Washington State University

Electronic Payments FAQ

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Electronic Payments FAQ

 

What is a SWIFT address?

What is an ABA number?

What is an ACH?

What is the difference between a wire and an ACH?

What is a correspondent bank?

Can I use the same ABA for an ACH and a wire?

When will my domestic wire be received by the payee?

When will my ACH transfer be received by the payee?

When will my international wire be received by the payee?

My payee is stating they did not receive a wire.  What should I do?

 

What is a SWIFT address?

 

The SWIFT address or BIC (Bank Identifier Code) is an 8 or 11 alphanumeric character sequence assigned by the Society for Worldwide Interbank Financial Telecommunication (S.W.I.F.T.) that uniquely identifies a financial institution and its location.  The code, which may be obtained from the receiving bank, is used by banks to exchange data for funds transfer between financial institutions.  It is necessary for all international wire transfers. 

 

What is an ABA number?

 

The ABA number, or routing transit number, is a nine-digit number assigned by the Federal Reserve System that uniquely identifies each domestic financial institution.  This number, which may be obtained from the receiving financial institution, is necessary in order to complete a domestic bank-to-bank electronic transfer.  

 

What is an ACH?

 

The automated clearing house (ACH) system was developed by the financial industry in the early 1970s as an electronic alternative to checks.  ACH transactions received by the bank during the day are stored in batches for processing overnight.  The ACH system is designed for high volume, low value transactions in which payment information is processed and settled electronically.    ACH transactions generally settle one business day after the payment is initiated (example:  a payment initiated on Monday would be paid on Tuesday).  Both the receiving account and the originating account are settled on the same day so the delays associated with checks (mail, processing, funds availability and clearing) do not exist with an ACH transaction.

 

What is the difference between a wire and an ACH?

 

A wire is a real-time method of transferring immediate funds and supporting information between two financial institutions and is relatively expensive to use. An ACH is similar to a wire transfer only it uses a batch- process. Transactions received by the bank during the day are stored and processed later in batches and do not become available to a beneficiary until the next day. ACH transfers are less expensive than wire transfers.

 

What is a correspondent bank?

 

A correspondent bank, sometimes referred to as an intermediary bank, is a foreign bank’s representative that regularly performs services for a bank which has no branch in the beneficiary bank’s area. The most common service provided is to facilitate the transfer of funds.

 

Can I use the same ABA for an ACH and a wire?

 

Not necessarily.  When inquiring about an electronic funds transfer, be sure to specify as to whether you intend to send the transfer via ACH or wire.

 

When will my domestic wire be received by the payee?

 

A domestic wire will be posted to the receiving bank account the same day it is sent. 

 

When will my international wire be received by the payee?

 

Typically the funds will be credited to the receiving account within five business days depending on the country and the bank receiving the funds.

 

When will my ACH transfer be received by the payee?

 

An ACH (Automated Clearing House) credit will be posted to the receiving bank account the following business day.

 

My payee is stating they did not receive a wire.  What should I do?

 

Many times the amount sent is not necessarily the amount credited to the receiving bank account. As bank fees have been applied to the incoming amount, the actual credit will be less. The recipient should approach their bank with dates of when the funds could have been received and also state that the funds were sent from Washington State University’s bank, Bank of America. If the funds still cannot be located, the WSU department should contact Treasury Services so that we may pursue this matter through our bank.

 

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Treasury Management, PO Box 641025, Pullman, WA 99164-1025, 509-335-8154, Contact Us