Abstract: A system and method of transferring funds from a depositor (payer) to a recipient (payee) comprises at least one account issuer issuing a deposit account located at a first financial institution and a withdraw account located at a second financial institution. A first reserve account is established at the first financial institution and a second reserve account is established at the second financial institution. An online processing system automatically detects when funds are deposited into the deposit account and automatically transfers the funds from the deposit account to the first reserve account. The funds from the first reserve account are transferred to the second reserve account, accounting for any foreign currency exchange rates. The system electronically processes a request from the recipient to transfer at least a portion of the funds located at the second reserve account to the recipient.