FedACH^® Services

Grab your ticket to new cross-border destinations

March 2010

Cross-border payment opportunities have expanded rapidly over the past year since the introduction of FedGlobal^SM ACH Payments, the new face of FedACH International^® Services. FedGlobal ACH Payments build on years of cross-border automated clearing house (ACH) service offerings and provide you and your business customers with an efficient, low-cost option to send payments internationally. Following the implementation of the International ACH Transaction (IAT) code last September, commercial payments to Panama became available to customers. Payments to many more countries will be available soon.

All aboard for new global destinations

Exciting changes for cross-border payments are expected in the coming months, when ACH credit payments to 22 European countries from the Single European Payments Area (SEPA) will be available, along with payments to 12 additional countries in Latin America. Payments to our flagship payment destinations, Mexico and Canada, will continue to be offered as well.

Delivery options for receivers around the world

FedGlobal ACH Payments customers will have expanded electronic payments access to receivers around the world via two new payment delivery options:

• Account-to-Account - Sending payments between two bank accounts
• Account-to-Receiver - Sending funds from a customer’s account to be retrieved by any receiver at either a participating bank location or at a trusted, third-party provider in certain receiving countries. This option offers increased flexibility to depository financial institutions and consumers and helps to extend the reach of ACH payments

Foreign exchange options for select countries

New options will be available to FedGlobal ACH Payments customers for the transfer and receipt of cross-border payments to select countries. The following options were designed to allow you to benefit from the efficiencies offered by FedGlobal ACH Payments:

• Fixed-to-Variable (FV) - Converts U.S. dollars to a variable amount of destination currency based on a competitive exchange rate. Settlement between participating U.S. depository financial institutions and the Federal Reserve Banks is in U.S. dollars
• Fixed-to-Fixed U.S. Dollars (FF-USD) - Allows payments to be sent and received in U.S. dollars. Settlement between participating U.S. depository financial institution and the Federal Reserve Banks is in U.S. Dollars
• Fixed-to-Fixed Foreign Currency (F3X) - Allows payments to be sent and received in the same foreign currency. Settlement occurs in foreign currency between the U.S. Originating Depository Financial Institution (ODFI) and the foreign gateway bank
  

Next stop on your itinerary

To begin your FedGlobal ACH Payments implementation, contact your FedACH Sales Specialist or complete Part 6A of the FedACH Participation Agreement. The FedGlobal ACH Payments Service Origination Manual (PDF) and Frequently Asked Questions can also help guide you. Customizable marketing materials are available to help you launch your new cross-border payment offerings and educate your customers about the new services your institution offers. And, our Foreign Exchange Resource Center allows you to calculate settlement amounts for varying exchange rates and provides history of exchange rates for additional reference.

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