Breaking Down Plaid
03/24/2022 | Archive
Nowadays, Plaid is more than a pattern. But, how does it play into your financial accounts and payment apps, and is it even safe to use? Let’s break it down.
What is Plaid?
Plaid is a third-party fintech company that facilitates the sharing of information between your financial account and the financial service you are using. Some of the most common include Cash App, Zelle, Robinhood, Truebill and Square Cash. Plaid uses the established connection to your bank account to pull the data your financial applications need while still protecting your sensitive information.
How does Plaid work?
Plaid takes your account information, encrypts it, and then gives it to apps like Zelle and Cashapp so you can easily make transactions or view account information. Maybe you want to get into the cryptocurrency market and set up a Robinhood account to manage your investments. You’ll be asked to select your financial institution from a Plaid-provided list, log in and select which information to share. Once you’ve completed these simple steps, you’ll be able to find Apple as your linked account within your favorite apps. Plaid will handle the sharing of information using encryption and two-factor authentication.
Is Plaid safe?
Plaid takes the security of their customers’ data very seriously. They use advanced encryption protocols and follow security best practices to ensure your information remains safe. The Plaid Trust and Safety Page details the security measures they take:
- Best-in-class data encryption
- Multi-factor authentication
- Cloud infrastructure
- Robust 24/7 monitoring
- Third-party security testing.
Plaid does not sell or rent your data to outside companies, and they won’t share data without your permission. Use Plaid Portal to manage your account connections, view connected accounts, delete accounts or delete data from Plaid.
Always verify the URL when sharing secure information and remember to practice standard online safety measures. Visit our Fraud Prevention Center to learn more.
Apple FCU and Plaid
Did you know that you can link your Apple account to your favorite financial apps? It’s easy to do: while inside the app of your choice, search for Apple Federal Credit Union and then follow the prompts to link your account.