It is necessary to reauthorize ACH linkage due to Section 1033 of the Dodd-Frank Act of 2010. This rule formalizes consumer rights for financial data access and introduces new consumer protections to help ensure safe and secure data sharing.
Authorized third parties (such as TradeUP) are entities that are authorized by a consumer to receive their financial account information. Per Section 1033, consumers will need to reauthorize their account connections (such as ACH linkage through Plaid) to authorized third parties every 12 months.
You can learn more about Section 1033 here.
Still got questions? Contact TradeUP Customer Support by email at support@tradeup.com or reach out to us on Live Chat!