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The ACH system was based on older check (cheque) clearing systems. In those systems the bank in which the check was eventually deposited was basically pulling f
by jsmith45 4y ago
The ACH system was based on older check (cheque) clearing systems. In those systems the bank in which the check was eventually deposited was basically pulling funds.
The US never had a Giro system. The main push based payments have generally been "wire transfers", which have significant cost, or ACH-based Direct Deposit, which is pretty much only used for payroll situations.
Even payment cards are fundamentally a pull based system.
Only Paypal, Venmo, CashApp, or other similar services have a push model, and those pretty much always wrap an under the hood ACH pull.
- mousetree 4y agoInteresting to learn about the history but why aren't they pushing funds today? It's technically all possible and presumably would have less fraud? Or in other words, why do most of the rest of the world favor pushing funds through their ACH-equivalent systems?
- hx833001 4y agoThis requires a new payment system. That’s why there’s RTP from The Clearinghouse and upcoming FedNow. US is late to the game on instant payments.
- mousetree 4y agoNo, my point is that it doesn't require a new payment system to enable this. ACH very much supports pushes.
- deleted 4y ago[deleted]