Fedwire® Funds Offline Service Retirement Frequently Asked Questions (revised March 2024)
On September 14, 2023, Federal Reserve Financial Services (FRFS) announced that the Fedwire Funds Offline Service will be retired on December 31, 2024. There are actions you must take by the end of 2024 if you wish to maintain access to the Fedwire Funds Service.
Fedwire Funds Offline Service retirement informational webinar
Please review the resources from the webinar on February 29, 2024 where we provided information regarding the Fedwire Funds Offline Service retirement this December.
Information covered in the webinar includes:
- Specific information about the retirement, what to expect and how to navigate it.
- Deadlines and milestones you need to be aware of.
- Actions you must take to continue your access to the Fedwire Funds Service after December 31, 2024.
- Questions from customers answered in real time
For more information, please contact your Relationship Manager.
Frequently Asked Questions
- Is the Fedwire Funds Offline Service the same thing as the service we use to call the Federal Reserve Financial Services (FRFS) to send and receive messages?
Yes, the Fedwire Funds Offline Service provides the ability for Fedwire Funds Service customers without an electronic connection to the Fedwire Funds Service to call the FRFS to send and receive their messages.
The Fedwire Funds Offline Service also provides a last-resort contingency option for Fedwire Funds Service customers with a FedLine® connection to call the FRFS to send a very limited number of critical messages if they are unable to access the Fedwire Funds Service electronically.
- Why are the Federal Reserve Banks retiring the Fedwire Funds Offline Service?
The decision to retire the Fedwire Funds Offline Service was made in response to declining interest in and usage of a manually intensive and aging service.
- When did the FRFS announce the retirement of the Fedwire Funds Offline Service?
On September 14, 2023, FRFS announced that the Fedwire Funds Offline Service would be retired, effective December 31, 2024.
Additionally, with the retirement of the Fedwire Funds Offline Service, customers that access the Fedwire Funds Service via the FedLine Direct® or FedLine Advantage® solution would no longer have the ability to use the Fedwire Funds Offline Service as a last-resort contingency option to send their Fedwire Funds Service messages.
- When will the Fedwire Funds Offline Service be officially retired?
The service will be officially retired on December 31, 2024, at 6:30 p.m. ET.
- Is offline access to the Fedwire Securities Service also being retired?
No, offline access to the Fedwire Securities Service will remain and is not impacted by this change.
- I use the Fedwire Funds Offline Service as the primary method to send and receive my Fedwire Funds Service messages. What can I do to maintain access to the Fedwire Funds Service for sending and receiving messages and transferring funds into and out of my Federal Reserve master account?
To maintain direct access to the Fedwire Funds Service (and to transfer funds into and out of your master account through the Fedwire Funds Service) following the elimination of the Fedwire Funds Offline Service, you must take one of the following actions prior to December 31, 2024:
- Establish a FedLine Advantage connection and obtain access to the FedPayments® Manager – Funds application
- Establish access to the Fedwire Funds Service through another entity that provides you with both a FedLine Direct connection and a payment application to access the Fedwire Funds Service. These entities include non-bank service providers, banker’s banks, and corporate credit unions.
Note: If you do not establish electronic access to the Fedwire Funds Service (through your own connection or through another entity) but rather only establish a correspondent relationship with a banker’s bank, corporate credit union, or other correspondent bank to support your wire transfer processing, you would be unable to access the Fedwire Funds Service to send or receive Fedwire Funds Service messages or transfer funds into or out of your master account via the Fedwire Funds Service through that correspondent relationship. Rather, you would send to or receive from your banker’s bank, corporate credit union, or other correspondent bank wire transfer instructions and settle those transactions on your correspondent’s books. Your correspondent in turn would send or receive Fedwire Funds Services messages on their own behalf and settle those transactions in their own master account.
- How do I go about establishing a FedLine Advantage connection and obtaining access to the FedPayments Manager – Funds application?
Contact your Relationship Manager to begin the process to establish a FedLine Advantage connection and obtain access to the FedPayments Manager - Funds application.
- How long does it take to set up a FedLine Advantage connection?
The technical process to set up a FedLine Advantage connection can take 60 to 90 days. This is why you should take action as soon as possible to establish your connection prior to the sunset of the Fedwire Funds Offline Service at the end of 2024. See FedLine Advantage Setup for more information.
- What are the technical/security requirements for establishing a FedLine Advantage connection?
Your Relationship Manager will walk you through the process to set up a FedLine Advantage connection. You can also review the FedLine Advantage Hardware and Software Requirements page for additional information.
- What are the costs associated with obtaining a FedLine Advantage connection?
The costs associated with a FedLine Advantage connection vary depending on the type of packages you sign up for. Your Relationship Manager can help you determine the right package for your institution.
- Where can I find a list of non-bank service providers that provide access to the Fedwire Funds Service?
The first column of the table of Vendors that Offer Products that Facilitate use of the Fedwire Funds Service provides a list of FedLine Direct solution service providers. These service providers provide both a connection to the Fedwire Funds Service via the FedLine Direct solution and a payment application that would enable you to send and receive your Fedwire Funds Service messages.
- I have a FedLine connection (FedLine Direct or FedLine Advantage) and only use the Fedwire Funds Offline Service in contingency situations. What are my contingency options once the Fedwire Funds Offline Service is retired?
Effective January 2, 2025, Fedwire Funds Service customers with access to the Fedwire Funds Service via the FedLine Direct or FedLine Advantage Solution will be able to use a new FedPayments Manager – Funds import contingency service as a last-resort contingency option to send a limited number of bank transfer and customer transfer messages. For more information, see FedPayments Manager - Funds Import Contingency Service Frequently Asked Questions.
You should contact your Administrative Reserve Bank to discuss your Federal Reserve Bank account relationship. Generally, institutions do not need to maintain a specific balance in their master account other than as needed to settle transactions, fees, and other obligations owed to the Federal Reserve Banks. - What are the advantages of having access to the FedPayments Manager – Funds application through the FedLine Advantage Solution?
Having access to the FedPayments Manager – Funds application through the FedLine Advantage Solution will allow you to maintain access to the Fedwire Funds Service. The FedLine Advantage Solution also:
- Provides an attended system that leverages state-of-art technology to design and deliver highly secure and reliable services
- Allows you to control the level of access for any individual in your organization to provide personalized, quick and efficient access to those services for which a subscriber is authorized
- Offers online help with an index of topics, a glossary of definitions and tools to answer questions about how the system works
- Delivers online notifications and other important messages, via the secure My Messages inbox in FedLine Home
- Once the Fedwire Funds Offline Service is retired, what will happen if another Fedwire Funds Service customer sends my institution a “type code 16” settlement transaction?
Once the Fedwire Funds Offline Service is retired, customers that do not have access to the Fedwire Funds Service via the FedLine Direct or FedLine Advantage Solution will no longer be able to send or receive Fedwire Funds Service messages, including “type code 16” settlement transactions. Therefore, the Fedwire Funds Service would reject any transactions sent to them by other Fedwire Funds Service customers.
- Am I required to maintain my Federal Reserve master account after the Fedwire Funds Offline Service is retired?
The Federal Reserve Banks do not require financial institutions to have master accounts. However, if you would like to retain access to the Fedwire Funds Service after the retirement of the Fedwire Funds Offline Service, you will need maintain your master account and obtain an electronic connection to the Fedwire Funds Service—either your own connection or through a service provider’s connection. If you have access to the Fedwire Securities Service, you must maintain a master account if you would like to send and receive securities against payment; otherwise, you will only be allowed to send and receive securities free of payment. You also must have a master account if you are a settler in a National Settlement Service settlement arrangement.
You do not need a master account to access the Federal Reserve’s retail services (e.g., check, FedACH® Service, FedNow® Service) and instead may settle your activity in the master account of a designated correspondent bank. For more information on designating a correspondent bank to settle your activity, see Correspondent or Respondent. If you have additional questions about your master account, please contact your institution’s Administrative Reserve Bank staff.
- I do not want to set up an electronic connection to the Fedwire Funds Service. What do I need to do?
Once the Fedwire Funds Offline Service is retired, you will no longer be able to send or receive Fedwire Funds Service messages. Please contact your Administrative Reserve Bank to discuss your Federal Reserve Bank account relationship.
- If I lose access to the Fedwire Funds Service or close my master account, can I still access the Discount Window?
Yes, access to the Discount Window is separate from access to the Federal Reserve financial services and does not require a master account. An institution that has access to the Discount Window may designate a correspondent bank whose master account is used to receive and repay Discount Window advances.
- Am I required to maintain a specific balance in my Federal Reserve master account?
You should contact your Administrative Reserve Bank to discuss your Federal Reserve Bank account relationship. Generally, institutions do not need to maintain a specific balance in their master account other than as needed to settle transactions, fees, and other obligations owed to the Federal Reserve Banks.