What is Fedwire?

Fedwire is the Federal Reserve’s real-time gross settlement service for US dollar transfers between banks. Each payment settles individually in central-bank money, usually the same business day, and is final. It is the high-value cousin of ACH. Your ledger still holds the customer wallet until you send.

How does Fedwire work?

The sending bank submits a transfer to the Fed. The Fed moves balances on its books and notifies the receiving bank. There is no ACH-style return window. A mistake is a new transfer or a legal fight. Cutoffs are firm. Miss them and you wait until the next business day.

Fedwire vs ACH vs SWIFT

ACH is cheap, batched, and returnable. Fedwire is expensive, gross, and final. SWIFT is messaging, often used to instruct a Fedwire or a correspondent payment. In a product, “wire” often means Fedwire domestically and SWIFT abroad.

What do you hold?

The full amount until the bank confirms send. Do not release the wallet on “accepted for processing.” Confirm the Fedwire IMAD/OMAD or the bank’s success status.

How it works with Blnk

Post wallet to @PayoutUSD_WIRE with inflight true. Commit when the bank gives you a final Fedwire reference. Void if the send is rejected before settlement.