FedACH^® Services

FedGlobal^SM ACH Payments open a new world of opportunities

August 2009

Beginning in September, exciting new options will be available with FedGlobal ACH Payments, the new face of FedACH International^® Services. The International ACH Transaction (IAT) rule and format opens the door for inbound cross-border payments and enables expanded payment opportunities for financial institutions and their business customers around the world. Under the current ACH rules, financial institutions may send ACH payments to financial institutions in other countries, but may not receive them.

Expanding to new payment destinations

Beginning September 18, 2009, financial institutions may send and receive credit payments to and from Canada and Mexico, and will be able to send debits to Canada. The ability to send and receive commercial credit payments to and from Panama will also be available.

FedGlobal ACH Payments will expand its geographical reach to 12 additional Latin American countries in November. During the first quarter of 2010, FedGlobal ACH Payments will expand to 22 payment destinations throughout the Single Euro Payments Area and European Union.

Reaching the unbanked

An innovative option that will benefit financial institutions, as well as consumers, involves the way cross-border ACH payments are received. A payment is typically processed between two financial institutions and deposited in the bank account of a business or consumer, known as the receiver.

An additional payment transfer option enables a financial institution to send funds to an unbanked receiver to be retrieved at either a bank location or at a trusted, third-party provider participating in this service. Because the receiver is not required to have a bank account, this option expands access to cross-border ACH payments and allows financial institutions to offer more efficient options to consumers who wish to send funds to individuals in other countries. The IAT format also includes all the regulatory compliant data necessary for the participating receiving financial institutions or trusted, third-party provider to do their due diligence prior to presenting the funds to the receiver. This process, known as the Account-to-Receiver option, will be offered for payments to Mexico and other Latin American countries beginning in November 2009.

Broadening foreign exchange options

The final planned enhancement offers three foreign exchange options that will allow financial institutions to take advantage of the efficiencies offered by FedGlobal ACH Payments.

• Fixed-to-Variable (FV): U.S. dollars are converted to a variable amount of destination currency based on a highly competitive exchange rate. This option will be available for service to Canada, Europe, Mexico and some Latin American countries
• Fixed-to-Fixed U.S. Dollars (FF-USD): Payments are both transferred and received in U.S. dollars. This option will be offered for service to Canada and Panama
• Fixed-to-Fixed Foreign Currency (F3X): This option enables both the transfer and receipt of payments in foreign currency, allowing the originating depository financial institution (ODFI) to manage its own foreign exchange rate with its customers. This option will be available for service to Mexico. In early 2010, this option will be expanded to include payments to Canada and Europe

Check out the complete list of foreign exchange options, countries and availability dates.

Get a jump start … pre-enroll today

The best part about these enhancements is that you don’t have to wait until September to sign up. Financial institutions can pre-enroll in FedGlobal ACH Payments by completing Part 6A of the FedACH Participant Agreement (PDF). Follow the easy service setup steps to streamline your implementation process.

For more information about how our expanded suite of cross-border ACH payments can benefit your institution, please visit the IAT Resource Center or contact your account executive via My FedDirectory^®.

Top of Page