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Transfer Money By ACH Push, Not Pull

Wednesday, December 5, 2012 - 7:08 PM
This FinanceBuff article suggests, where possible, utilize an ACH push
instead of an ACH pull to transfer money because:

  "...when you push, the sending bank knows how much money you
   have. It lets you push only if you have enough money in your
   account. When the money arrives at the receiving account, the
   receiving bank treats it as good funds because the sending
   bank already verified you have enough money before sending it.
   There’s no hold on the money pushed in.

   When you pull, they don’t know whether you have enough money
   in your source account. The source bank can always come back
   and reverse it. This is for your protection. You don’t want
   random people to pull money from your bank account and not
   have recourse. Because of this lack of confidence in whether
   the money is good or not, the receiving bank often places a
   hold on the money pulled in..."
9
cumuluscumulus357 posts since
Jan 16, 2010
Rep Points: 1,662
1. Wednesday, December 5, 2012 - 8:57 PM
I often do not have a choice of ACH push or pull.  If only the bank which receives the transferred money has ACH mechanism (while the sending bank does not), then an ACH pull is the only alternative.  For prudent people, NSF is very rare (i.e., never happens). 

For all banks (with ACH) that I am aware of, there is no hold of funding for ACH transfers let it be push or pull; ACH latency is another matter.
3
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
2. Wednesday, December 5, 2012 - 9:38 PM
Ally does the one day hold on funds you pull via an ACH, while
it does NOT do the one day hold on funds pushed via an ACH. I'm
not really familiar with what most other banks/credit unions do
in this situation.
4
cumuluscumulus357 posts since
Jan 16, 2010
Rep Points: 1,662
3. Wednesday, December 5, 2012 - 11:09 PM
Ally does the one day hold on funds you pull via an ACH, while
it does NOT do the one day hold on funds pushed via an ACH. I'm
not really familiar with what most other banks/credit unions do
in this situation.

You may be right.  I have not done large sum ACHs with Ally for a long time; their ACH latency is longer than Alliant.  I only do small-amount ACHs with Ally to meet RCA monthly requirements. 

2
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
4. Thursday, December 6, 2012 - 7:18 PM
Kind of looks like folks do whatever they want to with ACH requests:

Not so customer friendly: ING which does a 2 business day hold for an
ACH push or pull to your ING checking account; they do a 5 business
day hold for an ACH push or pull to your ING savings account!

More customer friendly: ALLY does a 1 business day hold on an ACH pull,
but does NOT do any hold on an ACH push; applicable to any of your ALLY
deposit accounts.

Most customer friendly: Alliant CU, SFGI Direct do no holds on ACH
transfers, push or pull, to their deposit accounts.  Alliant and SFGI
also claim no hold regardless of the amount of the transfer.

This represents my own personal experience with these financial concerns;
I'm curious about experiences others have had on this matter?
2
cumuluscumulus357 posts since
Jan 16, 2010
Rep Points: 1,662
5. Thursday, December 6, 2012 - 8:40 PM
In my experience, Incredible Bank (a divison of River Valley Bank) does not put holds on ACH deposits -- in other words, they are treated as cash. To the best of my memory, there is nothing in their FAQs about it; rather, that is my experience with my account. And I always do an ACH pull, as Incredible Bank is VERY FAST!
2
WilWil242 posts since
Feb 26, 2010
Rep Points: 1,285
6. Thursday, December 6, 2012 - 9:23 PM
One of the best ACH mechanisms I experienced is the Erie GE FCU ACH.  No limit, next (business) day transfer, no hold.  Just perfect.
3
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
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