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The Fed's Automated Clearinghouse (ACH) payment system provides an electronic means to exchange debit and credit entries between banks and other depository institutions, in order to settle customer transactions. ... Common ACH credit transfers include direct deposits of payroll, Social Security benefits, and tax refunds.

Fedwire refers to a real-time gross settlement system of central bank money used by Federal Reserve Banks (the Fed) to electronically settle final U.S. dollar payments among member institutions.

The Federal Reserve Banks provide the Fedwire Securities Service, a securities settlement system that enables participants to hold, maintain, and transfer Fedwire-eligible securities.

The Fedwire Funds Service is a real-time gross settlement system owned and operated by the Federal Reserve Banks in which participants initiate payment orders that are individually processed and settled in central bank money in real time upon receipt. Once settled, Fedwire funds transfers are final and irrevocable.

The Fedwire Funds Service is generally used to make large-value, time-critical payments. The Fedwire Funds Service is a credit transfer service. Participants originate funds transfers by instructing a Federal Reserve Bank to debit funds from its own account and credit funds to the account of another participant.

Fedwire (formerly known as the Federal Reserve Wire Network) is a real-time gross settlement funds transfer system operated by the United States Federal Reserve Banks that allows financial institutions to electronically transfer funds between its more than 9,289 participants (as of March 19, 2009).

Wire transfers cost money for both the sender and the receiver whereas ACH payments are free or cost very little per transaction. Wire transfers are initiated and processed by banks while ACH payments are processed automatically through a clearinghouse.

Generally, almost all bank institutions use FedWire System, making transfers safe and expeditious. Usually, a wire transfer can take one or two days to deliver your money. The time depends on several factors; sometimes it can either delay for a couple of days, or be done in less than 24 hours.

Fedwire transfers allow individuals and businesses that have bank accounts to send and receive cash transfers and payments on a same day basis. ... The Fedwire transfer system is a real time, gross payment system. There is no netting of transactions between the originating bank and receiving bank.