FedWire

The Federal Reserve Wire Transfer Service

What is Fedwire? Fedwire? The Federal Reserve Fedwire system is an electronic funds and securities transfer system..

Federal Reserve?
The Federal Reserve Bank has a few jobs: lender of last resort, regulator for banks, executor of US monetary policy, etc. The role and purpose of the Federal Reserve Bank in wire transfers is primarily as a bank for banks, a correspondent bank, a financial services provider. In the context of wire transfers, to electronically transfer funds, the Fed does three things:
1. 2. 3.

Holds money and moves money from one account of a bank to another (ABA being the account number) Communicates to the sender that money was moved and communicates to the receiver that money was moved Guarantees the money has moved

Operating Hours
All Fedwire transfers are completed on the day they are initiated, generally in a matter of minutes. They are guaranteed to be final by the Fed as soon as the receiving institution is notified of the credit to its account.
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The Fedwire Funds Transfer Service operates from 12:30a.m to 6:30p.m ET The Fedwire Securities Transfer Service operates from 8:30a.m to 3:30p.m ET

Fedwire Process
US Payment Flow

Originator

Originating Bank

Beneficiary Bank

Beneficiary

Federal Reserve

THANK YOU!