Fedwire is a gross settlement system that is operated by the U.S. Federal Reserve. It processes large-value items with same-day, real-time settlement. The system is used to transfer funds between the 12 federal reserve banks, as well as among other members of the federal reserve system.
The process flow for a Fedwire payment is for a paying company to transmit payment instructions to its bank, which debits the paying company's account and forwards the payment instructions to the Federal Reserve (Fed). The Fed then debits the paying bank's account at the Fed and credits the account of the beneficiary bank at the Fed. Finally, the beneficiary's bank credits the account of the beneficiary.