Plaid helps merchants onboard more efficiently by streamlining the verification process for financial information. Instead of manual entry or file uploads, Plaid enables a smoother onboarding experience by automating the verification of bank account details, income, and transaction history. This not only reduces friction in the onboarding process but also enhances accuracy and security. Overall, Plaid integration simplifies the verification of financial information, making it more efficient for merchants and improving the overall user experience.
Plaid supports over 12,000 financial institutions and is used by some of the largest brands in the US, including:
<aside> 💡 Note: Plaid is only supported for merchants onboarding through Adyen- Stripe merchants will be unaffected by this update.
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This integration affects only US-Based merchants onboarding through Adyen, and focuses specifically on bank verification. The process for verifying identities and business details is not affected by this change. Merchants in Canada and other countries will operate like normal through the existing process.
For merchants outside the United States, we use a tool called GIACT which provides bank verification services primarily for those operating internationally. Historically, we’ve seen the biggest issues around bank verification for smaller credit unions and banks within the US which GIACT does not have great coverage for. Plaid specializes in the US and includes smaller institutions other services may not typically service. Supporting both services should give us the widest range of automatic bank verification.
When a merchant nears the end of the onboarding application, it asks them to add their bank details for payouts. With Plaid, this process is streamlined by having the merchant search for, and log into, their bank account.
The merchant is presented with two options:
This process prompts the user to search for their bank. Once found, the bank’s logo can be clicked on, which will open a new secure window from their bank asking for the user’s username and password. If Two-Factor-Authentication (2FA) is turned on then it will require a PIN to be entered before proceeding.
Once fully logged in, the window will display a list of the accounts associated with that user’s bank credentials. Whichever account the user selects will be the one funds are deposited into.
Once the account is selected, it will ask the user to agree to share data with our financial partners and to the Terms and Conditions. All terms must be agreed to before proceeding.
Then the bank account is verified instantaneously!
<aside> 💡 Note: Any data shared here is PCI Level 1 secured and is ONLY collected to verify the bank account is legitimate. It will not be used for any other purposes.
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