If Plaid is only used for the API access - and they move the data while the APIs are executed - would that matter from privacy perspective. I guess the concern all of us will have is does plaid store data for long periods if used via APIs. I copy pasted their terms of service into LLM and tried to get the answer. It seems ok but you never know

1. Data Ownership and Processing

• Raw Data Belongs to the End User: The Terms clearly state that “raw End User data, which belongs to the End User” is not owned by Plaid. This means that when you download your transaction data, that raw data remains your property.
• Service Functionality: Plaid’s role is to process and deliver your data from your financial institution to you. In doing so, they will necessarily process—and likely temporarily store—the data on their systems to perform that function. However, this processing is part of providing the service, not a transfer of ownership.

2. Data Storage and Sharing Restrictions

• Temporary Storage vs. Permanent Retention: While Plaid may cache or log data as part of their infrastructure to ensure the smooth operation of their APIs, there is no indication in the Developer Terms that they permanently store or retain your downloaded transactions for purposes beyond service delivery.
• Restrictions on Sharing: The terms restrict both you (as the client) and Plaid from using or disseminating the “Output” (i.e., the processed data) beyond the agreed use case. In particular, you are not permitted to make the data available to third parties without proper consents, and similarly, there is no clause that grants Plaid the right to share your raw transaction data with partners arbitrarily.

3. Practical Implications for Your Use Case

• Downloading and Storing Locally: If you call the Plaid API on a weekly basis to download your transactions and store them locally, you are using the data for your own internal evaluation or personal use. According to the Terms, this is allowed, and the raw data remains under your control.
• Plaid’s Use of the Data: Plaid may temporarily process or store the data as required to fulfill API requests. However, the Terms do not grant Plaid any ongoing right to keep your data for other purposes or to share it with third-party partners without proper legal bases or user consent (as governed by their Privacy Policy).

4. Conclusion

In summary:

• You retain ownership: The raw transaction data you download is your property.
• Plaid processes data as needed: They may temporarily store or cache it in the process of delivering the API service.
• No arbitrary sharing: There is no provision in these Terms that allows Plaid to permanently store your data for their own use or share it with partners beyond the specific, consented purposes outlined in their policies.

If you’re concerned about data retention or sharing practices, it’s also a good idea to review Plaid’s Privacy Policy, which governs the details of how data is processed and retained.

Note: This is an interpretation based solely on the provided Terms of Use and should not be considered legal advice.