What is Fedwire? How large US dollar payments move between banks
By SendPay Business · · 2 min read
Fedwire is the Federal Reserve's system for moving US dollars between banks. When someone in the US sends a domestic wire transfer, it usually travels over the Fedwire Funds Service, which settles each payment one by one, in real time, and in full.
What it's used for
- Large or urgent payments, such as house purchases and business deals.
- Payments between banks themselves.
- The US leg of many international dollar payments.
Fedwire vs ACH
ACH moves payments in batches and is used for salaries, bills and everyday transfers. It's cheaper but can be slower. Fedwire handles each payment on its own and is final once settled, so banks usually charge more for a wire.
Sending dollars from abroad
A payment sent from outside the US usually travels over SWIFT to a US bank, which may then use Fedwire to reach the final bank. Each bank along the way can charge a fee, so check what the recipient will actually receive.
Where SendPay fits
In the US, SendPay platforms cover card payments only, such as payment links and invoices paid by card. Outside the US, platforms can also offer GBP, EUR and USD accounts and transfers, powered by licensed partners.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.