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A: FedGlobal ACH Payments 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.
A: FedGlobal ACH Payments offer competitive foreign exchange rates. The daily and historical data on country rates can be found on the FedGlobal Foreign Exchange rate page.
A: There is no minimum requirement of transactions to participate in the FedGlobal ACH Payments.
A: As with domestic transactions, the deposit deadline for FedGlobal ACH Payments 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.
A: International payments are formatted using the IAT (International ACH Transaction) Standard Entry Class (SEC) code. This SEC code 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.
A: Prior to participation, a DFI should complete and return the Service Request Form to the FedACH Sales Specialist. The form is available in the Part 6A of the FedACH Participation Agreement, which is available here.
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.
A: Yes, the Federal Reserve Banks have executed standard service agreements with all gateway operators.
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.
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.
A: FedGlobal ACH Payments 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.
A: Account number information for each service is outlined in the respective sections of the FedGlobal Service Origination Manual.
A: Dirécto a Mexico is the promotional name for the FedGlobal 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.
A: Canada Connection is the promotional name for the FedGlobal 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.
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:
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