Cut-off time
Cut-off time is the deadline by which a payment system, bank or provider must receive an instruction. Instructions received later move to the next settlement cycle or business day.
How it works
The CPMI defines a cut-off time as the deadline an infrastructure sets for accepting transfer instructions. On Fedwire, customer transfers must be sent by 6:45 p.m. ET. Bank transfers have until 7:00 p.m. ET, when the service closes. The Federal Reserve Banks may extend these times.
Cut-offs stack up across a payment chain, from your bank to the system to the payout partner. Stablecoin providers have them too. Circle settles domestic wires the same business day only if received before its daily cut-off. Missing one deadline can push a payout back a full business day.
Time zones narrow the window further. The CPMI notes that limited overlap in operating hours delays settlement between distant countries. Pitfalls include using one global cut-off calendar and forgetting holiday schedules. Fund each corridor before the earliest deadline in its chain.
Example
Illustrative example: A London firm must fund a US partner before Fedwire's 6:45 p.m. ET customer cut-off. With both cities on standard time, that is 11:45 p.m. in London. Its own bank requires instructions by 9:00 p.m. London time. The working deadline is therefore 9:00 p.m., not 11:45 p.m.
Frequently asked questions
What happens if we miss a cut-off?
The instruction usually processes in the next cycle or business day. That can delay payouts and leave a corridor short. Track every deadline in the chain and fund ahead of the earliest one.
Do all rails we use share the same cut-off?
No. Each system and provider sets its own. Fedwire closes at 7:00 p.m. ET on business days, while issuers and banks publish their own deadlines. Keep a cut-off calendar per corridor.
Related terms
Sources
- CPMI glossary · Committee on Payments and Market Infrastructures, Bank for International Settlements
- Fedwire Funds Service and National Settlement Service Operating Hours · Federal Reserve Financial Services
- How minting works (Circle Mint) · Circle (developer documentation)
- Steady as we go: results of the 2023 CPMI cross-border payments monitoring survey (CPMI Brief No 5) · Bank for International Settlements
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