Many users are hesitant to share their bank credentials when connecting accounts, and that's completely understandable. Your financial security is important, so it's natural to have questions about Plaid's safety. The good news is that Plaid is designed with bank-level security and is trusted by over 7,000 apps and major financial institutions. Here's everything you need to know about how Plaid keeps your information safe.
What is Plaid and why does it need my bank information?
Plaid creates a secure connection between your financial institution and apps like Accounts Payable that need financial information. Instead of storing your sensitive bank details, Plaid uses encrypted, protected tokens to shield your actual account information while allowing apps to access only the specific data they need, such as account balances or routing numbers for payments. You can learn more about Plaid on their official website.
How Plaid protects your financial data
Bank-level encryption keeps your data secure
Plaid uses the same encryption standards that banks use to protect your information:
- Advanced Encryption Standard (AES 256) protects any data that's stored
- Transport Layer Security (TLS) encrypts data while it moves between applications
- All information is encrypted from every side of the transaction—banks, apps, and customers
Multi-factor authentication adds extra security
Plaid uses multi-factor authentication (MFA) to protect your identity and prevent unauthorized access to your accounts. Even if your financial institution doesn't offer MFA, Plaid provides its own backup system to ensure almost all logins have this extra security step.
Secure cloud infrastructure built for safety
Plaid uses modern cloud technologies that have been developed and refined over decades. This cloud infrastructure provides flexible and responsive protection, leveraging years of safety enhancements to better protect your data.
24/7 monitoring and support
Plaid monitors their systems around the clock with:
- Automated alerts that detect potential issues
- A dedicated 24/7 on-call team ready to respond to any security concerns
- Instant support for any potential problems
Independent security testing ensures continuous improvement
Plaid undergoes regular security audits and testing:
- Trusted security researchers regularly audit Plaid's systems
- Major financial institutions verify Plaid's security controls
- A bug bounty program allows security experts worldwide to help identify and fix any vulnerabilities
- Plaid is certified in internationally recognized security standards like ISO 27001, ISO 27701, and is SSAE18 SOC 2 compliant
You control what information gets shared
One of Plaid's key security features is that you maintain control over your data:
- You choose which accounts to connect - select only the accounts you want to share with each app
- You decide what data to share - control whether apps can access account balances, transactions, or other information
- You can disconnect anytime - use Plaid Portal to view your connections, disconnect accounts, or delete your data from Plaid's systems
Plaid's commitment to privacy
Plaid takes your privacy seriously with clear policies:
- No selling or renting - Plaid never sells or rents your personal financial information to outside companies
- Permission-based sharing - Plaid only shares data with companies you've given explicit permission to access
- Transparent communication - Apps using Plaid must clearly identify when they're using Plaid's services
How safe is Plaid compared to other online financial activities?
Using Plaid is similar to other trusted online financial activities like shopping on Amazon or banking online. While there's always some inherent risk with any online financial activity, Plaid's security measures are designed to minimize that risk significantly.
Plaid is trusted by:
- Over 7,000 financial apps and services
- Major banks and financial institutions
- Millions of users who connect their accounts safely every day
The bottom line
Plaid uses bank-level security measures, industry-standard encryption, and multiple layers of protection to keep your financial information safe. With features like multi-factor authentication, 24/7 monitoring, and your ability to control exactly what data gets shared, Plaid provides a secure way to connect your bank account to trusted financial apps like Accounts Payable.
Your financial information belongs to you, and Plaid is designed to help you share it safely and securely with the apps and services you choose to use.
If you have specific security concerns or questions about connecting your bank account, you can always contact our support team for additional assistance.