Drawbacks of ACH Transfers
1. Processing Time: ACH transfers usually end up in one to two business days, so they are unfit for transactions that require speed and can be made faster using wire transfers.
2. Limited International Use: ACH transfers are mostly used by domestic entities within the United States and are very unlikely to be accessible for international transactions.
3. Potential for Reversals: Though largely irreversible, there is a small window of opportunity to void a transaction when some error has occurred or it has been an unauthorized one.
4. Transaction Limits: Some banks do have limits governing ACH transfers, including how much money can be transferred in one transaction or during a certain period of time.
5. Fraud Risk: The security measures may still not be reliable enough to prevent fraud, which may involve phishing, identity theft, or account takeovers.