What is the Federal Reserve Wire Network?
Sometimes referred to as FedWire, the Federal Reserve Wire Network is an example of a real-time gross settlement system. Essentially, this type of system allows for the timely processing of wire transfers between banking institutions that are part of the network. This allows for the transfer of funds immediately, without the need to transport physical cash. The Federal Reserve Wire Network is often employed when large amounts are involved in the electronic transfer. Corporations often make use of this form of transfer in order to quickly and securely manage the wire transfer on important transactions. The actual process allows for the immediate debit of the funds from an account on the originating bank and the simultaneous receipt and posting of the funds into the bank account of the receiver. Because of the high level of security involved with the Federal Reserve Wire Network, the transfer of large amounts of currency using this method has proven to be a real asset in the business wor
