I have an individual account with Fidelity.com and a checking account with a federal credit union. I found that when I login my Fidelity online account, I can specify to transfer money from or to my credit union checking account. But when I login my credit union online account, I cannot find such a feature for transferring money out and in.

I wonder generally, what kinds of financial institutions can initiate money transfer from and out of their customers' accounts to other accounts at other financial institutions? Or,what qualifies a financial institution to be able to do so?

What kinds of financial institutions can be the passive side of such money transfer? (passive side as opposed to initiating side).

Thanks and regards!

  • This question might help you understand better: money.stackexchange.com/questions/10448/…
    – littleadv
    Apr 26, 2012 at 21:22
  • @littleadv:Thanks! I wonder what else financial institutions, such as online banks, brokery companies, etc, offer free money transfer out and in with an account at other financial institutions?
    – Tim
    Apr 27, 2012 at 16:12

1 Answer 1


Any institution that issues checks and is connected to the ACH system can be the passive side.

Any institution that clears checks and is connected to the ACH system can be the originating side.

Not any institution that can be - in fact is. Your credit union doesn't provide this service because they don't want to. It costs them money to implement and support it, but they don't see the required benefit to justify it. They can. My credit union does that.

  • Exactly. Schwab can pull funds from my bank, but my bank has so similar feature. Apr 26, 2012 at 20:17
  • Thanks! But I don't understand why being able to issue/clear checks decides being passive/originating side. By being either passive or originating side, the institution can both draw money from other institutions and send money to. If I understand correctly, being able to issue check makes the institution able to send money to other institutions, while being able to clear money makes it able to draw money from other institutions. So I cannot see the connection between the two.
    – Tim
    Apr 26, 2012 at 21:15
  • @Tim - I didn't understand your comment. These transfers are done through ACH, so the institution must be connected to the ACH system either as a check issuer or collector (usually its both).
    – littleadv
    Apr 26, 2012 at 21:20
  • @littleadv: Let me try again. If I understand correctly, being able to issue check makes a institution able to send money to other institutions. Together with being connected to the ACH, why does this make it the passive side?
    – Tim
    Apr 26, 2012 at 21:29
  • @Tim yes, and virtually any institution issuing checks is now connected to the ACH, since check do not have to be physically delivered any longer.
    – littleadv
    Apr 26, 2012 at 21:34

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