Wire transfer
An electronic transfer between banks that moves one payment at a time and, for domestic wires, settles in real time and cannot be reversed.
What a wire transfer is
A wire transfer is an electronic payment that moves funds from one bank account to another, one payment at a time. In the US, domestic wires run on the Federal Reserve's Fedwire Funds Service or the Clearing House Interbank Payments System (CHIPS). International wires use SWIFT codes and correspondent banks to reach banks abroad.
How it works
The sender gives its bank the recipient's name, account number and bank details, then authorizes the transfer. The bank screens the payment, including against OFAC sanctions lists, and sends it over Fedwire, where it settles immediately. Each Fedwire payment gets a tracking number called an IMAD.
- 01 · INSTRUCT The sender gives its bank the recipient's details and approves the transfer.
- 02 · SCREEN The bank checks the payment against fraud controls and sanctions lists.
- 03 · SETTLE Fedwire settles it in central bank money, and the recipient's bank credits the account.
When businesses use it
- Real estate closings and other large, time-sensitive payments
- Treasury moves between a company's own accounts and banks
- Paying overseas suppliers in US dollars
- High-value marketplace payouts and business invoice payments
Cross River sends and receives domestic wires over Fedwire with same-day settlement and IMAD tracking, plus USD wires to international beneficiaries through correspondent banks. OFAC screening runs before Federal Reserve processing. See wires at Cross River.