Federal Reserve Fedwire

Federal Reserve Fedwire

An electronic funds transfer system that the Federal Reserve Banks use to transfer money between accounts. The Fedwire lets the transfers take place immediately. It is used for business between Federal Reserve Banks as well as for business among the Banks, member banks, and/or their clients. Payments made over the Fedwire are irrevocable.

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Federal Reserve Fedwire. Fedwire is an electronic transfer system owned and operated by the 12 Federal Reserve Banks that enables participants to move money from an account they maintain with the Federal Reserve to the account of another participant in real time during operating hours.

The payments are final and irrevocable, either when the amount is credited to the recipient's account or when the payment order is sent to the participant, whichever occurs first.

Fedwire, which operates on the Federal Reserve's national communications network (FEDNET), connects the Federal Reserve Banks, their branches, the US Department of the Treasury, banks that are members of the Federal Reserve and those that aren't, and branches or agencies of banks based abroad.

The system is used both to handle internal banking business, such as shifting balances to reflect money transferred by check, and to facilitate commercial transactions between bank clients.