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FedACH Services

Introducing FedGlobalSM ACH Payments: A new world of options in cross-border ACH

March 2009

Over the past year, depository financial institutions have been busy preparing for the new International ACH Transaction (IAT) rule (Off-site Link) developed by NACHA—The Electronic Payments Association® set for September 18, 2009, which will introduce significant changes to the global payments landscape. While such preparations have certainly been important for the Federal Reserve Banks, we have also been hard at work developing a suite of enhancements that will revolutionize cross-border ACH payments.

FedGlobal Services LogoLater this year, we will introduce FedACH customers to the new face of FedACH International® Services: FedGlobal ACH Payments. Bringing a wealth of new options and opportunities to meet customers’ global payment needs, FedGlobal ACH Payments are being developed with payment flexibility and efficiency in mind.

Beginning in September, customers will be able to both send and receive ACH credit payments as the first phase of the FedGlobal ACH Payments expansion begins to take shape. Commercial credit payments to and from Panama will be available beginning in September 2009, and existing service to Canada and Mexico will continue to be offered. Then, by early first quarter 2010, FedACH will expand its suite of services to more than 60 countries, in regions such as Europe and Latin America.

In an effort to better understand our customers’ cross-border payment needs, the Federal Reserve Banks will conduct a brief survey at NACHA’s upcoming PAYMENTS 2009 conference (Off-site Link), April 5 – 8, in Orlando, Florida. Stop by booth #1007 to provide feedback on our growing suite of services.

FedGlobal ACH Payments will offer the flexibility of payment delivery and foreign exchange options. Not only will FedGlobal ACH Payments continue to offer standard payments between bank accounts, they will also provide a new option that allows funds from accounts at a U.S. depository financial institution to be retrieved by unbanked receivers at either a bank location or at a trusted, third-party provider. This new option will expand individual (receiver) access to cross-border ACH services to select country destinations.

Three exciting, new foreign exchange options will allow customers with distinctive needs to take advantage of the efficiencies offered by FedGlobal ACH Payments.

  • The traditional foreign exchange option, in which U.S. dollars are converted to a variable amount of the destination currency based on a highly competitive exchange rate, will continue to be available for many destination countries
  • A second option, which allows for both the transfer and receipt of payments in U.S. dollars, will continue to be available for Canada and will also be expanded at a future date to include more country destinations where U.S. dollar accounts are permissible
  • Finally, a third option will be offered that allows for both the transfer and receipt of payments in foreign currency. This enables the originating depository financial institution to manage its own foreign exchange rate with its customers

As the range of your cross-border payments needs expands, the Federal Reserve Banks will continue to support you with marketing tools to help promote your services and expand your cross-border payments business.

Watch for updates and announcements in the coming months regarding our expanded suite of cross-border ACH services, and learn how to put the power of FedGlobal ACH Payments to work for your institution.

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