Overview

For payments that are highly time-sensitive, using the Wire rail may serve as a useful path to support payment execution, as well as any reconciliation needs. Sending payments on the Wire rail affords Customers with a secure and immediate method for transferring money, which include detailed routing and transaction information.

Wire transfers are final irrevocable payments settled individually and continuously throughout the day, ensuring counterparties' immediate access to funds. While wire transfers are typically used for large-value payments, the security of the Federal Reserve Network and ease of use have made Wires an attractive alternative for other payment types.

Currently, Newline supports outgoing, USD domestic Wires. These Wires are sent over two networks, depending on processing.

  • The Federal Reserve
  • Clearing House Interbank Payment System (CHIPS)

NoteRegardless of network selection, the Wire Transfer submitted is executed with the same functionality and timing expectations. The only difference is the confirmation received, either as a IMAD or CHIPS SSN. See Transfers API Reference for more details.

In the event your counterparty's account is also maintained at Fifth Third Bank, we'll enact your wire internally and it will not be sent over either network.

Keywords: Wire payments; outbound; Federal Reserve; IMAD; CHIPS; CHIPS SSN; ABA Routing Number; Wire Return; Wire Recall; Wire Changes

Counterparty Requirements

Before kicking off a new Wire, Customers will need to supply counterparty information so the payment is accepted by the network. Please see the below table for the fields required.

FieldContextRequired/Optional
counterparty_addressThe address associated with your designated counterparty. This will include fields to supply a full mailing address, including country.Optional
counterparty_nameThis is the name of the counterparty (consumer or business entity).Required
account_numberThe account number of the counterparty in question. This will be the account credited by the outbound Wire originated.Required
routing_numberThe routing number of the bank (or financial institution) at which the counterparty's account is maintained.Required

Constraints

Opening Hours & Cut-off Times

While Newline can receive Wire requests 24x7, Wire execution is bound by opening hours and cut-off times dictated by the networks and Fifth Third's processing windows.

Currently, Wire requests received between 7am - 6:15pm ET, Monday-Friday will be executed on the day received. If a Wire request is received outside of that window, it will be queued for the next business day. Holidays are non-business days, just like weekends, and therefore Wires received will be processed the next business day.

NoteThere can be counterparties that have additional constraints on receiving payments. For instance, Tax Payments sent to the ABA for the IRS will be rejected if received after 5pm ET.

Returns, Recalls, and Changes

If instructions for a Wire include an incorrect or invalid routing number (i.e., ABA number), the Fed sends the wire back almost instantaneously. If the wire is returned, your Relationship team is notified, who then validate and correct the ABA if possible. The Wire then needs to be resent with the corrected information. If the Wire transaction requires changes or additional information prior to being released to Fed or CHIPS, Newline and your Relationship team will contact you to obtain the required information, so the wire can be processed without resubmitting.

If a Wire sent contains a valid ABA, but you later determine that it is the incorrect bank, please reach out to your Newline Specialist as soon as possible, and we will make every effort to correct the instructions if the Wire is not yet processed, or recall the Wire if it was already sent out to the Federal Reserve.

FAQ

What if there is a wrong account number, wrong bank name, or wrong account name?

  • There is a distinction between “wrong” and “invalid”. If any of the information is “invalid”, meaning it is not a true ABA, or bank name, the result is as stated above. However, if the instructions contain valid ABA and bank names, but cause the Wire to go to the “wrong” bank, the result should be that the receiving bank is unable to process and then returns the transaction back according to their processing rules.
  • Additionally, if the correct ABA/SWIFT BIC and bank name are entered however the counterparty account number is wrong, the counterparty bank will return the wire or post the funds if the account number is valid at the counterparty bank. Wires are irrevocable, final payments settled continuously throughout the day and validation of the counterparty payment instructions is essential.
  • If you are aware of any invalid information, please contact your Relationship team to open an investigation.

When one of our transactions is returned to Newline because of incorrect info, will our account be credited for the amount of the Wire?

  • Yes. As long as the Wire error was detected prior to Fed or CHIPS release, you are notified of return Wires and may reinitiate as processing deadlines allow. In the event that the Wire bypassed our systemic routing instruction edits and the counterparty bank is returning the wire, there may be handling fees lifted from the original Wire amount by the counterparty bank.

What information is included when posting domestic incoming / outgoing Wires?

  • Fed Reference Number (IMAD), if processed by the Federal Reserve
  • CHIPS Reference Number (7-digit, System Sequence Number (SSN)), if processed by CHIPS
  • Bank Reference Number (NNNNNN-NNNNNN; Transaction Number) if enacted internally. This will not be returned in our current product version.