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. Electronic Check

    A form of payment made via the internet that is designed to perform ...
  2. Bank Wire

    An electronic message system allowing major banks to communicate ...
  3. Check Clearing For The 21st Century ...

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

    An electronic transfer of funds across a network administered ...
  5. Fedwire

    A real-time gross settlement system (RTGS) of central bank money ...
  6. Capital Expenditure (CAPEX)

    Funds used by a company to acquire or upgrade physical assets ...
Related Articles
  1. Active Trading Fundamentals

    Using Logic To Examine Risk

    Know your odds before you put your money on the table.
  2. Credit & Loans

    Protect Yourself From HELOC Fraud

    Identity thieves are using home equity lines of credit to commit their crimes.
  3. Personal Finance

    Avoiding Online Investment Scams

    Find out how to spot internet fraud and protect your hard-earned money.
  4. Entrepreneurship

    JPMorgan vs. Goldman Sachs: A Tale of Two Stocks

    The performance of JPMorgan and Goldman has been impressive, but one has a slight edge.
  5. Stock Analysis

    How Citigroup Ensured That It's Too Big to Fail

    As a business, Citi has everything going for it. Scale, operational breadth...and the ear of key policymakers.
  6. Economics

    Mitigation Trade: Making Up For Environmental Harm

    Mitigation banking is a system by means of which the liability of ecological damage is transferred from the permittee to the mitigation banker through a system of credits and debits under regulatory ...
  7. Investing

    What's a Run Rate?

    Run rate is a term used to denote annualized earnings extrapolated from a shorter time frame. Management uses the run rate to estimate future revenues.
  8. Professionals

    Financial Accounting

    Financial accounting is the process of gathering, recording, summarizing and reporting financial data relating to a business. The ultimate goal is to accurately report the financial picture and ...
  9. Investing

    What are Direct Costs?

    Direct costs for finished goods refer to the items and services directly used in production. Other costs such as rent and insurance for the production site are indirect costs. These costs may ...
  10. Investing

    What is Contingent Liability?

    A contingent liability is an amount that might have to be paid in the future, but there are still unresolved matters that make it only a possibility. Lawsuits and the threat of lawsuits are the ...

You May Also Like

Hot Definitions
  1. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  2. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  3. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  4. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
  5. Accrued Interest

    1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, ...
  6. Absorption Costing

    A managerial accounting cost method of expensing all costs associated with manufacturing a particular product. Absorption ...
Trading Center