Banking question: how does Plaid verify bank accounts so quickly when the old way that most services still use had that messing around with sending 2 small deposits that had to be verified? What changed?
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Logging in is just the UX. I want to know why all services can't use this method instead of tediously entering the account and ABA manually and doing some microdeposit shennanigans in the backend.
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I think I prefer the old system. Our account was hacked, but the smoking gun was the micro-deposit/withdrawal transaction, so the bank could find it and neutralize it, and they covered the loss to our account. Without that... ?
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Are they doing it by a database w names and account numbers, or by actual verification ? The two-factor method has immense support (Amazon etc).
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If you mean the micro deposit verification for ACH, it covered by NACHA and their rules. nacha.org/rules/suppleme








