When you set up ACH payments in STRATAFOLIO, three companies work together to move your rent payment from your bank account to your landlord’s bank account. STRATAFOLIO is the platform where you set up and send payments. Plaid securely connects and verifies your bank account. Dwolla is the payment processor that moves the money.
This article explains what each company does, what information is shared, what STRATAFOLIO does and does not store, and how you can stay in control of your bank information. If your bank sent you a notice after you connected your account, this article also explains why.
What STRATAFOLIO Stores
STRATAFOLIO acts as a secure bridge between Plaid and Dwolla. It doesn’t store your bank login, full account number, or routing number. It keeps only reference numbers that link your setup to the right accounts, plus the amount, date, and parties for each payment. Any bank details you see in STRATAFOLIO, such as the bank name or the last four digits of your account, come directly from Plaid or Dwolla.
Why STRATAFOLIO Checks Your Balance
Before each payment, STRATAFOLIO uses Plaid to check whether your account has enough funds. This check decides how fast your payment is processed. It never stops your payment from being sent.
If funds are available, your payment is sent as an expedited transfer, which usually arrives in 2 to 4 business days. If funds are not available, or the balance cannot be checked, your payment is sent as a regular transfer, which usually arrives in 4 to 7 business days.
Why Your Bank Sends You a Notice
When you log in to your bank through Plaid, the bank records that you approved sharing information with Plaid and STRATAFOLIO. Many banks then send you a notice. This is normal and confirms the connection you just made.
How STRATAFOLIO Works with Plaid
The Plaid screen says it shares your information to help you invest your money and pay down debt. Plaid uses this general wording for all of its services. STRATAFOLIO does not use Plaid for investing, budgeting, or debt services. It uses Plaid only to connect and verify your account for ACH payments.
How You Stay in Control
You choose which account to share when you log in through Plaid. You can also remove a bank account from STRATAFOLIO. See more about each company and their role in ACH payments.
| Company | Its Role in Your ACH Payments | What It Receives | What It Does Not Do |
|---|---|---|---|
| STRATAFOLIO | The platform where you set up ACH and pay your landlord (as a tenant) or manage transfers (as a landlord). It connects you, Plaid, and Dwolla so your payment can move. | Reference numbers from Plaid and NMI | Dwolla that link your setup to your account, plus the payment amount, date, and who paid whom. Before a payment, it checks through Plaid whether funds are available so it can choose the processing speed. | It does not store your bank login, full account number, or routing number. Any bank details you see on your screen come directly from Plaid or NMI | Dwolla. |
| Plaid | Securely connects and verifies the bank account you choose. | With your permission: contact details, account and balance information (such as account name, type, balance, and a masked account number), and your account and routing number. | STRATAFOLIO does not use Plaid services for budgeting, investing, or debt payoff, even though Plaid shows general wording about them. |
| NMI | Dwolla | The payment processor that moves money from your bank account to your landlord’s bank account. | Your account and routing number, sent through a secure exchange with Plaid, plus the payment instructions for each transfer. Identity documents for a Premium account go directly to Dwolla. | It does not receive your bank login from STRATAFOLIO. |
| Your Bank | Holds your account and sends the money. | A record that you approved sharing with Plaid and STRATAFOLIO. Your bank may send you a notice about this. | It does not need any action from you unless you want to change or remove the sharing permission. |
