1. Moving funds between accounts or to a third party account at the same financial institution, also called a book transfer.
2. External transfers between an originating financial institution and receiving financial institution. The term funds transfer covers all types of interbank Electronic Funds Transfer , including the Federal Reserve's Fed Wire (Federal Wire); the interbank Automated Clearing House (Ach) system, and the Clearing House Interbank Payments System (Chips) in New York City, through which the majority of international trade payments involving U.S. Financial institutions and overseas banks are channeled. The Fed Wire and the CHIPS networks account for more than 90% of transfers of funds on an annual basis. All other forms of payment, including checks, cash, and credit cards, collectively account for less than 10% of total dollar value, but about 99% of the transactions in the U.S. Economy.
