Really great post from Modern Treasury. They are crushing it.
My only question with this explanation is -- to be a 3rd party service provider, this means they would need a somewhat intense bank integration with 1 side of the ACH, right? The retailers definitely just fill out an ACH release form like [1], and I really think the distributors don't do a heavy bank integration either...
Interesting... I don't know much about Fedwire, I will check it out. Thanks YuriNiyazov!
And yes sorry it's not free, just relatively cheap -- I think it's $200/year and $1 per transaction, which doesn't seem like enough to cover traditional wires.
Alright yuriniyazov, I’ve been reading for hours about Fedwire but I’m still a bit stumped. To participate directly in Fedwire you need to have a Master account with the Fed, in which case you need to basically be a bank. So they… have a secret subsidiary that’s a bank that has a fed master account? Or somehow a very, very good relationship with their bank such that their bank (which has a master account) proxies the Fedwire transactions for them at cost?
My only question with this explanation is -- to be a 3rd party service provider, this means they would need a somewhat intense bank integration with 1 side of the ACH, right? The retailers definitely just fill out an ACH release form like [1], and I really think the distributors don't do a heavy bank integration either...
[1] https://burkedist.com/application/files/3314/8823/3226/Burke...