• Home - Help - FedACH International Frequently Asked Questions

FedACH International® Frequently Asked Questions

Federal Reserve Financial Services is committed to providing the answers and information you need. Answers to many of our customers most frequently asked questions can be found using the links below.

If your question is not answered by the information provided on the site, My FedDirectorySM provides a comprehensive list of service and support contacts who can assist you.

FedACH International Services Frequently Asked Questions (PDF)

Q: Who can participate in FedACH International Services?

A: FedACH International Services are open to all U.S. depository financial institutions (DFIs). DFIs interested in one or more services should contact their FedACH Sales Specialist who can lead them through the sign-up process.

Top of Page

Q: Where are the foreign exchange rates and spreads located?

A: FedACH International Services offer competitive foreign exchange rates. The daily and historical data on country rates can be found on the Federal Reserve Bank of Minneapolis (Off-site Link) Web site.

Top of Page

Q: Are there a minimum number of transactions required to participate in FedACH International Services?

A: There is no minimum requirement of transactions to participate in the FedACH International Services.

Top of Page

Q: What is the deposit deadline and how are FedACH International Services items to be handled?

A: As with domestic transactions, the deposit deadline for FedACH International Services items is 2:15 a.m. ET. Files are transmitted to the foreign gateway operators by 6:00 a.m. ET for further processing. Cross border entries can be contained in the same file as domestic ACH transactions, but must be batched separately.

Top of Page

Q: Which NACHA standard entry class codes are used for FedACH International Services items?

A: International payments are formatted using the Standard Entry Class (SEC) codes of PBR (Consumer Cross-Border) and CBR (Corporate Cross-Border). These SEC codes and fields in the Company/Batch Header Record allow cross-border payments to be readily identified. The Company/Batch Header Record contains information specific to international payments, including data related to foreign exchange, origination and destination currencies, and destination country.

Top of Page

Q: When does the foreign receiving financial institution receive settlement for the FedACH International Services items from the gateway operator?

A:

  • Canada Service:
    Fixed-to-Variable: On the U.S. settlement date
    Fixed-to-Fixed: One day after U.S. settlement date for one-day items;
    on the U.S. settlement date for two-day items
  • Mexico Service:
    By 15:30 ET on the same day of the U.S. settlement date
  • Transatlantic Service:
    One or two days after the U.S. settlement date (varies by country)

Q: What paperwork does an institution need to complete to participate in each of the FedACH International Services?

A: Prior to participation, a DFI should complete and return the Service Request Form to the FedACH Sales Specialist at its servicing Reserve Bank. You may complete one form for all or any of the FedACH International services. The forms are available in the respective Service Implementation Manuals for each partner country, which are available on the FedACH International Processing Resources.

Top of Page

Q: How does customer service work? Does the DFI need to contact the foreign gateway operator?

A: Inquiries should be directed to Reserve Bank staff that either answer the inquiry or contact the gateway operator on an institution's behalf. Institutions do not need to contact the foreign gateway operator. Once the gateway operator responds to the request, the Reserve Bank contacts the institution to provide the response.

  • Customers in the Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta and Chicago Federal Reserve districts should contact:

    Federal Reserve Bank of Atlanta
    FedACH Central Operations Support
    Local (404) 498-8902
    Toll Free 1-(866) 234-5681, Option 3
  • Customers in the St. Louis, Minneapolis, Kansas City, Dallas and San Francisco Federal Reserve districts should contact:

    Federal Reserve Bank of Minneapolis
    FedACH Central Operations Support
    Local (612) 204-5555
    Toll Free 1-(888) 883-2180, Option 3

Top of Page

Q: Do the Reserve Banks have standard Service Level Agreements for customer service with all gateway operators?

A: The Reserve Banks have executed standard service agreements with all gateway operators.

Top of Page

Q: Do OFAC Rules apply to FedACH International Services transactions?

A: OFAC rules apply to all payments. DFIs and their customers should consult with their internal compliance officer on this issue. Further information can also be found on the OFAC Web site (Off-site Link). In response to industry concerns about incoming payments from Europe, the Federal Reserve temporarily suspended the introduction of inbound payments until a broader resolution to this issue can be identified.

Top of Page

Q: What types of risk are associated with FedACH International Services transactions?

A: Federal Reserve Operating Circular 4 and the NACHA Operating Rules stipulate the rights, obligation and warranties with respect to the U.S. payments system. Differences in the U.S. and foreign systems may pose operational risk to an originating depository financial institution (ODFI). It is important that ODFIs understand the specific risks and requirements involved in originating international payments and should consult with risk management and legal staff before originating such payments. Credit risk also exists with respect to return items, including but not limited to return time frames, which may be extended due to differences in country return requirements. The originator will absorb extended temporal foreign exchange (FX) rate exposure and extended temporal credit risk. Originators should also note that the FX spread will be applied on both the originated item and the return.

Top of Page

Q: Why is the Federal Reserve supporting FedACH International Services?

A: FedACH International Services support the Federal Reserve System's strategic direction to improve the payments system and promote electronic payment services as an alternative to paper-based products. The services are intended to encourage the use of the ACH system for international payments by accelerating the clearing time and reducing the cost associated with these payments.

Top of Page

Q: Where can an institution get information about the foreign bank numbers and foreign account numbers?

A: Account number information for each service is outlined in the respective FedACH International Service Implementation Manuals.

Top of Page

Q: What is the difference between Directo MéxicoSM and FedACH International Mexico Service?

A: Dirécto a Mexico is the promotional name for the FedACH International Mexico Service that DFIs can use to better communicate and promote FedACH payments to Mexico. A promotional kit is provided to all institutions that enroll in the service.

Top of Page

Q: What is the difference between Canada ConnectionSM and the FedACH International Canada Service?

A: Canada Connection is the promotional name for the FedACH International Canada Service that DFIs can use to better communicate and promote FedACH payments to Canada. A promotional kit is provided to all institutions that enroll in the service.

Top of Page

Q: Should a DFI test with the Reserve Banks?

A: ODFIs are encouraged to test their ability to successfully send international transactions and are encouraged to test receiving returns. To schedule a test, institutions should contact FedACH Central Operations Support staff at the following sites:

  • Customers in the Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta and Chicago Federal Reserve districts should contact:

    Federal Reserve Bank of Atlanta
    FedACH Central Operations Support
    Local (404) 498-8902
    Toll Free 1-(866) 234-5681, Option 3
  • Customers in the St. Louis, Minneapolis, Kansas City, Dallas and San Francisco Federal Reserve districts should contact:

    Federal Reserve Bank of Minneapolis
    FedACH Central Operations Support
    Local (612) 204-5555
    Toll Free 1-(888) 883-2180, Option 3

Top of Page