Venmo is one of the most popular money transfer apps in the United States, with millions of users across the nation. Venmo allows people to link their bank accounts and quickly send money to friends and family.
Currently, a service that is commonly associated with money transfer apps is Plaid. This service links your financial institution to third-party apps. But you may wonder: does Venmo use Plaid? This article will tell you all you need to know, so keep reading!
Does Venmo Use Plaid in 2023?
Venmo does use Plaid, a service that securely links financial institutions to third-party apps and websites in 2023. Plaid is used by Venmo to verify users’ bank accounts. When you select instant bank verification on Venmo, you’ll be asked to provide your bank credentials so that Plaid can check your bank account to make sure it’s functional.
Many people have questions and concerns regarding Plaid and how it’s used on Venmo, so keep reading for some important information!
Why Is Venmo Using Plaid Now?
Venmo uses Plaid for instant bank verification. When you link your bank account to Venmo, you will be asked to choose a method of verification so Venmo can make sure it’s in working order.
If you select instant verification, you will be directed to Plaid and asked for your bank credentials in order for Plaid to verify your bank.
Currently, Venmo uses this service as a secure way to link your bank account to the app.
Is It Safe to Give Plaid My Bank Password?
Plaid uses data encryption to ensure that your bank password isn’t compromised. It uses best-in-class encryption protocols to keep your data completely private.
Since Plaid has high levels of security, countless users have decided to provide Plaid with their banking credentials.
Although few online services are completely fool-proof when it comes to security, Plaid has a good track record when it comes to keeping data safe.
Is It Safe to Link a Bank Account to Venmo?
Venmo uses bank-level data encryption to protect your personal information.
Generally, it’s safe to link your bank account to Venmo, although it’s good to keep in mind that Venmo can be hacked like any other banking app.
That being said, Venmo itself has put in place many security measures to ensure that your bank account remains secure when linked to Venmo.
For instance, one thing that can help protect your bank is enabling multifactor authentication upon sign-in.
What Banking Apps Use Plaid?
There are thousands of apps that use Plaid to link financial institutions to user accounts. Some banking apps that use Plaid include Chime, Varo, Current, SoFi, Simple, and Go2Bank.
In addition, money transfer apps that use Plaid include Cash App, Venmo, Metal, Wise, and WorldRemit.
Can Plaid See My Bank Account?
Plaid’s main purpose on Venmo is to verify your bank account to make sure you entered the right information.
Then, it periodically checks your account balance to ensure that certain payments can be sent.
Overall, Plaid can see your bank account. Keep in mind, though, that it’s certified in internationally-recognized security standards.
Should I Change My Bank Password After Using Plaid?
If you are uncomfortable with the idea of Plaid storing your banking credentials, you can change your bank password or unlink your account on Plaid’s website.
Keep in mind that this will keep Plaid from accessing your account in the future.
However, it will still have the information it may have initially recorded from your bank accounts, such as your name and transaction history.
How Do I Opt Out of Plaid?
If you have already created a link to your bank account using Plaid, but you want to opt-out, you can create a Plaid Portal account to manage your connections and delete your financial data.
Otherwise, if you’re using Venmo and don’t want to sign in using Plaid, you have to select “Manual Verification” instead of “Instant Verification” after you link your bank account.
When you select Manual Verification, you will need to enter your routing and account numbers so that Venmo can access your bank account.
Manual Verification is done using a series of microtransfers, which are small amounts of money taken out of your account and promptly sent back to make sure everything is working properly.
To know more, you can also read our posts on whether Venmo is legit, whether Venmo is cryptocurrency, and how you can set up Venmo for business.
Venmo uses Plaid to instantly verify your bank account and then periodically check your account balance to make sure certain transfers can be completed.
Plaid uses many security measures and data encryption protocols to make sure your bank account data is safe. However, it can store your bank credentials and access your bank account, so keep this in mind when you are asked to sign in.