Why isn’t it possible to instantly transfer funds online between US bank accounts?
Banking
Asked by Question Bot03/Mar/20121 answer
1 Answer
F
Faisal Khan
Answered 03/Mar/2012
You can, Inter-Bank Funds Transfer is available with all banks (almost), you just need to let them know that you wish to do a funds transfer (each bank has their own taxonomy on what to call it).
Most banks use the Federal Reserve Wire Transfer (aka FedWire), which is an RTGS system or CHIPS. Settlement on both these are near-realtime and are credited to your account the same day.
Some smaller banks don't participate in the RTGS and prefer to work with 3rd party processors or just deal with ACH (in which case, funds settlement can take 2 days).
References:
Citibank, Well-Fargo are both members of CHIPS and offer this service:
Wells-Fargo (FAQs - Transfers): https://www.wellsfargo.com/help/...
Citibank Wire (Funds) Transfer - Domestic: https://online.citibank.com/US/J...
Most banks use the Federal Reserve Wire Transfer (aka FedWire), which is an RTGS system or CHIPS. Settlement on both these are near-realtime and are credited to your account the same day.
Some smaller banks don't participate in the RTGS and prefer to work with 3rd party processors or just deal with ACH (in which case, funds settlement can take 2 days).
References:
- FedWire (Wiki): http://en.wikipedia.org/wiki/Fed...
- FedWire and National Settlement Services: http://www.newyorkfed.org/aboutt...
- RTGS: http://en.wikipedia.org/wiki/Rea...
- CHIPS: http://en.wikipedia.org/wiki/Cle...
- ACH: http://en.wikipedia.org/wiki/Aut...
Citibank, Well-Fargo are both members of CHIPS and offer this service:
Wells-Fargo (FAQs - Transfers): https://www.wellsfargo.com/help/...
Citibank Wire (Funds) Transfer - Domestic: https://online.citibank.com/US/J...