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Plaid is more of a monopoly than Visa is. Plaid is literally the only way to do ACH without microdeposit verification. There is no reason Plaid should have a m
by zelly 6y ago
Plaid is more of a monopoly than Visa is.
Plaid is literally the only way to do ACH without microdeposit verification. There is no reason Plaid should have a monopoly on this. If banks opened up APIs for bank account verification, then anyone could compete with Plaid.
As usual the Justice Department doesn't know what they're talking about.
- lolinder 6y agoSaying Plaid were more of a monopoly than Visa is (and Visa is a pretty bad monopoly), isn't that an even bigger reason for the justice department to move to prevent this acquisition?
- MaxGabriel 6y agoFwiw there are competitor services to Plaid, like Finicity
- ukd1 6y agoor https://teller.io https://teller.io
- aliyfarah 6y agoThis is a really bad take. Plaid is a 'monopoly' just as much as Stripe is. There is nothing stopping a company from doing the hard work of integrating thousands of banks using a single API. Furthermore, the fees Plaid charges are literally pennies, companies like Transferwise use them to do most of the bank transfers and yet still manage to offer the lowest rates for cross border payments. One final point: the future relevance of 'bank integration as an API' companies, such as plaid, is really murky. With the advent of Open Banking regulations, real time national payment systems etc the difficulty of integrating various banks using a single API will be drastically reduced.
- jkaplowitz 6y ago> Plaid is literally the only way to do ACH without microdeposit verification. The only way to do that in what context? When I had a very tiny freelance IT consulting side business in 2011 (and maybe some of 2010), TD Bank was happy to sell me ACH origination access as part of my business account. Yeah they charged me $10 per batch, so not great for a micro use case, but more tolerable when there are a bunch of higher-price-tag transactions per batch. They didn't require me to do any verification of the other account - they couldn't since the other account didn't have to be mine. I just had to agree to follow NACHA rules and I could put in any account number and routing number I wanted. It's amazing how much access a random individual is easily granted to pull and push money... (Obviously I didn't abuse it, and the blowback following a complaint would have been severe if I had.)
- adrr 6y agoPlaid has competitors in the verification space like Yodlee. Plaid doesn’t even scrape the sites, they utilize partners to do it.
- kyrra 6y ago> Plaid is literally the only way to do ACH without microdeposit verification Yodlee? https://www.yodlee.com/account-verification https://www.yodlee.com/account-verification
- pessimizer 6y agoAre you suggesting that the Justice Department wouldn't object to Plaid acquiring Visa?