What I've never understood is why the US system relies so much on ACH Pulls rather than Pushes? For example, most banks allow you to pull money from an external account (by verifying you own the external account using something like Plaid Identity or microdeposits) but don't always offer the ability to push funds.
It seems pulling is much more open for abuse than pushing funds. Perhaps it has something to do with the originator having liability for a potential returns.
In Europe, I've never seen any bank allow customers to pull funds (something like a SEPA I guess) but its extremely common to push funds very easily to another account just by entering their IBAN (not so in the US though).
It seems pulling is much more open for abuse than pushing funds. Perhaps it has something to do with the originator having liability for a potential returns.
In Europe, I've never seen any bank allow customers to pull funds (something like a SEPA I guess) but its extremely common to push funds very easily to another account just by entering their IBAN (not so in the US though).