alt Hacker NewsHave you ever entered your routing+account number into HR software for direct deposit? Doesn't that qualify as handing a third party essentially the same access as Plaid gets? I think bank accounts are generally more accessible in the modern era, it's just a risk that you take.
Of course, you're not obligated to use Plaid but I do find the concerns around this quite strange since you're likely exposing account information already.
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The same info is also on checks, and there's an established story around fraud there -- if I didn't authorize an ACH withdrawal then my bank is legally required to make me whole. If I hand over my username+password to a third party, I'm on my own.
Also, the routing+account numbers just let them deposit/withdraw money, not snoop on all my transactions and harvest my data...
With plaid they get access to all of your account numbers.
HR just sees a single savings account that I strictly use for direct deposit. They don’t see my actual savings account or my other purpose-specific checking accounts.
Whenever I have seen the Plaid integration it will also ask permission to your transactions. HR software won't get those when I provide it my account & routing numbers.
routing+account numbers are not that sensitive. that's been API for how we transact money since pre-historic times. plaid gets access to your online account with access personal data, security details, documents, transactions, statements, write-access etc.
It’s roughly the difference between giving somebody your phone number and letting them eavesdrop on every single call.
plaid asks for your bank username and password not just your routing + account
Generally no. Plaid access generally includes whatever name you put on the account, as well as transaction history.
Plaid wants you to enter your bank username-password into their form. If it was just routing+account it would be truly no different than other bank connection methods.