On Plaid’s website Citi, American Express, and others are listed as investors. It appears that banks aren’t against this bad practice, and are, in some cases, actually encouraging it. This makes me think that I might be missing something. Maybe Plaid has some special access to banking systems and it isn’t as bad as it seems.

Jan 25, 2019 · Plaid technically yes, but they are safe. What's not safe (Imho) that there is a possibility that someone will hack into Plaid in the future. For the sake of this question I assume, that Plaid itself is safe (even so, they will have my password only for 5min).

May 1, 2024 · Some scenarios I have found online where Plaid might still have access include: Token refresh, cached data, and re-authentication, like if you re-auth with Plaid using your new credentials. Again, it really depends upon a number of factors so it’s quite hard to say.

Aug 6, 2017 · Is this feature limited to a few selected banks? If so, I can imagine that Venmo may have passed a special agreement with them and may use your login and password only to obtain a ticket, and that only this tickets gets stored in the database, not your bank credentials (but this is just guessing, in any way they should never have to ask you for your bank password, this …

@TimX: yes, but. 1. Even with authorization the payment can be canceled by the account owner without giving any reason within 2 months of the payment, no questions asked (you sign with your bank that it is your duty to check your account statement and that it is considered approved if you do not reject it within so many weeks after they provide it).

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Jan 23, 2025 · The site then mocks up my bank's login page, and tells me to enter the bank login credentials (yeah I'm not even vagueing, this is about the atrocity that is Plaid). If I follow good security practice and never give my credentials to any third-party app/site, I can't use this.

Feb 10, 2016 · If the request to the 3rd party API is through your server, then store the access token in the database tied to the user, encrypted with a key that is stored as an environment variable.

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Feb 12, 2020 · Joint bank accounts don't work that way. Each user have their own password and user id and even debit/credit card linked to the account if they exist.