@dizzlkheinz/ynab-mcpb 0.13.1 → 0.15.1

package/docs/plans/reconciliation-v2-redesign.md

@@ -0,0 +1,1571 @@
+# Reconciliation Tool v2 - Complete Redesign
+
+## Executive Summary
+
+The current reconciliation tool has fundamental architectural problems that prevent it from working reliably. This document outlines a complete redesign based on:
+1. Analysis of the existing codebase and its failure modes
+2. Research into best-in-class libraries for CSV parsing, fuzzy matching, and date handling
+3. Learnings from production reconciliation engines (Midday.ai's open-source implementation)
+
+**Target Outcome:** A reconciliation tool that achieves 90%+ auto-match accuracy for Canadian bank statements against YNAB transactions.
+
+---
+
+## Document Role & Source of Truth
+
+> **⚠️ This is a design document, not a specification.**
+>
+> - **Source of truth:** The actual TypeScript implementation in `src/tools/reconciliation/` is authoritative
+> - **Code blocks below:** Illustrative pseudo-code showing intent and interfaces—not copy-paste ready
+> - **Drift expectation:** Implementation details will evolve; this doc captures architectural decisions and rationale
+> - **Update policy:** Major architectural changes should be reflected here; minor implementation tweaks need not be
+
+When in doubt, read the actual source files:
+- `src/tools/reconciliation/types.ts` - Canonical types
+- `src/tools/reconciliation/matcher.ts` - Matching algorithm (V2 with legacy compatibility)
+- `src/tools/reconciliation/analyzer.ts` - Orchestration
+- `src/tools/compareTransactions/parser.ts` - Legacy CSV parsing (to be replaced)
+
+---
+
+## Part 1: Critical Problems in Current Implementation
+
+### Problem 1: Two Incompatible `BankTransaction` Types
+
+There are two completely different interfaces with the same name:
+
+**`src/tools/compareTransactions/types.ts`:**
+```typescript
+interface BankTransaction {
+  date: Date;              // JavaScript Date object
+  amount: number;          // In MILLIUNITS (1000 = $1.00)
+  description: string;
+  raw_amount: string;
+  raw_date: string;
+  row_number: number;
+}
+```
+
+**`src/tools/reconciliation/types.ts`:**
+```typescript
+interface BankTransaction {
+  id: string;
+  date: string;            // YYYY-MM-DD string
+  amount: number;          // In DOLLARS (1.00 = $1.00)
+  payee: string;
+  memo?: string;
+  original_csv_row: number;
+}
+```
+
+The analyzer imports from the parser (compareTransactions) but expects reconciliation types. A fragile `normalizeAmount()` function tries to detect which format based on whether `date instanceof Date` - this is the root cause of most matching failures.
+
+### Problem 2: Tests Mock the Parser with Wrong Types
+
+```typescript
+// In analyzer.test.ts - THESE ARE WRONG
+vi.mocked(parser.parseBankCSV).mockReturnValue({
+  transactions: [
+    { date: '2025-10-15', amount: -45.23, payee: 'Shell Gas' }  // String date, dollars
+  ]
+});
+
+// But real parser returns:
+{ date: new Date('2025-10-15'), amount: -45230, description: 'Shell Gas' }  // Date object, milliunits
+```
+
+Tests pass but real code path fails.
+
+### Problem 3: Rigid Confidence Scoring
+
+Current weights:
+- Amount match: 40% (REQUIRED - 0 if no match)
+- Date match: 40% (within 2 days default)
+- Payee match: 20%
+
+Problems:
+1. **2-day date tolerance too tight** - banks post 3-7 days after transaction
+2. **Losing 40% for date mismatch is catastrophic** - a perfect amount + payee match with date outside tolerance only scores 60%
+3. **Payee only worth 20%** - can't compensate for date issues
+4. **Auto-match threshold 90%** - nearly impossible to reach without all three matching
+
+### Problem 4: Primitive Fuzzy Matching
+
+Current payee matching uses hand-rolled Levenshtein distance. This fails on real-world bank data:
+- "AMZN MKTP CA*123456" vs "Amazon" → Low score
+- "SQ *COFFEE SHOP TORONTO" vs "Square Coffee" → Low score
+- "PAYPAL *NETFLIX" vs "Netflix" → Low score
+
+### Problem 5: CSV Parser Fragility
+
+The `autoDetectCSVFormat()` function:
+- Only looks at first 3 rows
+- Has limited date format support
+- Fails on European number formats (1.234,56)
+- No presets for known Canadian bank formats
+
+---
+
+## Part 1b: Accuracy Target & Evaluation Plan
+
+The "90%+ auto-match accuracy" target requires operationalisation:
+
+### Definition of Success
+
+| Metric | Definition | Target |
+|--------|------------|--------|
+| **Auto-match precision** | % of `confidence: 'high'` matches that are correct | ≥95% |
+| **Auto-match recall** | % of true matches captured at `confidence: 'high'` | ≥90% |
+| **Overall match rate** | % of bank transactions with any match (`high` + `medium`) | ≥95% |
+| **False positive rate** | % of auto-matches that are wrong | ≤5% |
+
+### Evaluation Dataset Construction
+
+1. **Source CSVs:** Collect 10+ real statement exports per major Canadian bank (TD, RBC, Scotiabank, Tangerine, Wealthsimple, CIBC, BMO)
+2. **Ground truth labeling:** Manually match each bank transaction to its YNAB counterpart (or mark as "new")
+3. **Edge case coverage:** Ensure dataset includes:
+   - Recurring charges (same amount, different dates)
+   - Similar merchants (Starbucks #1234 vs #5678)
+   - Split transactions
+   - Refunds and reversals
+   - Multi-day posting delays (3-7 days)
+4. **Storage:** `test-exports/csv/labeled/` with `.csv` + `.labels.json` pairs
+
+### V1 vs V2 Comparison Methodology
+
+```bash
+# Run both implementations on the same dataset
+npm run benchmark:reconciliation -- --version=v1 --dataset=test-exports/csv/labeled/
+npm run benchmark:reconciliation -- --version=v2 --dataset=test-exports/csv/labeled/
+
+# Compare results
+npm run benchmark:compare -- v1-results.json v2-results.json
+```
+
+Output metrics:
+- Confusion matrix (TP/FP/TN/FN per confidence tier)
+- Precision/recall curves at different thresholds
+- Per-bank breakdown
+- Failure case analysis (which transaction types fail most?)
+
+### Acceptance Criteria
+
+V2 is ready for release when:
+1. Auto-match precision ≥95% across all banks in the test dataset
+2. Auto-match recall ≥90% (we catch most true matches)
+3. No regression on any bank compared to v1
+4. P95 latency <2s for 500-transaction CSVs
+
+---
+
+## Part 2: Recommended Libraries
+
+### CSV Parsing: PapaParse
+
+**Why:** Auto-detects delimiters, handles malformed CSVs gracefully, dynamic typing, excellent edge case handling.
+
+```bash
+npm install papaparse @types/papaparse
+```
+
+**Key Features:**
+- `delimiter: ""` → auto-detect
+- `dynamicTyping: true` → auto-convert numbers
+- `skipEmptyLines: true`
+- `transformHeader` → normalize column names
+- Detailed error reporting per row
+
+**Usage:**
+```typescript
+import Papa from 'papaparse';
+
+const result = Papa.parse(csvContent, {
+  header: true,
+  dynamicTyping: true,
+  skipEmptyLines: true,
+  transformHeader: (h) => h.toLowerCase().trim(),
+});
+
+// result.data = parsed rows
+// result.errors = array of {row, message} for each parsing error
+// result.meta = {delimiter, fields, truncated}
+```
+
+### Fuzzy String Matching: fuzzball
+
+**Why:** Port of Python's TheFuzz (fuzzywuzzy), battle-tested algorithms for transaction matching, includes token-based matching crucial for merchant names.
+
+```bash
+npm install fuzzball
+```
+
+**Key Algorithms:**
+```typescript
+import fuzz from 'fuzzball';
+
+// Basic ratio - simple Levenshtein
+fuzz.ratio("Shell Gas", "SHELL GAS STATION");  // 73
+
+// Token Set Ratio - handles word order, duplicates
+fuzz.token_set_ratio("AMZN MKTP CA*123", "Amazon Marketplace");  // 90+
+
+// Token Sort Ratio - alphabetizes then compares
+fuzz.token_sort_ratio("fuzzy wuzzy", "wuzzy fuzzy");  // 100
+
+// Partial Ratio - best substring match
+fuzz.partial_ratio("Netflix", "PAYPAL *NETFLIX INC");  // 100
+
+// WRatio - weighted combination of above
+fuzz.WRatio("SQ *COFFEE SHOP", "Square Coffee Shop");  // ~90
+```
+
+**Recommendation:** Use `token_set_ratio` for payee matching as it handles the common case of bank merchant names having extra tokens (location codes, transaction IDs, etc.)
+
+### Date Parsing: chrono-node
+
+**Why:** Parses natural language dates, handles many formats automatically, battle-tested.
+
+```bash
+npm install chrono-node
+```
+
+**Usage:**
+```typescript
+import * as chrono from 'chrono-node';
+
+chrono.parseDate("Sep 18, 2025");     // Date object
+chrono.parseDate("18/09/2025");       // Date object  
+chrono.parseDate("2025-09-18");       // Date object
+chrono.parseDate("September 18th");   // Date object (relative to today)
+```
+
+**Fallback:** Use with dayjs for formatting:
+```bash
+npm install dayjs
+```
+
+### Optional: Vector Embeddings for Semantic Matching
+
+For future enhancement, consider pgvector with OpenAI/Google embeddings for semantic merchant matching. The Midday.ai approach uses 768-dimensional vectors but this is overkill for v2 - fuzzball's token_set_ratio should get us to 90%+ accuracy.
+
+---
+
+## Part 3: Architectural Redesign
+
+### 3.1 Unified Transaction Types
+
+**File:** `src/types/reconciliation.ts`
+
+> **Design Note:** These types are intentionally decoupled from the YNAB SDK. The `NormalizedYNABTransaction` interface is SDK-agnostic; a thin adapter in `src/tools/reconciliation/ynabAdapter.ts` handles the conversion from `ynab.TransactionDetail`.
+
+> **Critical Decision: All amounts are in MILLIUNITS (integers).**
+> - 1000 milliunits = $1.00
+> - This matches YNAB's native format
+> - Eliminates floating-point precision issues entirely
+> - Enables exact integer comparison: `a === b`
+> - Conversion from CSV floats happens ONCE at the parser boundary
+
+```typescript
+/**
+ * Canonical bank transaction type used throughout reconciliation.
+ * 
+ * AMOUNTS ARE IN MILLIUNITS (integers, 1000 = $1.00).
+ * This matches YNAB's native format and allows exact integer comparison.
+ */
+export interface BankTransaction {
+  /** UUID generated for tracking */
+  id: string;
+  /** ISO date string YYYY-MM-DD */
+  date: string;
+  /** Amount in MILLIUNITS (negative = outflow, positive = inflow) */
+  amount: number;
+  /** Merchant/payee name from CSV */
+  payee: string;
+  /** Optional memo/description */
+  memo?: string;
+  /** Original CSV row number (1-indexed, after header) */
+  sourceRow: number;
+  /** Raw values from CSV for debugging */
+  raw: {
+    date: string;
+    amount: string;
+    description: string;
+  };
+  /** Parser warnings (e.g., ambiguous debit/credit) */
+  warnings?: string[];
+}
+
+/**
+ * YNAB transaction normalized for comparison.
+ * 
+ * This interface is intentionally SDK-agnostic. Use the adapter
+ * function in ynabAdapter.ts to convert from ynab.TransactionDetail.
+ * 
+ * AMOUNTS ARE IN MILLIUNITS - same as YNAB API native format.
+ * No conversion needed from the SDK.
+ */
+export interface NormalizedYNABTransaction {
+  id: string;
+  date: string;  // YYYY-MM-DD
+  /** Amount in MILLIUNITS (same as YNAB API) */
+  amount: number;
+  payee: string | null;
+  memo: string | null;
+  categoryName: string | null;
+  cleared: 'cleared' | 'uncleared' | 'reconciled';
+  approved: boolean;
+}
+```
+
+**File:** `src/tools/reconciliation/ynabAdapter.ts`
+
+```typescript
+import type * as ynab from 'ynab';
+import type { NormalizedYNABTransaction } from '../../types/reconciliation.js';
+
+/**
+ * Convert YNAB SDK transaction to normalized format for matching.
+ * 
+ * This adapter keeps the YNAB SDK dependency isolated from the
+ * reconciliation core logic.
+ * 
+ * NOTE: Amount stays in milliunits - no conversion needed since
+ * YNAB API already uses milliunits natively.
+ */
+export function normalizeYNABTransaction(
+  txn: ynab.TransactionDetail
+): NormalizedYNABTransaction {
+  return {
+    id: txn.id,
+    date: txn.date,
+    amount: txn.amount,  // Already in milliunits - no conversion!
+    payee: txn.payee_name ?? null,
+    memo: txn.memo ?? null,
+    categoryName: txn.category_name ?? null,
+    cleared: txn.cleared,
+    approved: txn.approved,
+  };
+}
+
+/**
+ * Batch convert YNAB transactions.
+ */
+export function normalizeYNABTransactions(
+  txns: ynab.TransactionDetail[]
+): NormalizedYNABTransaction[] {
+  return txns.map(normalizeYNABTransaction);
+}
+```
+
+### 3.2 New CSV Parser Module
+
+**File:** `src/tools/reconciliation/csvParser.ts`
+
+```typescript
+import Papa from 'papaparse';
+import * as chrono from 'chrono-node';
+import { randomUUID } from 'crypto';
+import type { BankTransaction } from '../../types/reconciliation.js';
+
+export interface CSVParseResult {
+  transactions: BankTransaction[];
+  errors: ParseError[];
+  warnings: ParseWarning[];
+  meta: {
+    detectedDelimiter: string;
+    detectedColumns: string[];
+    totalRows: number;
+    validRows: number;
+    skippedRows: number;
+  };
+}
+
+export interface ParseError {
+  row: number;
+  field: string;
+  message: string;
+  rawValue: string;
+}
+
+export interface ParseWarning {
+  row: number;
+  message: string;
+}
+
+export interface BankPreset {
+  name: string;
+  dateColumn: string | string[];
+  amountColumn?: string | string[];
+  debitColumn?: string;
+  creditColumn?: string;
+  descriptionColumn: string | string[];
+  amountMultiplier?: number;
+  /** Expected date format hint: 'YMD', 'MDY', 'DMY' */
+  dateFormat?: 'YMD' | 'MDY' | 'DMY';
+}
+
+// Presets for Canadian banks
+export const BANK_PRESETS: Record<string, BankPreset> = {
+  'td': {
+    name: 'TD Canada Trust',
+    dateColumn: ['Date', 'Transaction Date', 'Posted Date'],
+    amountColumn: ['Amount', 'CAD$'],
+    descriptionColumn: ['Description', 'Transaction Description', 'Merchant'],
+    dateFormat: 'MDY',  // TD typically uses MM/DD/YYYY
+  },
+  'rbc': {
+    name: 'RBC Royal Bank',
+    dateColumn: ['Transaction Date', 'Date'],
+    debitColumn: 'Debit',
+    creditColumn: 'Credit',
+    descriptionColumn: ['Description 1', 'Description', 'Transaction'],
+    dateFormat: 'YMD',  // RBC typically uses YYYY-MM-DD
+  },
+  'scotiabank': {
+    name: 'Scotiabank',
+    dateColumn: ['Date', 'Transaction Date'],
+    amountColumn: ['Amount'],
+    descriptionColumn: ['Description', 'Transaction Details'],
+    dateFormat: 'DMY',  // Scotiabank often uses DD/MM/YYYY
+  },
+  'wealthsimple': {
+    name: 'Wealthsimple',
+    dateColumn: ['Date'],
+    amountColumn: ['Amount'],
+    descriptionColumn: ['Description', 'Payee'],
+    amountMultiplier: 1,
+    dateFormat: 'YMD',
+  },
+  'tangerine': {
+    name: 'Tangerine',
+    dateColumn: ['Date', 'Transaction date'],
+    amountColumn: ['Amount'],
+    descriptionColumn: ['Name', 'Transaction name', 'Memo'],
+    dateFormat: 'MDY',
+  },
+};
+
+export interface ParseCSVOptions {
+  /** Bank preset key (e.g., 'td', 'rbc') */
+  preset?: string;
+  /** Multiply all amounts by -1 */
+  invertAmounts?: boolean;
+}
+
+/**
+ * Parse a bank CSV file into BankTransaction objects.
+ * 
+ * IMPORTANT: Amounts are converted to MILLIUNITS (integers) at this boundary.
+ * This is the ONLY place where float-to-milliunit conversion happens.
+ */
+export function parseCSV(
+  content: string,
+  options: ParseCSVOptions = {}
+): CSVParseResult {
+  const errors: ParseError[] = [];
+  const warnings: ParseWarning[] = [];
+  
+  // Parse with PapaParse
+  const parsed = Papa.parse(content, {
+    header: true,
+    dynamicTyping: false,  // We'll handle type conversion ourselves
+    skipEmptyLines: true,
+    transformHeader: (h) => h.trim(),
+  });
+  
+  if (parsed.errors.length > 0) {
+    for (const err of parsed.errors) {
+      errors.push({
+        row: err.row ?? 0,
+        field: 'csv',
+        message: err.message,
+        rawValue: '',
+      });
+    }
+  }
+  
+  const columns = parsed.meta.fields ?? [];
+  const preset = options.preset ? BANK_PRESETS[options.preset] : detectPreset(columns);
+  
+  // Find actual column names
+  const dateCol = findColumn(columns, preset?.dateColumn ?? ['Date', 'Transaction Date', 'Posted Date']);
+  const descCol = findColumn(columns, preset?.descriptionColumn ?? ['Description', 'Payee', 'Merchant', 'Name']);
+  
+  let amountCol: string | null = null;
+  let debitCol: string | null = null;
+  let creditCol: string | null = null;
+  
+  if (preset?.debitColumn && preset?.creditColumn) {
+    debitCol = findColumn(columns, [preset.debitColumn]);
+    creditCol = findColumn(columns, [preset.creditColumn]);
+  } else {
+    amountCol = findColumn(columns, preset?.amountColumn ?? ['Amount', 'CAD$', 'Value']);
+  }
+  
+  if (!dateCol) {
+    errors.push({ row: 0, field: 'date', message: 'Could not identify date column', rawValue: columns.join(', ') });
+  }
+  if (!amountCol && !debitCol) {
+    errors.push({ row: 0, field: 'amount', message: 'Could not identify amount column', rawValue: columns.join(', ') });
+  }
+  
+  const transactions: BankTransaction[] = [];
+  const rows = parsed.data as Record<string, string>[];
+  
+  for (let i = 0; i < rows.length; i++) {
+    const row = rows[i];
+    const rowNum = i + 2;  // 1-indexed, after header
+    const rowWarnings: string[] = [];
+    
+    // Parse date with priority: explicit format > ISO > chrono-node fallback
+    const rawDate = dateCol ? row[dateCol]?.trim() ?? '' : '';
+    const parsedDate = parseDate(rawDate, preset?.dateFormat);
+    if (!parsedDate) {
+      errors.push({ row: rowNum, field: 'date', message: `Could not parse date: "${rawDate}"`, rawValue: rawDate });
+      continue;
+    }
+    // Use LOCAL date components to avoid timezone shifts
+    const dateStr = formatLocalDate(parsedDate);
+    
+    // Parse amount - convert to MILLIUNITS immediately
+    let amountMilliunits: number;
+    let rawAmount: string;
+    
+    if (amountCol) {
+      rawAmount = row[amountCol]?.trim() ?? '';
+      amountMilliunits = dollarStringToMilliunits(rawAmount);
+    } else if (debitCol && creditCol) {
+      const debit = row[debitCol]?.trim() ?? '';
+      const credit = row[creditCol]?.trim() ?? '';
+      rawAmount = debit || credit;
+      
+      const debitMilliunits = dollarStringToMilliunits(debit);
+      const creditMilliunits = dollarStringToMilliunits(credit);
+      
+      // Warn if both debit and credit have values (ambiguous)
+      if (Math.abs(debitMilliunits) > 0 && Math.abs(creditMilliunits) > 0) {
+        rowWarnings.push(`Both Debit (${debit}) and Credit (${credit}) have values - using Debit`);
+        warnings.push({ row: rowNum, message: rowWarnings[rowWarnings.length - 1] });
+      }
+      
+      if (Math.abs(debitMilliunits) > 0) {
+        amountMilliunits = -Math.abs(debitMilliunits);  // Debits are outflows (negative)
+      } else if (Math.abs(creditMilliunits) > 0) {
+        amountMilliunits = Math.abs(creditMilliunits);  // Credits are inflows (positive)
+      } else {
+        amountMilliunits = 0;
+      }
+      
+      // Warn if debit column contains negative value (unusual)
+      if (debitMilliunits < 0) {
+        rowWarnings.push(`Debit column contains negative value (${debit}) - treating as positive debit`);
+        warnings.push({ row: rowNum, message: rowWarnings[rowWarnings.length - 1] });
+      }
+    } else {
+      continue;  // Skip row if no amount columns
+    }
+    
+    if (!Number.isFinite(amountMilliunits)) {
+      errors.push({ row: rowNum, field: 'amount', message: `Invalid amount: "${rawAmount}"`, rawValue: rawAmount });
+      continue;
+    }
+    
+    // Apply amount inversion if needed
+    const multiplier = options.invertAmounts ? -1 : (preset?.amountMultiplier ?? 1);
+    amountMilliunits *= multiplier;
+    
+    // Parse description
+    const rawDesc = descCol ? row[descCol]?.trim() ?? '' : '';
+    
+    transactions.push({
+      id: randomUUID(),
+      date: dateStr,
+      amount: amountMilliunits,
+      payee: rawDesc || 'Unknown',
+      sourceRow: rowNum,
+      raw: {
+        date: rawDate,
+        amount: rawAmount,
+        description: rawDesc,
+      },
+      warnings: rowWarnings.length > 0 ? rowWarnings : undefined,
+    });
+  }
+  
+  return {
+    transactions,
+    errors,
+    warnings,
+    meta: {
+      detectedDelimiter: parsed.meta.delimiter,
+      detectedColumns: columns,
+      totalRows: rows.length,
+      validRows: transactions.length,
+      skippedRows: rows.length - transactions.length,
+    },
+  };
+}
+
+/**
+ * Parse date with priority:
+ * 1. ISO format (YYYY-MM-DD) - unambiguous
+ * 2. Explicit format hint from preset
+ * 3. chrono-node fallback (may be ambiguous for dates like 02/03/2025)
+ */
+function parseDate(raw: string, formatHint?: 'YMD' | 'MDY' | 'DMY'): Date | null {
+  if (!raw) return null;
+  
+  // 1. Try ISO format first (unambiguous)
+  const isoMatch = raw.match(/^(\d{4})-(\d{2})-(\d{2})/);
+  if (isoMatch) {
+    const [, year, month, day] = isoMatch;
+    return new Date(parseInt(year!), parseInt(month!) - 1, parseInt(day!));
+  }
+  
+  // 2. Try explicit format hint for ambiguous numeric dates
+  const numericMatch = raw.match(/^(\d{1,2})[\/-](\d{1,2})[\/-](\d{2,4})$/);
+  if (numericMatch && formatHint) {
+    const [, a, b, c] = numericMatch;
+    let year = parseInt(c!);
+    if (year < 100) year += 2000;  // 25 -> 2025
+    
+    let month: number, day: number;
+    switch (formatHint) {
+      case 'YMD':
+        month = parseInt(a!);
+        day = parseInt(b!);
+        break;
+      case 'MDY':  // US format: MM/DD/YYYY
+        month = parseInt(a!);
+        day = parseInt(b!);
+        break;
+      case 'DMY':  // European/UK format: DD/MM/YYYY
+        day = parseInt(a!);
+        month = parseInt(b!);
+        break;
+    }
+    
+    if (month >= 1 && month <= 12 && day >= 1 && day <= 31) {
+      return new Date(year, month - 1, day);
+    }
+  }
+  
+  // 3. Fallback to chrono-node (handles natural language, many formats)
+  // Note: chrono defaults to US (MDY) for ambiguous dates like 02/03/2025
+  return chrono.parseDate(raw);
+}
+
+/**
+ * Format Date to YYYY-MM-DD using LOCAL date components.
+ * 
+ * IMPORTANT: Do NOT use toISOString() as it converts to UTC,
+ * which can shift the date if the local time is before midnight UTC.
+ */
+function formatLocalDate(date: Date): string {
+  const year = date.getFullYear();
+  const month = String(date.getMonth() + 1).padStart(2, '0');
+  const day = String(date.getDate()).padStart(2, '0');
+  return `${year}-${month}-${day}`;
+}
+
+function findColumn(available: string[], candidates: string | string[]): string | null {
+  const candidateList = Array.isArray(candidates) ? candidates : [candidates];
+  
+  for (const candidate of candidateList) {
+    const lower = candidate.toLowerCase();
+    const found = available.find(col => col.toLowerCase() === lower);
+    if (found) return found;
+  }
+  
+  // Try partial match
+  for (const candidate of candidateList) {
+    const lower = candidate.toLowerCase();
+    const found = available.find(col => col.toLowerCase().includes(lower));
+    if (found) return found;
+  }
+  
+  return null;
+}
+
+function detectPreset(columns: string[]): BankPreset | undefined {
+  const colSet = new Set(columns.map(c => c.toLowerCase()));
+  
+  if (colSet.has('description 1') || colSet.has('account type')) {
+    return BANK_PRESETS['rbc'];
+  }
+  if (columns.some(c => c.toLowerCase().includes('cad$'))) {
+    return BANK_PRESETS['td'];
+  }
+  
+  return undefined;
+}
+
+/**
+ * Supported currency symbols:
+ *   $ (dollar - USD, CAD, AUD, etc.)
+ *   € (euro)
+ *   £ (pound)
+ *   ¥ (yen/yuan)
+ *   
+ * Also strips: CAD, USD, EUR, GBP (case-insensitive)
+ * 
+ * Number formats supported:
+ *   - Standard:  1234.56 or 1,234.56
+ *   - European:  1.234,56 (detected by pattern)
+ *   - Negative:  -123.45 or (123.45)
+ * 
+ * Returns: Amount in MILLIUNITS (integer, 1000 = $1.00)
+ */
+const CURRENCY_SYMBOLS = /[$€£¥]/g;
+const CURRENCY_CODES = /\b(CAD|USD|EUR|GBP)\b/gi;
+
+function dollarStringToMilliunits(str: string): number {
+  if (!str) return 0;
+  
+  let cleaned = str
+    .replace(CURRENCY_SYMBOLS, '')
+    .replace(CURRENCY_CODES, '')
+    .trim();
+  
+  // Handle parentheses as negative: (123.45) → -123.45
+  if (cleaned.startsWith('(') && cleaned.endsWith(')')) {
+    cleaned = '-' + cleaned.slice(1, -1);
+  }
+  
+  // Detect European format: 1.234,56 → 1234.56
+  if (/^-?\d{1,3}(\.\d{3})+,\d{2}$/.test(cleaned)) {
+    cleaned = cleaned.replace(/\./g, '').replace(',', '.');
+  }
+  
+  // Handle thousands separator: 1,234.56 → 1234.56
+  if (cleaned.includes('.')) {
+    cleaned = cleaned.replace(/,/g, '');
+  }
+  
+  const dollars = parseFloat(cleaned);
+  if (!Number.isFinite(dollars)) return 0;
+  
+  // Convert to milliunits: $1.00 → 1000
+  return Math.round(dollars * 1000);
+}
+```
+
+### 3.3 New Matching Algorithm
+
+**File:** `src/tools/reconciliation/matcher.ts`
+
+```typescript
+import fuzz from 'fuzzball';
+import type { BankTransaction, NormalizedYNABTransaction } from '../../types/reconciliation.js';
+
+export interface MatchCandidate {
+  ynabTransaction: NormalizedYNABTransaction;
+  scores: {
+    amount: number;      // 0-100
+    date: number;        // 0-100
+    payee: number;       // 0-100
+    combined: number;    // Weighted combination
+  };
+  matchReasons: string[];
+}
+
+export interface MatchResult {
+  bankTransaction: BankTransaction;
+  bestMatch: MatchCandidate | null;
+  candidates: MatchCandidate[];  // Top 3
+  confidence: 'high' | 'medium' | 'low' | 'none';
+  confidenceScore: number;
+}
+
+export interface MatchingConfig {
+  weights: {
+    amount: number;   // Recommended: 0.50
+    date: number;     // Recommended: 0.15
+    payee: number;    // Recommended: 0.35
+  };
+  
+  // Tolerances (in MILLIUNITS for amount)
+  amountToleranceMilliunits: number;  // Default: 10 (1 cent)
+  dateToleranceDays: number;          // Default: 7
+  
+  // Thresholds
+  autoMatchThreshold: number;      // Default: 85
+  suggestedMatchThreshold: number; // Default: 60
+  minimumCandidateScore: number;   // Default: 40
+  
+  // Bonuses for perfect matches
+  exactAmountBonus: number;        // Default: 10
+  exactDateBonus: number;          // Default: 5
+  exactPayeeBonus: number;         // Default: 10
+}
+
+export const DEFAULT_CONFIG: MatchingConfig = {
+  weights: {
+    amount: 0.50,
+    date: 0.15,
+    payee: 0.35,
+  },
+  amountToleranceMilliunits: 10,  // 1 cent
+  dateToleranceDays: 7,
+  autoMatchThreshold: 85,
+  suggestedMatchThreshold: 60,
+  minimumCandidateScore: 40,
+  exactAmountBonus: 10,
+  exactDateBonus: 5,
+  exactPayeeBonus: 10,
+};
+
+export function findMatches(
+  bankTransactions: BankTransaction[],
+  ynabTransactions: NormalizedYNABTransaction[],
+  config: MatchingConfig = DEFAULT_CONFIG
+): MatchResult[] {
+  const results: MatchResult[] = [];
+  const usedYnabIds = new Set<string>();
+  
+  for (const bankTxn of bankTransactions) {
+    const candidates = findCandidates(bankTxn, ynabTransactions, usedYnabIds, config);
+    
+    const bestMatch = candidates.length > 0 ? candidates[0] : null;
+    const confidenceScore = bestMatch?.scores.combined ?? 0;
+    
+    let confidence: MatchResult['confidence'];
+    if (confidenceScore >= config.autoMatchThreshold) {
+      confidence = 'high';
+      if (bestMatch) usedYnabIds.add(bestMatch.ynabTransaction.id);
+    } else if (confidenceScore >= config.suggestedMatchThreshold) {
+      confidence = 'medium';
+    } else if (confidenceScore >= config.minimumCandidateScore) {
+      confidence = 'low';
+    } else {
+      confidence = 'none';
+    }
+    
+    results.push({
+      bankTransaction: bankTxn,
+      bestMatch,
+      candidates: candidates.slice(0, 3),
+      confidence,
+      confidenceScore,
+    });
+  }
+  
+  return results;
+}
+
+function findCandidates(
+  bankTxn: BankTransaction,
+  ynabTransactions: NormalizedYNABTransaction[],
+  usedIds: Set<string>,
+  config: MatchingConfig
+): MatchCandidate[] {
+  const candidates: MatchCandidate[] = [];
+  
+  for (const ynabTxn of ynabTransactions) {
+    if (usedIds.has(ynabTxn.id)) continue;
+    
+    // Sign check - both must be same sign (or both zero)
+    const bankSign = Math.sign(bankTxn.amount);
+    const ynabSign = Math.sign(ynabTxn.amount);
+    if (bankSign !== ynabSign && bankSign !== 0 && ynabSign !== 0) {
+      continue;
+    }
+    
+    const scores = calculateScores(bankTxn, ynabTxn, config);
+    
+    if (scores.combined >= config.minimumCandidateScore) {
+      candidates.push({
+        ynabTransaction: ynabTxn,
+        scores,
+        matchReasons: buildMatchReasons(scores, config),
+      });
+    }
+  }
+  
+  candidates.sort((a, b) => b.scores.combined - a.scores.combined);
+  return candidates;
+}
+
+function calculateScores(
+  bankTxn: BankTransaction,
+  ynabTxn: NormalizedYNABTransaction,
+  config: MatchingConfig
+): MatchCandidate['scores'] {
+  // Amount score - now using INTEGER comparison (milliunits)
+  const amountDiff = Math.abs(bankTxn.amount - ynabTxn.amount);
+  let amountScore: number;
+  
+  if (amountDiff === 0) {
+    // Exact integer match - no floating point issues!
+    amountScore = 100;
+  } else if (amountDiff <= config.amountToleranceMilliunits) {
+    amountScore = 95;
+  } else if (amountDiff <= 1000) {  // Within $1
+    amountScore = 80 - (amountDiff / 1000 * 20);
+  } else {
+    amountScore = Math.max(0, 60 - (amountDiff / 1000 * 5));
+  }
+  
+  // Date score
+  const bankDate = new Date(bankTxn.date);
+  const ynabDate = new Date(ynabTxn.date);
+  const daysDiff = Math.abs(bankDate.getTime() - ynabDate.getTime()) / (1000 * 60 * 60 * 24);
+  let dateScore: number;
+  
+  if (daysDiff < 0.5) {
+    dateScore = 100;
+  } else if (daysDiff <= 1) {
+    dateScore = 95;
+  } else if (daysDiff <= config.dateToleranceDays) {
+    dateScore = 90 - ((daysDiff - 1) * (40 / config.dateToleranceDays));
+  } else {
+    dateScore = Math.max(0, 50 - ((daysDiff - config.dateToleranceDays) * 5));
+  }
+  
+  // Payee score using fuzzball
+  const payeeScore = calculatePayeeScore(bankTxn.payee, ynabTxn.payee);
+  
+  // Combined score with weights
+  let combined = 
+    (amountScore * config.weights.amount) +
+    (dateScore * config.weights.date) +
+    (payeeScore * config.weights.payee);
+  
+  // Apply bonuses
+  if (amountScore === 100) combined += config.exactAmountBonus;
+  if (dateScore === 100) combined += config.exactDateBonus;
+  if (payeeScore >= 95) combined += config.exactPayeeBonus;
+  
+  combined = Math.min(100, combined);
+  
+  return {
+    amount: Math.round(amountScore),
+    date: Math.round(dateScore),
+    payee: Math.round(payeeScore),
+    combined: Math.round(combined),
+  };
+}
+
+function calculatePayeeScore(bankPayee: string, ynabPayee: string | null): number {
+  if (!ynabPayee) return 30;
+  
+  const scores = [
+    fuzz.token_set_ratio(bankPayee, ynabPayee),
+    fuzz.token_sort_ratio(bankPayee, ynabPayee),
+    fuzz.partial_ratio(bankPayee, ynabPayee),
+    fuzz.WRatio(bankPayee, ynabPayee),
+  ];
+  
+  return Math.max(...scores);
+}
+
+function buildMatchReasons(scores: MatchCandidate['scores'], config: MatchingConfig): string[] {
+  const reasons: string[] = [];
+  
+  if (scores.amount === 100) {
+    reasons.push('Exact amount match');
+  } else if (scores.amount >= 95) {
+    reasons.push('Amount within tolerance');
+  }
+  
+  if (scores.date === 100) {
+    reasons.push('Same date');
+  } else if (scores.date >= 90) {
+    reasons.push('Date within 1-2 days');
+  } else if (scores.date >= 50) {
+    reasons.push(`Date within ${config.dateToleranceDays} days`);
+  }
+  
+  if (scores.payee >= 95) {
+    reasons.push('Payee exact match');
+  } else if (scores.payee >= 80) {
+    reasons.push('Payee highly similar');
+  } else if (scores.payee >= 60) {
+    reasons.push('Payee somewhat similar');
+  }
+  
+  return reasons;
+}
+```
+
+### 3.4 Integration Tests with Real CSV Data
+
+**File:** `src/__tests__/tools/reconciliation/csvParser.integration.test.ts`
+
+> **Note:** Tests follow repo convention: `src/__tests__/` with fixtures in `test-exports/csv/`
+
+```typescript
+import { describe, it, expect } from 'vitest';
+import { parseCSV } from '../../../tools/reconciliation/csvParser.js';
+import { findMatches, DEFAULT_CONFIG } from '../../../tools/reconciliation/matcher.js';
+import { normalizeYNABTransaction } from '../../../tools/reconciliation/ynabAdapter.js';
+
+describe('CSV Parser Integration Tests', () => {
+  describe('TD Bank CSV', () => {
+    const tdCSV = `Date,Description,Amount
+09/15/2025,SHELL STATION 1234 TORONTO ON,-45.23
+09/16/2025,AMZN MKTP CA*1A2B3C4,-127.99
+09/17/2025,PAYROLL DEPOSIT ABC CORP,2500.00`;
+
+    it('should parse TD CSV correctly', () => {
+      const result = parseCSV(tdCSV, { preset: 'td' });
+      
+      expect(result.errors).toHaveLength(0);
+      expect(result.transactions).toHaveLength(3);
+      expect(result.transactions[0].amount).toBe(-45230);  // Milliunits!
+      expect(result.transactions[0].payee).toBe('SHELL STATION 1234 TORONTO ON');
+      expect(result.transactions[0].date).toBe('2025-09-15');
+    });
+  });
+  
+  describe('RBC Debit/Credit CSV', () => {
+    const rbcCSV = `Transaction Date,Description 1,Debit,Credit
+2025-09-15,SHELL GAS,45.23,
+2025-09-16,TRANSFER FROM SAVINGS,,500.00`;
+
+    it('should parse RBC CSV with debit/credit columns', () => {
+      const result = parseCSV(rbcCSV, { preset: 'rbc' });
+      
+      expect(result.errors).toHaveLength(0);
+      expect(result.transactions).toHaveLength(2);
+      expect(result.transactions[0].amount).toBe(-45230);  // Debit = negative milliunits
+      expect(result.transactions[1].amount).toBe(500000);  // Credit = positive milliunits
+    });
+  });
+  
+  describe('Ambiguous Debit/Credit Warning', () => {
+    const ambiguousCSV = `Transaction Date,Description,Debit,Credit
+2025-09-15,WEIRD TXN,50.00,25.00`;
+
+    it('should warn when both debit and credit have values', () => {
+      const result = parseCSV(ambiguousCSV, { preset: 'rbc' });
+      
+      expect(result.warnings).toHaveLength(1);
+      expect(result.warnings[0].message).toContain('Both Debit');
+      expect(result.transactions[0].amount).toBe(-50000);  // Uses debit
+    });
+  });
+  
+  describe('European Number Format', () => {
+    const euroCSV = `Date,Amount,Description
+15/09/2025,"1.234,56",Big Purchase`;
+
+    it('should handle European number format', () => {
+      const result = parseCSV(euroCSV);
+      
+      expect(result.transactions[0].amount).toBe(1234560);  // 1234.56 in milliunits
+    });
+  });
+});
+
+describe('Matcher Integration Tests', () => {
+  const mockYNABTransactions = [
+    { id: 'y1', date: '2025-09-15', amount: -45230, payee_name: 'Shell', category_name: 'Gas', cleared: 'uncleared', approved: true },
+    { id: 'y2', date: '2025-09-17', amount: -127990, payee_name: 'Amazon', category_name: 'Shopping', cleared: 'uncleared', approved: true },
+  ].map(t => normalizeYNABTransaction(t as any));
+  
+  it('should achieve high confidence matches with exact integer comparison', () => {
+    const bankCSV = `Date,Description,Amount
+09/15/2025,SHELL STATION 1234,-45.23
+09/16/2025,AMZN MKTP CA*ABC123,-127.99`;
+
+    const parsed = parseCSV(bankCSV);
+    const matches = findMatches(parsed.transactions, mockYNABTransactions);
+    
+    // Shell: exact amount match (both -45230 milliunits)
+    expect(matches[0].confidence).toBe('high');
+    expect(matches[0].bestMatch?.scores.amount).toBe(100);
+    
+    // Amazon: exact amount match (both -127990 milliunits)
+    expect(matches[1].confidence).toBe('high');
+    expect(matches[1].bestMatch?.scores.amount).toBe(100);
+  });
+  
+  it('should use exact integer comparison (no float precision issues)', () => {
+    // Both are now integers - no floating point comparison needed!
+    const bankTxn = { 
+      id: 'b1', 
+      date: '2025-09-15', 
+      amount: -45230,  // Integer milliunits
+      payee: 'Shell',
+      sourceRow: 2,
+      raw: { date: '09/15/2025', amount: '-45.23', description: 'Shell' }
+    };
+    
+    const ynabTxn = {
+      id: 'y1',
+      date: '2025-09-15',
+      amount: -45230,  // Integer milliunits - direct from YNAB API
+      payee: 'Shell',
+      memo: null,
+      categoryName: 'Gas',
+      cleared: 'uncleared' as const,
+      approved: true,
+    };
+    
+    const matches = findMatches([bankTxn], [ynabTxn]);
+    // Exact match because integers compare exactly: -45230 === -45230
+    expect(matches[0].bestMatch?.scores.amount).toBe(100);
+  });
+});
+```
+
+---
+
+## Part 4: Diagnostic/Debug Mode
+
+Add diagnostic output to help debug matching issues. **Diagnostics should be returned even on failure/partial match.**
+
+```typescript
+export interface MatchDiagnostics {
+  csvParsing: {
+    detectedDelimiter: string;
+    detectedColumns: string[];
+    totalRows: number;
+    validRows: number;
+    errors: ParseError[];
+    warnings: ParseWarning[];
+  };
+  matchingDetails: Array<{
+    bankTxn: { date: string; amount: number; payee: string };
+    bestMatch: {
+      ynabTxn: { date: string; amount: number; payee: string | null };
+      scores: { amount: number; date: number; payee: number; combined: number };
+    } | null;
+    allCandidates: Array<{
+      ynabId: string;
+      scores: { amount: number; date: number; payee: number; combined: number };
+      rejectedBecause?: string;
+    }>;
+    confidence: 'high' | 'medium' | 'low' | 'none';
+  }>;
+  timing: {
+    parseMs: number;
+    matchMs: number;
+  };
+}
+
+// In reconcile_account schema:
+{
+  // ... existing params
+  include_diagnostics: z.boolean().optional().default(false),
+}
+
+// ALWAYS include diagnostics on error or low match rate
+const shouldIncludeDiagnostics = 
+  params.include_diagnostics || 
+  parseResult.errors.length > 0 ||
+  matches.filter(m => m.confidence === 'none').length > matches.length * 0.5;
+```
+
+---
+
+## Part 5: Migration Path
+
+### Phase 1: Foundation (Week 1)
+1. [x] Install new dependencies: `papaparse`, `fuzzball`, `chrono-node`, `dayjs`
+2. [x] Create unified types in `src/types/reconciliation.ts`
+3. [x] Create YNAB adapter in `src/tools/reconciliation/ynabAdapter.ts`
+4. [x] Create new CSV parser module (`src/tools/reconciliation/csvParser.ts`)
+5. [x] Create new matcher module (`src/tools/reconciliation/matcher.v2.ts`)
+6. [x] Add integration tests in `src/__tests__/tools/reconciliation/`
+
+### Phase 2: Integration (Week 2)
+1. [x] Update `analyzeReconciliation()` to use new parser and matcher
+2. [x] Update reconcile adapter for new response format
+3. [x] Add diagnostic mode (always on for errors)
+4. [x] Update existing tests to not mock the parser
+
+### Phase 3: Validation (Week 3)
+1. [x] Test against saved CSV exports from TD, RBC, Scotiabank, Wealthsimple
+   - *Note:* Verified against real-world TD (headerless) and Wealthsimple exports.
+   - *Feature Added:* `csvParser` now supports `header: false` and manual column mapping for headerless files (like TD).
+2. [ ] Compare match quality against current implementation
+3. [ ] Tune thresholds based on real-world data
+4. [ ] Document bank-specific quirks
+
+### Phase 4: Cleanup (Week 4)
+1. Remove old `compareTransactions/parser.ts` if no longer needed
+2. Remove duplicate BankTransaction type
+3. Update all remaining references
+4. Final documentation
+
+---
+
+## Part 6: Configuration Recommendations
+
+Based on research and the Midday.ai approach:
+
+| Parameter | Current | Recommended | Rationale |
+|-----------|---------|-------------|-----------|
+| `dateToleranceDays` | 2 | 7 | Banks often post 3-7 days late |
+| `amountToleranceMilliunits` | 10 | 10 | 1 cent tolerance |
+| `autoMatchThreshold` | 90 | 85 | More lenient with better algorithm |
+| `suggestedMatchThreshold` | 60 | 60 | Keep same |
+| Amount weight | 40% | 50% | Amount is most reliable signal |
+| Date weight | 40% | 15% | Dates are unreliable |
+| Payee weight | 20% | 35% | With fuzzball, payee matching is much better |
+
+### User-Tunable vs Hard-Coded
+
+| Parameter | User-Tunable? | Exposed Via | Default |
+|-----------|---------------|-------------|----------|
+| `date_tolerance_days` | ✅ Yes | Tool schema | 7 |
+| `amount_tolerance_cents` | ✅ Yes | Tool schema | 5 |
+| `confidence_threshold` | ✅ Yes | Tool schema | 0.85 |
+| `auto_create_transactions` | ✅ Yes | Tool schema | false |
+| `auto_update_cleared_status` | ✅ Yes | Tool schema | false |
+| `dry_run` | ✅ Yes | Tool schema | false |
+| `csv_format.preset` | ✅ Yes | Tool schema | auto-detect |
+| `csv_format.overrides.*` | ✅ Yes | Tool schema | none |
+| Scoring weights | ❌ No | Hard-coded | 50/15/35 |
+| Minimum candidate score | ❌ No | Hard-coded | 40 |
+| Guardrail thresholds | ❌ No | Hard-coded | See Part 7c |
+
+**Rationale:** Tolerances and automation toggles are user-visible because they're intuitive ("how many days?"). Scoring weights and guardrails are expert-level tuning that could cause harm if misconfigured—keep these as sensible defaults that "just work."
+
+---
+
+## Part 7: Future Enhancements
+
+1. **Merchant Learning:** Cache successful payee mappings ("AMZN MKTP" → "Amazon") per user/budget
+2. **Adaptive Thresholds:** Learn from user confirmations/rejections like Midday.ai
+3. **Vector Embeddings:** For truly semantic matching (requires OpenAI/embedding API)
+4. **Split Transaction Detection:** Detect when one bank transaction = multiple YNAB transactions
+5. **Recurring Transaction Patterns:** Use historical patterns to boost confidence
+
+---
+
+## Part 7b: Performance, Scale & Dependencies
+
+### Dependency Impact Analysis
+
+| Library | Minified Size | Tree-shakeable | Cold-start Impact | Justification |
+|---------|---------------|----------------|-------------------|---------------|
+| **PapaParse** | ~50 kB | Partial | Low (~20ms) | Handles malformed CSVs that csv-parse chokes on |
+| **fuzzball** | ~15 kB | Yes | Minimal | 10x better merchant matching than Levenshtein |
+| **chrono-node** | ~80 kB | No | Moderate (~50ms) | Fallback only; primary parsing uses explicit formats |
+| **dayjs** | ~2 kB | Yes | Negligible | Only for formatting; could be removed |
+
+**Current baseline:** `csv-parse` (~30 kB) + `date-fns` (~30 kB) = ~60 kB  
+**Proposed total:** ~150 kB (+90 kB, ~150% increase)
+
+**Mitigation:**
+- `chrono-node` is used as fallback only; consider lazy `import()` if cold-start becomes an issue
+- For MCP servers (Node.js), bundle size matters less than browser apps
+- Cold-start measured at <100ms additional on M1 Mac
+
+### Algorithmic Complexity
+
+| Operation | Complexity | Notes |
+|-----------|------------|-------|
+| CSV parsing | O(N) | N = rows; PapaParse streams large files |
+| Basic matching | O(N × M) | N = bank txns, M = YNAB txns |
+| Combination matching | O(N × M²) or O(N × M³) | 2-way and 3-way combinations |
+| Payee fuzzy matching | O(L²) per pair | L = string length; fuzzball is optimised |
+
+### Scale Limits & Recommendations
+
+| CSV Size | Expected Behaviour | Recommendation |
+|----------|-------------------|----------------|
+| <100 txns | <500ms, full features | Default mode |
+| 100-500 txns | <2s, full features | Default mode |
+| 500-1000 txns | 2-10s, disable 3-way combos | Set `max_combination_size: 2` |
+| >1000 txns | May timeout | Chunk by month, process sequentially |
+
+### Optimisation Strategies (Future)
+
+1. **Amount bucketing:** Index YNAB transactions by amount (±tolerance) for O(1) candidate lookup
+2. **Date windowing:** Only compare transactions within ±14 days
+3. **Early termination:** Stop searching once confidence ≥98%
+4. **Streaming:** Parse CSV in chunks for memory efficiency on huge files
+
+---
+
+## Part 7c: Matching Guardrails & Failure Modes
+
+### Hard Guardrails (Never Auto-Match)
+
+Auto-matching is **disabled** when:
+
+| Condition | Rationale |
+|-----------|-----------|
+| Amount score <80 | Amount is the most reliable signal; fuzzy amounts are dangerous |
+| Date gap >14 days | Even with bank delays, 2+ weeks is suspicious |
+| Multiple candidates with score within 5 points | Ambiguous; surface for human review |
+| Payee score <40 AND date score <60 | Neither secondary signal is strong enough |
+| Transaction flagged with warnings | Parser detected ambiguity (e.g., both debit/credit populated) |
+
+### Known Failure Modes
+
+| Failure Mode | Example | Mitigation |
+|--------------|---------|------------|
+| **Similar merchants** | Starbucks #1234 vs #5678 | Require exact amount + date ≤1 day for coffee shops |
+| **Recurring subscriptions** | Netflix $15.99 every month | Use date as primary discriminator when amounts match |
+| **Refunds** | -$50.00 refund vs original +$50.00 charge | Sign check prevents cross-matching |
+| **Split transactions** | $100 bank = $60 + $40 YNAB | Combination matching handles this |
+| **Merchant name drift** | "AMZN" vs "Amazon.com" vs "Amazon Prime" | Payee normalisation + token_set_ratio |
+| **Duplicate entries** | Same amount/date/payee in YNAB | Prefer uncleared over cleared; flag for review |
+
+### Tie-Breaking Rules
+
+When multiple YNAB candidates have identical scores:
+
+1. Prefer `uncleared` over `cleared` (expecting confirmation)
+2. Prefer closer date proximity
+3. Prefer higher payee similarity
+4. If still tied, surface all candidates for human review
+
+### Confidence Tier Behaviour
+
+| Tier | Score Range | Auto-Action | User Prompt |
+|------|-------------|-------------|-------------|
+| `high` | ≥85 | Mark cleared, update date if needed | None (unless in dry-run) |
+| `medium` | 60-84 | None | "Review suggested match" |
+| `low` | 40-59 | None | "Possible match, low confidence" |
+| `none` | <40 | None | "No match found - add new?" |
+
+---
+
+## Part 7d: Diagnostics Behaviour & Privacy
+
+### Diagnostic Output Locations
+
+| Context | Output Location | Verbosity |
+|---------|-----------------|-----------|
+| MCP response (success) | `structured_data.diagnostics` | Minimal (counts only) |
+| MCP response (errors/low match) | `structured_data.diagnostics` | Full (per-transaction details) |
+| Server logs | `stdout` via structured logging | Configurable via `LOG_LEVEL` |
+| Debug files | `test-results/reconciliation/` | Full (for test runs only) |
+
+### When Diagnostics Are Included
+
+```typescript
+const includeDiagnostics = 
+  params.include_diagnostics ||           // Explicitly requested
+  parseResult.errors.length > 0 ||        // CSV parsing had errors
+  matchRate < 0.5 ||                       // Less than 50% matched
+  matches.some(m => m.confidence === 'none' && m.bankTransaction.amount > 10000);  // Large unmatched txn
+```
+
+### Privacy Considerations
+
+| Field | In MCP Response | In Logs | In Test Artifacts |
+|-------|-----------------|---------|-------------------|
+| Transaction amounts | ✅ Full | ✅ Full | ✅ Full |
+| Transaction dates | ✅ Full | ✅ Full | ✅ Full |
+| Payee names | ✅ Full | ⚠️ Truncated (first 20 chars) | ✅ Full |
+| Memos | ✅ Full | ❌ Redacted | ⚠️ Hashed |
+| Account IDs | ✅ Full | ✅ Full | ✅ Full |
+| Raw CSV rows | ❌ Not included | ❌ Not included | ✅ Full |
+
+**Rationale:** MCP responses go directly to the user who owns the data. Logs may be aggregated for debugging; truncate PII. Test artifacts are stored locally.
+
+### Log Redaction Example
+
+```typescript
+// In production logs
+logger.info('Match found', {
+  bankTxn: {
+    date: '2025-09-15',
+    amount: -45230,
+    payee: 'SHELL STATION 12...',  // Truncated
+  },
+  confidence: 'high',
+  score: 92,
+});
+```
+
+---
+
+## Part 7e: Bank Presets Evolution & Overrides
+
+### Preset Versioning
+
+Bank CSV formats change. Presets are versioned:
+
+```typescript
+export const BANK_PRESETS: Record<string, BankPreset> = {
+  'td:2024': { /* current TD format */ },
+  'td:2023': { /* older TD format */ },
+  'td': { /* alias to latest: 'td:2024' */ },
+};
+```
+
+### User Override Mechanism
+
+Users can override presets via tool parameters without code changes:
+
+```typescript
+// In reconcile_account call
+{
+  csv_format: {
+    preset: 'td',  // Start with TD preset
+    overrides: {
+      date_column: 'Posted Date',  // Override specific field
+      date_format: 'DMY',          // My export uses DD/MM/YYYY
+    }
+  }
+}
+```
+
+Overrides are merged with preset defaults:
+
+```typescript
+const effectiveFormat = {
+  ...BANK_PRESETS[params.csv_format.preset],
+  ...params.csv_format.overrides,
+};
+```
+
+### Adding/Updating Presets
+
+1. **Collect samples:** Get 3+ CSV exports from the bank (different date ranges)
+2. **Create fixture:** Add to `test-exports/csv/{bank}/` with README noting export date
+3. **Write test:** Add integration test in `csvParser.integration.test.ts`
+4. **Define preset:** Add to `BANK_PRESETS` with version suffix
+5. **Verify:** Run `npm run test:integration:reconciliation`
+
+### Preset Testing Matrix
+
+CI runs all presets against their fixtures:
+
+```yaml
+# .github/workflows/test.yml
+test-bank-presets:
+  strategy:
+    matrix:
+      bank: [td, rbc, scotiabank, tangerine, wealthsimple, cibc, bmo]
+  steps:
+    - run: npm run test:preset -- ${{ matrix.bank }}
+```
+
+### Deprecation Policy
+
+- Old preset versions kept for 12 months after new version added
+- Deprecated presets log a warning but continue to work
+- Breaking changes (removed presets) only in major versions
+
+---
+
+## Part 8: Design Decisions & Rationale
+
+### Why Milliunits (Integers) Instead of Dollars (Floats)?
+
+**This is the most important architectural decision in the redesign.**
+
+The original plan used dollars (floats), requiring tolerance-based comparison everywhere:
+```typescript
+// Old approach (floats) - error-prone
+if (Math.abs(bankTxn.amount - ynabTxn.amount) < 0.001) { ... }
+```
+
+The new approach uses milliunits (integers), enabling exact comparison:
+```typescript
+// New approach (integers) - bulletproof
+if (bankTxn.amount === ynabTxn.amount) { ... }
+```
+
+Benefits:
+- **Eliminates floating-point precision bugs** - No more `45.23 !== 45.230000000001`
+- **Matches YNAB's native format** - YNAB API uses milliunits, so no conversion needed for YNAB transactions
+- **Single conversion point** - Only the CSV parser converts dollars→milliunits
+- **Simpler matcher logic** - `===` instead of `Math.abs(...) < epsilon`
+
+### Why Date Format Hints in Bank Presets?
+
+chrono-node is powerful but can misparse ambiguous dates like `02/03/2025`:
+- US interpretation: February 3rd
+- European interpretation: March 2nd
+
+Bank presets include a `dateFormat` hint ('MDY', 'DMY', 'YMD') that we try BEFORE falling back to chrono-node.
+
+Priority:
+1. ISO format `YYYY-MM-DD` (unambiguous)
+2. Preset's format hint (for ambiguous numeric dates)
+3. chrono-node fallback (for natural language, weird formats)
+
+### Why Timezone-Safe Date Formatting?
+
+`toISOString()` converts to UTC, which can shift the date:
+```typescript
+// WRONG - can shift date by timezone
+const dateStr = parsedDate.toISOString().split('T')[0];
+
+// RIGHT - uses local date components
+const dateStr = `${date.getFullYear()}-${...}`;
+```
+
+### Why Decouple YNAB Types?
+
+The `NormalizedYNABTransaction` interface in `src/types/reconciliation.ts` intentionally does NOT import from the YNAB SDK. This:
+- Keeps the reconciliation core testable without SDK mocks
+- Allows the types file to be shared without pulling in SDK dependencies
+- Makes it easier to swap adapters if YNAB API changes
+
+The adapter in `src/tools/reconciliation/ynabAdapter.ts` is the single point of contact with the SDK.
+
+### Test File Location Convention
+
+Tests live in `src/__tests__/` mirroring the source structure:
+```
+src/tools/reconciliation/csvParser.ts
+  → src/__tests__/tools/reconciliation/csvParser.test.ts
+  → src/__tests__/tools/reconciliation/csvParser.integration.test.ts
+```
+
+CSV fixtures go in `test-exports/csv/` following existing repo conventions.
+
+---
+
+## Appendix A: Library Comparison Summary
+
+| Library | Purpose | Size | Key Feature |
+|---------|---------|------|-------------|
+| **PapaParse** | CSV parsing | 260 kB | Auto-detect delimiters, malformed CSV handling |
+| **fuzzball** | Fuzzy matching | 15 kB | token_set_ratio for merchant names |
+| **chrono-node** | Date parsing | 20 kB | Natural language dates, many formats |
+| **dayjs** | Date formatting | 2 kB | Lightweight date manipulation |
+
+## Appendix B: Test CSV Fixtures
+
+Create `test-exports/csv/` with sample exports from:
+- TD Canada Trust
+- RBC Royal Bank
+- Scotiabank
+- Wealthsimple Cash
+- Tangerine
+- CIBC
+- BMO
+
+Each fixture should include edge cases:
+- Transactions with commas in description
+- European date formats (DD/MM/YYYY)
+- Negative amounts in parentheses
+- Multi-line descriptions
+- Currency symbols ($, €, £, CAD, USD)
+- Missing fields
+- Ambiguous dates (02/03/2025)
+- Both debit and credit columns populated
+
+## Appendix C: Reference Materials
+
+### Research Sources
+1. **Midday.ai Reconciliation Engine** - <https://midday.ai/updates/automatic-reconciliation-engine/>
+   - Open source: <https://github.com/midday-ai/midday>
+   - Uses vector embeddings + multi-dimensional scoring
+   - Key insight: 50% amount, 35% semantic, 10% currency, 5% date
+
+2. **CSV Parser Comparison** - <https://www.oneschema.co/blog/top-5-javascript-csv-parsers>
+   - PapaParse: Best for malformed CSVs, auto-detect
+   - csv-parser: Fastest for large files
+   - fast-csv: Smallest footprint
+
+3. **Fuzzball (TheFuzz port)** - <https://www.npmjs.com/package/fuzzball>
+   - token_set_ratio: Best for merchant name matching
+   - Handles word order variations
+   - Built-in normalization
+
+4. **chrono-node** - <https://www.npmjs.com/package/chrono-node>
+   - Parses virtually any date format
+   - Natural language support