Despite their strengths, short codes are not without their challenges and constraints.
1. Cost
Short codes can be expensive, especially compared to long codes or alternatives like push notifications or email.
U.S. Example Costs (approximate):
Dedicated short code setup: $1,000–$1,500 one-time
Monthly lease: $500–$1,000
Per-message cost: $0.01–$0.05 or nepal phone number data depending on volume
For small businesses or startups, these costs can be prohibitive.
2. Limited International Reach
Short codes typically only work within one country. If your audience is global, you may need separate short codes per country—or consider international-friendly alternatives like long codes or WhatsApp Business.
3. Carrier Approval Delays
Before using a short code, businesses must go through a carrier approval process, which can take weeks. During this time:
Your short code cannot be used.
Campaigns must be submitted and tested.
4. Limited Caller Identity
Unlike branded caller ID on voice calls, SMS short codes don’t show a sender name unless you're using branded messaging solutions or apps.
This makes it harder for users to verify message authenticity without context.
5. Regulatory Complexity
Short codes are tightly regulated:
Require user consent (opt-in) before sending messages.
Must provide opt-out (STOP) and help (HELP) commands.
Noncompliance can lead to hefty fines or carrier blacklisting.
6. Shared Short Code Deprecation
Many carriers, particularly in the U.S., are eliminating shared short codes due to:
Spam and abuse risks
Poor user experience
Lack of control over sender identity
This shift forces businesses to either pay for dedicated short codes or switch to alternatives like 10DLC or Toll-Free SMS.
7. Lack of Rich Media Support
While short codes can handle MMS, many businesses stick to basic text for cost and compatibility reasons. This limits the user experience compared to richer communication channels like RCS or WhatsApp.