Complete Guide On How Plaid Bank Verification Works and How To Link Your Account
A Plaid bank verification it’s common when applying for a business loan.
This easy-to-understand guide about Plaid tells you how it works, why it is safe, its security features, and what banks support it. You can also review step-by-step instructions on linking Plaid to your bank account.
What Is Plaid?
Plaid is a technology platform that allows borrowers and lenders to reliably connect co-founded in May 2013 by William Hockney and Zach Perrit.
In addition, important financial apps and financial institutions use it.
According to CNBC, Plaid reported that its customer base doubled from 2017 to 2018, averaging roughly 20 million consumer accounts.
How does Plaid connect to banks?
Nowadays, lenders and borrowers partner together online without meeting face to face. This requires customers to share financial information remotely, which can be stressful.
But with Plaid, you decide who receives your data and for what length of time. Moreover, Paid doesn’t sell or share your information with anyone unless you authorize them to do so.
Once you sign up to use the Plaid app, you select your bank or credit union from a list of over 11,000 institutions. Then, you set up your private login and password information.
The connection between your bank and the Plaid app is secure. The tool encrypts the data each time and only shares the specific data the lender requires, not all your information.
To further safeguard your information and prevent fraud, Plaid collects information to verify your identity.
What Is Plaid Bank Verification?
Financial institutions use Plaid to view your financial data through your bank accounts.
In a bank verification, these institutions will be able to see only information related to:
- Account balances and retrieve up to 24 months of transactions. Plaid bank linking is easy and secure.
- You can receive a better customer experience since financial services are simple.
This technology allows you to save time because there’s no need to gather financial data, send documents, or call your bank representative to authorize them to share your financial information.
The Financial Industry Regulatory Authority (FINRA) has certified Plaid online banking for its high-security standards.
If you are contemplating applying for a loan at this time, Camino Financial is your best ally.
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Where Financial Institutions Use Plaid
There are two cases when a financial institution can ask you to use Plaid’s systems; for example:
- When applying for a loan or direct deposit, it is essential to ensure that your bank account information is accurate.
Plaid connects you to a bank allowing you to do this quickly and easily.
When you provide your bank account information through the Plaid system, this service will check that the information matches your file with your bank.
What is the Plaid Bank Transfer?
It’s a sew service offered by Plaid that is still in Beta. It enables lenders to make bank-to-bank transfers and disburse loan proceeds from one account to another.
Typical transfer types include ACH, same-day ACH, and wire transfers.
A bonus feature called Payment Service allows all parties involved to see, in advance, whether the service will post the transfer.
Plaid’s transfer service is more flexible than traditional slow bank-to-bank transfers.
Customers can choose from several payment types.
The system’s integration tools perform in real-time to ensure successful transfers.
Plaid’s transfer system moves money faster by reducing risks and transferring funds seamlessly.
Is Plaid Safe to Transfer Money?
The Plaid system with built-in safety features protects your valuable information.
The following features combine to keep your data safe during transmission:
- Advanced Encryption Standard
- Transport Layer Security
- multi-factor authentication
- cloud infrastructure technologies
- continuous security monitoring
How Long Does Plaid Take To Transfer Money?
On average, it takes six business days to process an online transfer.
Along with Plaid’s security measures, it uses an authorization engine. This helps cut down on delays, promoting quicker settlements and reducing possible transfer holds.
How Safe Is PLAID?
The PLAID verification uses really high safety measures when handling private information are high.
So, PLAID is 100% safe. You can rest assured that at Camino Financial, we only use bank technology when processing loans.
Is Plaid Safe to Use? How It Does Work:
The Plaid bank verifications remain secure due to the platform hiring third-party code reviewers and independent auditors.
Plaid requires a key authorization to verify the authenticity of a financial institution and has embedded Cryptology to validate authenticity further.
Plaid adheres to strict protocols and uses encrypted tunnel technology. They conduct routine tests to make sure their operations remain effective.
Additionally, a bug bounty program is in place to follow up and solve any security issues.
Just like Camino Financial, Plaid takes your security seriously.
Plaid Supported Banks List
Here is a list of Plaid supported banks if you need to link your bank account to allow the platform access to your financial information:
“Plaid supports over 11,500 institutions across North America and Europe”.
Financial Institutions and Banks supported by Plaid | ||
Camino Financial Coast Capital Savings Scotiabank Assante – InvestorOnline Bayview Credit Union Cambrian Credit Union – Cambrian Online Newfoundland & Labrador Credit Union Prospera Credit Union – Prospera Credit Union Discover TD Bank PNC Bank SunTrust Bank US Bank | Access Credit Union – Online Banking CIBC Choice Savings and Credit Union – Personal Online Banking Assiniboine Credit Union – Online Banking BlueShore Financial – Online Banking Canaccord Capital North Pea Union Qtrade Investor Quinte First Credit Union – Online Banking BB&T Bank Huntington Bank KeyBank Citi Achadia Bank | Capital One – Credit Cards Canada RBC Royal Bank Alterna Bank – Online Banking Bay Credit Union – Online Banking BMO – Fund Account Access Nelson & District Credit Union – Nelson & District Credit Union President’s Choice Financial QuesTrade – Client Portal Regions Bank M&T Bank Regions Bank Santander Bank KeyBank Discover American Express |
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How To Set Up a Plaid Account and Link Bank Account
In the following steps, you will be able to understand how to use Plaid:
Open the Camino Financial Link You’ll Receive
To start your bank verification, click the “Continue” button.
Closely Review Your Terms
Click the “Verify my bank account” button if you like your terms.
Select From the List of Financial Institutions
Select the financial institution in which you hold your primary business accounts. If you cannot see it on the list, type your Bank Name in the “Search” field, and your bank should appear.
Log Into Your Bank
The platform will redirect to your financial institution’s website. Enter your online bank credentials, account number, and routing number to continue the Plaid bank verification.
Plaid offers a secure connection to open banking accounts.
Please ensure you are using a personal computer/mobile.
If the process asks you to input a token, your financial institution must send it and send it to you in text messages directly to the phone number you have provided at your bank. This will usually occur if you have multi-factor authentication set up with your financial institution.
Click the blue “Submit” button.
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You’re Linked
Once you link your account, you will receive the below confirmation. Next, you must click the “Continue” button. Do not click the “x” in the top right and/or close the window.
Confirm and Wait for the Loan Decision
The platform will redirect you to the “Complete” page to confirm you have linked your account correctly connected. Please ensure you have reached this page before you close your window. If so, you’ve completed your Plaid manual verification!
Your account is now successfully linked. Congratulations!
Your file is now in Underwriting. We will have a final decision within 48-72 hours. A credit agent may call you to have a 5-minute conversation about your business. Feel free to call us should you have any questions or face any technical difficulties.
Keep reading: How open bank an account online for free
Camino uses PLAID Bank Accounts Verification To Ensure Your Data Stays Safe
Along with helping your business prosper by gaining access to needed funds, we can guarantee that your personal and business information is never compromised.
Using Plaid as part of our loan process ensures that your data stays secure and confidential.
By using the PLAID, we can offer competitive loan terms and rates. We can examine your business’s cash flows to help determine your best course of action to achieve financial health.
We use other bank technology to keep your information secure and protect you from identity fraud throughout the loan process.
That’s because you are our top priority from beginning to end.
We take extreme measures to access sensitive information securely and privately. For that reason, we can confidently recommend using PLAID.
Now that you know how secure our process is, you know that we have your best interests at heart.
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Frequently Asked Questions About Plaid |
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What do I do if I can’t find my bank?Plaid works with over 10,000 banking institutions. If you’re having trouble locating your financial institution, contact your bank or us directly. We can troubleshoot any problems you may encounter and assist you if necessary. |
What types of information can Plaid provide lenders?Since we need to verify your identity, Plaid confirms your name, phone number, email, and physical address. By gaining digital access to bank transactions, we can verify your income, assets, balances, and a history of transactions. Furthermore, we can review credit and loan accounts, balances owed, transaction history, and interest rates. We can identify asset details, quantity, and cost basis if you have investment accounts such as retirement and brokerage. |
Does Plaid need an account and routing numbers?Plaid doesn’t process transactions. Instead, its authorization process uses ACH authentication to protect a customer’s account and routing numbers. This eliminates the need to make micro deposits which involve waiting for small trial deposits to post. That way, we can transfer the money immediately. |
How long does it take Plaid to verify a bank account?Plaid starts checking your information once it connects to your bank account and routing number information. The system verifies your bank credentials almost instantly. |
Why is Plaid asking for my bank password?Providing your bank password authorizes Plaid to access your banking account information so a lender can make deposits directly into your account. Your bank’s credentials enable Plaid to obtain information from your financial institution. |
How does Plaid work?Plaid works as an intermediate between banks and financial institutions or apps that need access to bank information. It offers a standardized API that allows banks to integrate their platforms without the need to build custom apps. Plaid uses end-to-end encryption to share personal and banking information in a secure way. |
What happens if my bank account is not listed?If your bank account is not listed in Plaid, you will need to enter your bank account information into the app manually. To do this, open the app, fill out your Plaid bank credentials, and tap on the Menu icon in the top-left corner of the screen. Then, select Settings and scroll down to the Bank Accounts section. Tap on Add a Bank Account and enter all of the required information. |
How long does Plaid take to verify?Plaid typically takes 1-2 business days to verify an account. This timeframe may be extended if we are unable to verify your identity or if you have requested a large number of transactions. |
What banks work with Plaid?Plaid works with a number of banks, including JPMorgan Chase, Bank of America, Wells Fargo, and more. To see a full list of partners, please visit their website. |
How long does plaid take to transfer money?It depends on the type of plaid transfer you are using. Plaid offers several types of electronic funds transfers, including Same Day ACH, next-day ACH, and three-day ACH. The time it takes for the money to move from one account to another will vary depending on which type of transfer you select. |
What if Plaid bank verification is not working?If you’re having trouble with bank verification through Plaid, you can try a few things. First, ensure that the bank account you’re trying to verify is selected in Plaid’s settings. Then, try reloading the page. If that doesn’t work, try logging out and then back in again. |
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