> ## Documentation Index
> Fetch the complete documentation index at: https://docs.kualia.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Bank Connections

> Connect your bank accounts for automatic transaction imports

## Overview

Kualia uses [Plaid](https://plaid.com) to securely connect to your bank and import transactions automatically. This eliminates manual data entry and keeps your budget up to date.

{/* <img src="/images/bank-connection-flow.png" alt="Bank Connection Flow" /> */}

## Supported Countries

Kualia currently supports bank connections in:

* **United States** 🇺🇸
* **Canada** 🇨🇦

<Note>Support for additional countries may be added in the future.</Note>

## How It Works

### Connecting Your Bank

<Steps>
  <Step title="Start the connection">Go to Accounts and select "Connect Bank" (or "Link Account").</Step>
  <Step title="Search for your bank">Plaid's secure interface lets you search for your financial institution.</Step>

  <Step title="Log in to your bank">
    Enter your bank credentials directly in Plaid's secure window. Kualia never sees your bank login credentials.
  </Step>

  <Step title="Select accounts">Choose which accounts to link - checking, savings, credit cards, etc.</Step>
  <Step title="Done">Your accounts appear in Kualia and transactions start importing.</Step>
</Steps>

{/* <img src="/images/bank-plaid-link.png" alt="Plaid Link" /> */}

### What Gets Imported

When you connect your bank, Kualia imports:

* **Account balances** - updated regularly
* **Transactions** - new transactions are synced automatically
* **Institution details** - bank name and logo

### Transaction Sync

After the initial connection, Kualia receives webhook notifications from Plaid whenever new transactions are available. The sync process:

1. Plaid notifies Kualia of new data
2. Kualia fetches added, modified, and removed transactions
3. New transactions are imported and auto-categorized
4. Modified transactions are updated
5. Removed transactions are handled appropriately

{/* <img src="/images/bank-sync-flow.png" alt="Sync Flow" /> */}

## Smart Features

### Auto-Categorization

Imported transactions are automatically categorized based on:

* Your categorization history for the same merchant
* AI-powered merchant classification
* Merchant name matching

### Merchant Recognition

Kualia maintains a merchant database that:

* Cleans up raw bank descriptions into readable names
* Displays merchant logos when available
* Remembers your preferred category for each merchant

### Duplicate Detection

When you connect your bank, Kualia detects potential duplicates between:

* Manually entered transactions and imported ones
* Pending and posted versions of the same transaction

You can approve or reject suggested matches.

{/* <img src="/images/bank-duplicates.png" alt="Duplicate Detection" /> */}

## Connection Health

Each bank connection has a health status:

| Status           | Meaning                                   |
| ---------------- | ----------------------------------------- |
| **Healthy**      | Connection is working normally            |
| **Error**        | There's an issue that needs attention     |
| **Pending**      | Initial setup in progress                 |
| **Disconnected** | Connection lost, re-authentication needed |

If your connection shows an error, you may need to re-authenticate through Plaid. This can happen when your bank requires periodic re-verification.

{/* <img src="/images/bank-health.png" alt="Connection Health" /> */}

## Security

* Kualia uses Plaid, a trusted financial data platform used by thousands of apps
* Your bank credentials are entered directly into Plaid's secure interface
* Kualia never stores your bank username or password
* Data is encrypted in transit and at rest
* You can disconnect your bank at any time

## Disconnecting

To disconnect a bank:

1. Go to your account settings
2. Find the bank connection
3. Select disconnect

Disconnecting stops future syncs but keeps your existing transaction history.