Same Currency Wire
Wire payments are a secure way to move electronic funds from one party to another across a network of banks and transfer agencies around the world.
Transfers can happen person to person, between banks, or using a third-party service. Wires are typically high-value payments that can be used both domestically and internationally, using the same currency or cross-currency foreign exchange (FX).
Benefits
When using the Global Payments API to send wire payments, you are entitled to the following benefits of banking with J.P. Morgan:
Global Clearing
J.P. Morgan is one of the largest Global Clearing Banks with up to $10 Trillion processed a day.
Processing Speed
J.P. Morgan offers processing often in under 2 minutes with a High STP Rates of 99.4% and a book transfer rate of 65.9%.
Principal Protect
J.P. Morgan provides a principal protect feature offered with a robust set of capabilities.
When to use Wire Payments
The following list covers common use cases that demonstrate when to use wire payments:
- Treasury Settlements: Easily move funds around the world to optimize liquidity structures to ensure funds are needed in the place they should be needed and anything else is invested.
- Domestic and Cross-border Payments: Easily pay suppliers and vendors domestically or cross-border.
- Tax Payments: Businesses can easily pay taxes directly from their bank account to their tax entity from anywhere in the world.
How Wire Payments Work
Processing
Processing a wire payment involves clearing and settling the transfer:
- Clearing: The transfer and confirmation of information between the payer and payee. All transfers going through a domestic clearing house before they can be settled.
- Settlement: The actual transfer of funds between the payer and payee’s financial institution.
Messaging
Wire transfers need to transmit payment codes and banking instructions through a secure system such as SWIFT (Society for Worldwide Interbank Financial Telecommunication), which provides a network that enables financial institutions worldwide to send and receive information about financial transactions.
SWIFT does not facilitate funds transfer, rather it sends and receives payment orders, which must be settled by correspondent accounts that institutions have with each other.
Types of clearing
The following flows show the flow of a wire transaction and how its cleared in both individual and bank initiated transfers.
Straight through processing flow
The following diagram illustrates the end to end processing flow of a wire transaction.
Cross-border flow
Cross-border wire payments require the use of correspondent banks. The following diagram illustrates the flow of a cross-border wire, where both the remitter and beneficiary are not based in the country of the payment currency.
Sending wires with the Global Payments API
The Global Payments API allows users to initiate wire credit transfer payments in a lightweight, yet robust manner.
A POST request communicates the details of the payment and the synchronous ACK/NACK responds with real-time information to confirm if the request made it through the initial processing. The J.P. Morgan Payment Status Track-n-Trace API offers continuous status tracking information for these transactions.
Availability
Wire Payments are currently available for Global Payments API initiation in the following regions and markets.
| Regions | Market/Scheme |
|---|---|
| Europe, Middle East, and Africa (EMEA) |
|
| North America (NA) |
|
Next Steps
- Learn how to initiate a Wire Payments request.
- Understand the required payment parameters for your region.