Why do I need to use webhooks?

A few of the reasons why you might need to use webhooks include:

1. Real-time Updates: Webhooks provide real-time updates about the status of various processes. For example, Plaid will send a webhook when an Item is in an error state or has additional data available, or when a non-blocking process (like gathering transaction data or verifying a bank account via micro-deposits) is complete.

2. Handling Asynchronous Processes: Some processes in Plaid are asynchronous and may take some time to complete. Webhooks allow Plaid to notify your application when these processes are complete and the data is ready to be accessed.

3. Error Handling: If an Item enters an error state, a webhook can be used to notify your application so that you can take appropriate action, such as prompting the user to update their credentials.

4. New Account Notifications: When a user adds a new account, you will receive a NEW_ACCOUNTS_AVAILABLE webhook. This can be useful if you need to take action whenever a user adds a new account.

To read a full list of webhooks that Plaid sends you for a given product you can navigate to your chosen product in the API section of our docs and select the webhook section.