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Comment by TimMeade | Hacker News Reader

Even after reading this I'm still confused on what plaid is bringing to the table. Why not do it all through stripe? If someone has the tech skills to integrate to stripe, it seems a short step to add ACH.

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Plaid provides a better verification and authentication flow.

Users authenticate with bank username and password rather than routing and account number so they don't have to hunt those down, and there are no worries about mistyping (failed ACH payments cost $4).

The bank account is verified straight away, which bypasses the microdeposits flow that takes a couple business days.

I'm working on adding ACH payments to my Stripe Connect app, and I'm planning on adding only the Plaid Link flow because the routing/account number + microdeposits flow just seems like too much of a headache.

Bank username and password?

You mean I'm expected to enter my bank username and password anywhere else than my bank?

Stripe does ACH, Plaid does account verification in lieu of microdeposits.

it verifies the funds are there, at that moment, but what about when the batch closes... will the Funds still be there?

I don't know the details but I'd guess that there's no funds verification involved just the validity of the account itself (which is what the micropayments are for when validating a checking account for the ACH flow).

Unfortuantely, creating a memo post (hold on funds) is impossible given today's ACH infrastructure. That said, you can use Plaid to monitor funds availability throughout the lifetime of the transaction, and to predict the likelihood of clearing.

ok that helps. Does this only happen if the account has been 'pre verified' with plaid? or do they still have to do the micro deposits if this is a first time they have used ach?

Nope, no micro-deposits necessary at all

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