Transfer Opening Balance

1hrlamke | Aug 25, 2023 | 19 posts since 2017

Tried to open an account with Bread Financial and "Plaid" would not recognize or accept my two outside accounts that countless other banks have with no problem. When I emailed customer support the answer was that they did not accept Plaid. What? Why would anyone sign on with them if they could not ACH their funds out when needed? Just curious if anyone else has run into this.

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Answers

planxy | Aug 27, 2023 | 140 posts since 2013

I also have run into trouble trying to get "Plaid" to recognize my banks. Have since found it is a relatively unsecure app even when "working." As one retired from banking I now recommend avoiding it!

1hrlamke | Aug 28, 2023 | 19 posts since 2017

Probably good advice, but how do these sites expect you to open new accounts when you can't ACH the funds in?

planxy | Aug 29, 2023 | 140 posts since 2013

Plaid is a manifestation of anti-consumer banking. (It has a rating of 1.5 out of possible 5 on Trustpilot.) I just walk away when a bank or increasingly so credit union throws these kinds of roadblocks in the way. There are plenty of good ones on THIS site, I keep 10 relationships alive for when a good deal arises.

TBT | Aug 31, 2023 | 168 posts since 2018

I don't particularly care for Plaid myself because I find the process is often glitchy and unnerving. Unfortunately many banks use it for opening an account, and it has NEVER become a deal killer to me. I've opened a couple of savings accounts with Plaid which turned out to be good bank choices. Some banks that initiate it will allow you to do the test deposit feature if the Plaid doesn't work. The other alternative is to use an alternate bank you're with which currently works with Plaid, just for the purpose of making the initial required minimum deposit. Then when your application is accepted and you are enrolled into the new bank, do the test deposits process with the bank that you had originally intended to use all along. As far as Plaid being a security and/or hack concern??.... I've never bought that! I think it's an unfounded charge that is innocently spread around and instills fear into others. I have accounts opened with Plaid that have held 6 figures cash, that I have never worried about or felt the need to change the passwords after doing Plaid. You are entering your encrypted username and/or password; Just how is that encryption any different & less secure then what you do with your online accounts all the time? Logic should also prevail that if the Plaid system was vulnerable to fraud it would have been discontinued long ago. However, with that aside, if I have learned that the bank will NOT ever allow me later on to make sizable ACH transfers via PULL (not a push), then that is a deal killer to me.

planxy | Aug 31, 2023 | 140 posts since 2013

Better Business Bureau has 1.5 stars out of 5 and a B rating for Plaid, in part because of insecurity. See [www.bbb.org/us/ca/san-francisco/profile/information-technology-services/plaid-inc-1116-918679]

TBT | Sep 1, 2023 | 168 posts since 2018

planxy,
You are directing us to that BBB link to read about the 23 complaints against Plaid while thousands of uneventful Plaid transfers take place daily. People will complain about a company to the BBB, but seldom do people go there to report when it works as it's supposed to. The vast majority of those 23 complaints are NOT about fraud, but are claims about technical issues & delays with Plaid. Half of America has little or no savings and can't tolerate cash flow issues. Failed online ACH transfers or frozen bank account are much more common occurrences. I would never use Plaid as a full time tool for automatic deposits & paying bills. We should be using it only for a one time account opening with a minimum opening cash deposit. I have yet to have ever read a single post on this DA website by someone who claims to have been hacked when using Plaid. A few years ago I was hacked online for $thousands$ at Chase Bank, but never by Plaid! We will just agree to disagree that Plaid is NOT the bogeyman many here make it out to be.

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