Bank Account API Linking Through Plaid

Bank Account API Linking Through Plaid

Sila’s money transfer API is a powerful API technology that allows fintech business owners to build the next future of money transfer technology. With our API stack, you have access to a powerful ACH API, and connectivity to the ACH Network, a bank account linking API, the wallet API, the KYC/KYB API, and our SILAUSD stablecoin.

Sila uses a secure network of partners to enable this app to work the way it does, opening doors in unprecedented ways. 

Critical to our API success is our partnership with the Plaid integration. To help you understand how this works, we’re walking through our bank account API linking through Plaid.

Providing Seamless Money Transfer Connectivity

Sila’s API stack offers seamless money transfer connectivity for eligible users. The Sila API comes standard with the following premium features:

  • Create digital wallets: End-users have access to digital wallets with FDIC pass-through insurance up to $250,000 USD.
  • Verify user identities: Our KYC API verifies user identities in compliance with U.S. Know Your Customer regulations.
  • Verify business identities: Our KYB API verifies businesses in compliance with U.S. Know Your Business regulations.
  • Link bank accounts: Our Plaid partnership enables a simple bank account API endpoint so neither Sila nor our clients have to manage sensitive banking data.
  • Perform ACH transfers: With connectivity to the ACH Network, Sila users can perform ACH debits and ACH credits for all U.S. citizens and permanent residents.
  • Program money movement: Our SILAUSD has smart contract capability, so you can program your app’s money using business logic self-executing smart contracts.

Sila’s financial apps come in Node.JS, Python, .Net, C# SDK, PHP SDK, and Javascript; you can also access API explorer demo and the Postman collection.

The Sila API design offloads a lot of the U.S. compliance requirements. While we still ask that users follow compliance best practices, know that you’re getting a lot of the compliance requirements already in our product. With this capability and the fact that our API is ready-to-go, with some customization needed, you’ll get to market faster and spend less money to get there. It also costs less to run your app once it is live!

With the Sila API, you’ll need fewer API endpoints to run basic money transfers. This makes your job far easier and will lead to less complexity while you grow. There’s no need to source a bank either, as SIla is a registered bank agent with Evolve Bank & Trust. 

Other perks? Sila’s embedded compliance reduces fraud risk and we have proprietary scoring models to analyze fraud potentials as well. Move money 24/7 with our SILAUSD stablecoin alternative too. This offers endless possibilities. 

Sila’s Plaid Partnership Makes Money Transfers Easier

Once you connect with Sila, you open up a world of connected payment providers. And none of our amazing perks exist without our partners. Here’s what Plaid does for us:

Who is Plaid? 

Plaid is a fintech company that powers bank account linking in many financial services. Plaid’s service is to provide an authentication server so that your financial information is kept secure. 

When other businesses use Plaid, they are offloading the collecting, encryption, and intense security measures that come with bank account verification. It allows other businesses, like SIla and the clients that Sila serves, to avoid dealing with this sensitive data, providing huge relief from having to manage sensitive personally identifiable information (PII), financial information hacking, server costs, and long-term PII storage costs.

To operate, Plaid uses an API much like Sila to communicate with your bank. They keep your information private, so you only have to use one business, Plaid, to facilitate online information shares through your bank and with other companies. Plaid works with a number of companies so that you don’t have to share your information with multiple APIs. 

With best-in-class encryption protocols, it’s no wonder that many businesses like Sila trust Plaid to protect user information.

How Does the Bank Account API Linking Through Plaid Work

When you go with Sila, you already have access to call the Plaid API. App users will need to have the Plaid AUTH subscription on their own account with Plaid.

Our bank account linking API can only connect with a select number of financial accounts. If you don’t see your bank on the list, then you can reach out to us or to Plaid to inquire about that potential partnership. Your clients use Plaid Link to authenticate with their financial institution and select the bank account they wish to use for payment transactions. You’ll receive a Plaid access_token and a Sila Money processor_token, which allows you to quickly and securely verify a bank funding source via Sila Money’s API without having to store any sensitive banking information. 

With Plaid and Sila Money working together, you have a seamless workflow for simplified sending and receiving payments. 

Once that is verified and you have obtained a Plaid token, your Sila support can walk you through the rest. However, since all you need to do is call the Sila API, the rest is simple. The call codes are in our documentation and you can test this feature in the Sila sandbox

The most common bank account linking codes developers will need are:

/link_account

/get_accounts

/get_account_balance

Getting Started With Plaid

Both Plaid and Sila use Plaid Link, a drop-in client-side integration to handle input validation, multi-factor authentication, and error handling. Once you have both your Plaid account set up and your Sila Money account, then you can start this integration process.

Bank account linking is done on the Plaid portal, so you will need to refer to the Plaid documentation. This will require that you have your Plaid account and each Plaid processor token and that you create a Plaid dashboard. You will also get a Sila processor token. 

Within your Plaid dashboard, you create a link token (link_token) to integrate with Plaid Link.

Once you have a link_token, all it takes is a few lines of client-side JavaScript to launch Link. Then, in the onSuccess callback, you can call a simple server-side handler to exchange the Link public_token for a Plaid access_token and a Sila Money processor_token.

Once you’ve walked through the linking side, you can move back to your Sila dashboard with your Plaid access token to test bank account linking requests and other use cases, like account linking expiration and checking account balance.

Get Started With Sila Today

As you can see, Sila’s smart partnership with Plaid just makes sense. This partnership allows Sila and all its users to tap into Plaid’s best-in-class encryption to keep user information safe. Talk about open banking!

No one else but Plaid is forced to bear the burden of PII and other sensitive financial data, which could pose large security and compliance risks and costs. 
Ready to get started with Sila today? It’s simple. Start up with our Sandbox for free.