Plaid Bank Connection
Plaid is the dominant US bank-link infrastructure provider — enabling MCA lead applications and underwriting platforms to securely access merchant bank account data including transaction history, account balances, and identity verification through merchant-authorized OAuth connections.
Why This Matters
Plaid integration has become near-standard for digital MCA application flows. Merchants authorize Plaid connection during application, instantly providing the funder with 12+ months of transaction history, current account balance, account ownership verification, and deposit pattern analysis. The data dramatically accelerates underwriting (often producing instant approvals) and validates revenue claims that merchants self-report on applications. Cost per Plaid connection runs $0.10–$0.50, making it economical even for early-stage application qualification.
Frequently Asked Questions
Frequently Asked Questions
What MCA underwriting data does Plaid provide?
12-24 months of transaction history, current account balance, average daily balance, deposit frequency and amounts, identification of recurring debits (existing MCA payments), NSF history, and ownership verification. Plus account-level metadata for fraud detection.
Are merchants comfortable with Plaid connections?
Generally yes for funding applications — Plaid's brand recognition and consumer financial app prevalence have normalized bank-link authorization. Connection completion rates run 60–85% when integrated cleanly into MCA application flows.