Wire Fate Item

AAA

DEFINITION of 'Wire Fate Item'

An archaic term that refers to a request made by a bank when it sends a check or draft for encashment to a bank in a different jurisdiction, for prompt advice or notification of payment or non-payment. It is usually transmitted by bank wire or federal wire, which are high-speed electronic communication networks used for transmitting information on transfers of large dollar amounts and other extremely time-sensitive information.

INVESTOPEDIA EXPLAINS 'Wire Fate Item'

"Wire fate" acknowledgments are of critical importance, since notification of non-payment of a check needs to be made to the payee as soon as possible. The term "wire" has carried over from previous generations when most time-sensitive information was transmitted by telegraph, but seems increasingly archaic in the current era of instant communication.

RELATED TERMS
  1. Wire Transfer

    An electronic transfer of funds across a network administered ...
  2. Electronic Check

    A form of payment made via the internet that is designed to perform ...
  3. Check Clearing For The 21st Century ...

    A federal law that took effect on October 28, 2004, and gives ...
  4. Fedwire

    A real-time gross settlement system (RTGS) of central bank money ...
  5. Bank Wire

    An electronic message system allowing major banks to communicate ...
  6. Asset Valuation Review (AVR)

    A process that establishes an estimate of the value of a failed ...
Related Articles
  1. Using Logic To Examine Risk
    Active Trading Fundamentals

    Using Logic To Examine Risk

  2. Protect Yourself From HELOC Fraud
    Credit & Loans

    Protect Yourself From HELOC Fraud

  3. Avoiding Online Investment Scams
    Personal Finance

    Avoiding Online Investment Scams

  4. Variable Costs
    Investing

    Variable Costs

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center