organization description does not provide enough detail or does not match any recognized industry categories, the API cannot identify relevant NAICS codes.

Sample response:

response

Json

{
  "type": "NAICS_CODES",
  "message": "No match found. Your business description is too vague to suggest relevant industry classifications. Please provide more specific details about your business activities (e.g. products and services you provide) that generate your primary source of revenue."
}

Recommended action: Update the organization description with specific information about the business’s activities, products, or services. Submit a new API call to receive recommendations.

Vague organization description

When the organization description provided lacks sufficient details or is too vague to accurately recommend NAICS codes.

Sample response:

response

Json

{
  "type": "NAICS_CODES",
  "message": "Your organization description is too vague to suggest relevant industry classifications. Please provide more specific details about your business activities (e.g. products and services you provide) that generate your primary source of revenue."
}

Recommended action: Provide additional details in the organization description and submit a new API call to receive more accurate recommendations.

Rate Limiting

The API uses a token bucket approach for rate limiting, ensuring fair usage, and optimal performance.

Session Limit: Maximum of three requests per session.
Request Interval: Only one request accepted every 10 seconds.