What is Fedwire?
Fedwire is the Federal Reserve's system for sending US dollar wire transfers between banks, settling each payment individually and in real time. A Fedwire transfer is final and irrevocable once processed, which is why it is used for large or urgent payments. Example (invented, for illustration only): a Florida importer wires $85,000 to a Houston freight company's routing and account number at 10:00 a.m. Eastern Time, and the funds settle at the receiving bank within minutes.
- The Fedwire Funds Service is a real-time gross settlement system, and transfers are immediate, final and irrevocable once processed.
- The Fedwire business day runs from 9:00 p.m. ET on the preceding calendar day to 7:00 p.m. ET, Monday to Friday, with a 6:45 p.m. ET deadline for customer transfers.
- Fedwire carried 217.3 million transfers worth about $1.15 quadrillion in 2025, an average of $5.28 million per transfer.
- Fedwire moved to the ISO 20022 message format on 14 July 2025 in a single-day implementation.
How Fedwire works
The Fedwire Funds Service is run by the Federal Reserve Banks. Banks and certain other institutions with an account at a Federal Reserve Bank instruct the Reserve Bank to move funds from their account to another participant's account. Each payment settles on its own, in full, the moment it is processed: this is called real-time gross settlement. The Federal Reserve describes the service as generally used for large-value, time-critical payments.
| Point | Fedwire Funds Service |
|---|---|
| Business day | 9:00 p.m. ET on the preceding calendar day to 7:00 p.m. ET, Monday to Friday, excluding holidays |
| Deadline for customer transfers | 6:45 p.m. ET each business day |
| Finality | Immediate, final and irrevocable once processed |
| Transfers in 2025 | 217,296,700 |
| Average daily value in 2025 | About $4.59 trillion |
| Average value per transfer in 2025 | $5.28 million |
| Message format | ISO 20022, since 14 July 2025 |
Sources: Federal Reserve Board, Fedwire Funds Services; Federal Reserve Financial Services, Fedwire annual statistics and ISO 20022 implementation notice. As published on 29 October 2026.
Saturdays, Sundays and Federal Reserve holidays are not business days, so a wire requested after Friday's cut-off settles on the next business day.
Where a business meets Fedwire
When a US customer says it will "wire" a payment to a US account, it usually means Fedwire. The payer needs the beneficiary's routing number, account number and exact account name. Each bank sets its own customer cut-off, earlier than the Fedwire deadline, and its own fee.
Fedwire also carries the US leg of many international dollar payments: a SWIFT payment in dollars often settles between US banks through Fedwire or CHIPS before it reaches the beneficiary's bank abroad.
The move to ISO 20022 in July 2025 changed what a wire can carry. The former Fedwire format gave each party's address three free-text lines of up to 35 characters; ISO 20022 uses separate structured fields, such as a 2 character country code and a street name of up to 70 characters, and supports longer names and structured remittance information. Give payers your full registered name and address so their bank can fill these fields correctly.
Common mistakes with Fedwire
- Expecting to cancel a wire. Because transfers are final once processed, a mistaken wire can only be returned with the receiving side's cooperation. Check the details first.
- Sending after the bank's cut-off. Banks set cut-offs before 6:45 p.m. ET. A late instruction goes the next business day.
- Using the wrong routing number. Some banks publish a separate routing number for incoming wires.
- Asking a US payer to Fedwire a foreign bank. Fedwire settles only between institutions with an account at a Federal Reserve Bank. A payment to a bank abroad goes by SWIFT, with US banks settling the dollar leg.
- Confusing Fedwire with FedNow. Both are Federal Reserve services, but they are separate systems with different features.
Related terms and how Helm handles it
Fedwire is the US real-time rail; ACH is the batch rail; CHIPS is the private-sector system for large dollar payments that offsets payments against each other. Its message format is now ISO 20022. Our guide to how long an international wire takes explains cut-offs and holidays.
Helm's USD account details in your company's own name receive Fedwire. Helm shows the fee before you send a wire; see how pricing works.
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What time does Fedwire close?
The Fedwire business day ends at 7:00 p.m. ET, and the deadline for transfers on behalf of a bank's customer is 6:45 p.m. ET. Banks set earlier cut-offs for their own customers.
Can a Fedwire transfer be reversed?
No. The Federal Reserve describes Fedwire transfers as immediate, final and irrevocable once processed. A mistaken payment can only be returned by the receiving party.
Is Fedwire open on weekends?
No. The Fedwire business day runs Monday to Friday, excluding Federal Reserve holidays.
What is the difference between Fedwire and SWIFT?
Fedwire settles US dollar payments between banks in the United States. SWIFT is a messaging network banks use to instruct each other across borders; the money then settles in each currency's own system.
Does Fedwire use ISO 20022?
Yes. The Fedwire Funds Service adopted the ISO 20022 message format on 14 July 2025 in a single-day implementation, replacing its former proprietary format.
References
- Board of Governors of the Federal Reserve System: Fedwire Funds Services
- Federal Reserve Financial Services: Fedwire Funds Service, annual statistics
- Federal Reserve Financial Services: Confirmed implementation of ISO 20022 on July 14 for the Fedwire Funds Service (18 June 2025)
- Board of Governors of the Federal Reserve System: Holidays Observed (K.8)
- Federal Reserve Financial Services: Fedwire Funds Service ISO 20022 implementation FAQ
This guide is general information for businesses, not financial, legal or tax advice. Rules, fees and timings were checked against the sources listed on the review date and may change.