Pushing and pulling funds

When making an electronic funds transfer between accounts at different banks, pushing money involves the sender initiating the transfer request. They usually do this through a mobile app or online banking. The bank takes the sum out of the sender’s account and deposits it into the recipient’s account. As soon as the funds arrive in the recipient account (often within 1-2 business days) they can be used immediately, because there are typically no hold times when you push funds. However, one limitation is that push transfers often come with lower transfer limits than pull transfers.

On the other hand, pulling money involves the recipient initiating the transfer request. The bank transfers the requested amount from the account holder’s account to the recipient’s account. Hold times (often a week or more) are a consideration when pulling funds, as the transferred money is not immediately available in the recipient’s account. Despite this drawback, pull transfers often allow for higher transfer limits compared to push transfers. For example, some banks might set a daily transfer limit of $3,000 for push transactions, while pull transactions might have a higher daily limit, such as $10,000. These limits can vary depending on the bank’s policies and the type of account being used, so it’s essential to check with your bank to understand the specific limits that apply to your situation.