1) Banks always pay ACH debit requests (that draw money from your account).
No - you can sign up for ACH positive pay if you want.
This generally gives you till 11AM PST to accept or reject an ACH request. You can set rules by originator -ie, always pay up to $X from originator ID $Y.
You can also set a default to either pay unless rejected or reject unless approved.
You can also put an ACH block on accounts that shouldn't have ACH activity.
All this costs money.
2) Wire transfers
Hard to rewind these, so lots of extra hoop jumping. New accounts may limit your ability to wire large amounts of money.
3) Fraud is real.
Consider your parents and their retirement account. How would you feel if someone wired out or transferred out their entire brokerage balance? Think of how they authenticate with bank - could someone fake this? YES! Your parents re-use their passwords, write them on sticky notes, and their PII is everywhere.
Some misconceptions though I'm seeing.
1) Banks always pay ACH debit requests (that draw money from your account).
No - you can sign up for ACH positive pay if you want.
This generally gives you till 11AM PST to accept or reject an ACH request. You can set rules by originator -ie, always pay up to $X from originator ID $Y.
You can also set a default to either pay unless rejected or reject unless approved.
You can also put an ACH block on accounts that shouldn't have ACH activity.
All this costs money.
2) Wire transfers
Hard to rewind these, so lots of extra hoop jumping. New accounts may limit your ability to wire large amounts of money.
3) Fraud is real.
Consider your parents and their retirement account. How would you feel if someone wired out or transferred out their entire brokerage balance? Think of how they authenticate with bank - could someone fake this? YES! Your parents re-use their passwords, write them on sticky notes, and their PII is everywhere.
Many more (sad) examples here.