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Connecting your bank account is a required step in the application process. It allows us to evaluate your business activity, determine an appropriate spending limit, and set up repayment.

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Connecting through Plaid

We use Plaid to securely connect your bank account during the application process. Plaid is a financial technology platform used by companies such as American Express and Venmo to authenticate and verify bank accounts. You can learn more at Plaid.com. When you connect through Plaid:
  • We can review account balances and transaction history
  • We can assess your cash flow in real time
  • We can enable direct debit repayment
  • We can proactively reassess your limit as your business grows
Karat does not receive or store your bank login credentials. Because Plaid provides real-time updates, it allows us to set and adjust your spending limit more accurately, often without requiring additional documentation.
Only U.S. based bank accounts are supported via Plaid for underwriting and payments. Foreign bank accounts are not supported at this time.

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ACH connection (alternative)

You may also connect your account using an ACH link by entering your routing and account number. An ACH connection allows us to: pull funds for repayment. However, ACH does not provide access to real-time balances or transaction history. If you request a limit increase while connected via ACH, we may require bank statements to evaluate your request.

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Linking additional accounts

You can connect additional bank accounts at any time. To add another bank account:
  1. Log into your Karat account
  2. Navigate to Settings > Connections
  3. Under Bank Accounts, select Add another bank
  4. Follow Plaid’s instructions to complete the connection
If your revenue flows across multiple accounts, linking them can:
  • Provide a more complete picture of your business activity
  • Strengthen your application
  • Support higher spending limits
  • Reduce the need for manual documentation
Linking the same bank account across multiple organizationsIf you manage multiple organizations and link the same bank account to more than one organization, Plaid’s duplicate account detection may flag this connection. You’ll see a warning when attempting to link an account that’s already connected to another organization you manage.While you can proceed with linking the same account to multiple organizations, be aware that this may affect how transaction data is shared and could impact underwriting decisions for each organization.

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Troubleshoot bank linking

If your bank is supported by Plaid but fails to connect:
  • Try reconnecting at a later time
  • Consider linking your account via ACH instead
If the issue persists, contact our team for assistance. Plaid connections may occasionally disconnect for security or technical reasons. If your linked bank account shows an error, reconnect it promptly to avoid disruptions to underwriting or payments. We may notify you if a connection issue is detected, and timely resolution is required. Karat is a financial technology company, not a bank. Banking services provided by Grasshopper Bank, N.A., Member FDIC. The Karat Visa® Business Credit Card is issued by Cross River Bank, Member FDIC, and pursuant to a license from Visa️ USA.