I am an ACH Software or Service Provider

How Does it Work?

As a software supplier or service provider, you will need to understand the data field requirements to properly code and update the ACH software packages you provide to depository financial institutions (DFI) for processing both inbound and outbound transactions. All U.S. DFIs are affected by this rule, even those that do not currently send or receive international ACH transactions, as any DFI is a potential receiver of an IAT entry. Additionally, it is important to review your institution’s OFAC compliance obligations as it pertains to international transactions.  For more information, review the IAT Readiness Webinar (PDF) presentation developed by the Federal Reserve Banks for ACH software suppliers on January 14, 2008.

Step by Step Preparation

The steps below outline the activities necessary to prepare for the implementation of IAT on September 18, 2009. Please print the IAT Readiness Checklist for Software Suppliers and Service Providers (PDF) that includes the following steps to help you in managing the completion of each item.

Step 1 – Review the materials provided for financial institutions

Take this opportunity to review the materials and preparation procedures developed for DFIs. This research will be helpful as you develop a plan of action in partnership with your customers. Materials you may want to review include the NACHA Operating Rules, IAT FAQs, IAT Readiness Checklist for RDFIs (PDF), and the IAT Readiness Checklist for ODFIs (PDF).

Step 2 – Attend Training and Education Opportunities

Sign up now to take advantage of a number of IAT Teleseminars hosted by the Federal Reserve Banks that will provide valuable information and quarterly updates on the implementation of the new SEC code. These seminars are offered at no cost and are available to anyone at your institution.

Step 3 – Contact Your Customer Financial Institutions

Reach out to any customers who have not already contacted you regarding new software updates or software patch availability to discuss and schedule installation, testing and cutover dates for any necessary updates as needed.

Step 4 – Finalize IAT Software and Service Testing and Readiness with DFI Customers

Congratulations — your DFI customers will now be ready to originate and/or receive IAT entries.

Training Resources

To learn more, listen below to a three part presentation on "Understanding New Requirements in the ACH Network: International ACH Transaction IAT," presented by Elena Whisler and John Morris from the Retail Payments Office at the Federal Reserve Bank of Atlanta. The information is provided in an audio format with corresponding slides for each section. To help you follow along, we recommend you first open the presentation slides prior to clicking on the corresponding audio:

Additional Resources

Do you still have questions? Please review the Frequently Asked Questions document for commonly asked questions about IAT. You may also contact us t to submit a question not found on the FAQs and will receive an email response regarding your inquiry.

To receive the latest news about FedACH Services and the IAT Resource Center sign up for Email Alert Notification and make sure to select FedACH Services.

For more information about FedACH International Services or IAT, visit the service offerings pages , contact your FedACH Sales Specialist or contact us now and receive an email response to your immediate questions.

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