Fedwire is a system by the Federal Reserve for instant domestic US payments between banks. It is fast, secure, and irrevocable once initiated.
Advantages of Fedwire:
Speed: Ideal for urgent or high-value transfers.
Security: Managed by the Federal Reserve, it is highly reliable.
Irrevocability: Finality of transactions.
Disadvantages of Fedwire:
Cost: Can be expensive, especially for smaller transfers.
Limited availability: Operates only on business days and specific hours.
Domestic focus: Not suitable for international transactions.
Fedwire is great for domestic transfers in the US that need speed and security.