FedACH^® Services

Taking payments to many new countries in 2010

November 2009

On September 18, 2009, the electronic payments industry passed a key milestone: the implementation of NACHA’s IAT rule, which creates vast new opportunities in international payments. Another significant enhancement is the introduction of FedGlobal^SM ACH Payments, the new face of FedACH International^® Services. FedGlobal ACH Payments builds upon years of cross-border ACH service offerings and provides you and your business customers with a quick, efficient, low-cost option to send payments internationally.

Expanding to new destinations

The expansion of FedGlobal ACH Payments into new regions represents the first exciting enhancement, complementing our flagship services to Canada and Mexico. Panama is the first of the new destinations offered by FedGlobal ACH Payments, with commercial payments to Panama introduced in September. Service expansion will continue in the first quarter of 2010, when access to 22 European countries from the Single European Payments Area (SEPA) is added, along with access to 12 additional countries in Latin America. Credit payments will be offered for all countries, along with debit payments to Canada.

Adding new payment delivery options

Additional enhancements in payment delivery will help expand electronic payments access to receivers in 2010. These enhancements will offer increased flexibility to financial institutions and consumers, and help to extend the reach of automated clearing house (ACH) payments into new areas. More information will be available at a later date.

Offering foreign exchange options

The third enhancement provides new foreign exchange options for financial institutions in the transfer and receipt of cross-border payments.

• Fixed-to-Variable (FV): With this option, a fixed amount of U.S. dollars are converted to a variable amount of destination currency based on a competitive exchange rate. Settlement in U.S. dollars is between participating U.S. financial institutions and the Federal Reserve Banks.
• Fixed-to-Fixed U.S. Dollars (FF-USD): With this option, payments are both transferred and received in U.S. dollars.
• 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.

Our new foreign exchange options will be available for select countries and were designed to provide opportunities for you to take advantage of the efficiencies offered by FedGlobal ACH Payments.

Providing resources and support

As our suite of services expands, we will also provide you with new tools to support your implementation of cross-border ACH payments. Customizable marketing materials are available to help you grow your cross-border payments business and educate your customers about your new service offerings. An expanded foreign exchange resource center allows you to calculate settlement amounts for varying exchange rates and provides history of exchange rates. The FedGlobal ACH Payments Service Origination Manual (PDF) and Frequently Asked Questions also provide handy references for implementation of new services.

You can sign up for FedGlobal ACH Payments by completing Part 6A of the FedACH Participation Agreement. Just follow the service setup steps. If you have remaining questions, contact your FedACH sales specialist.

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