Foreign Check User's Guide

Checks drawn on depository institutions outside of the twelve Federal Reserve Districts can be forwarded to the Charlotte Federal Reserve Bank Office for collection. The process is easy. Here is all you need to know to get started.

Deposit Information

Preparation of Foreign Items, Cash Letter Packaging Instructions, Forwarding Cash Letters for Processing and Collection

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Return Information

When we receive foreign items back on return, we return the items directly to you. The exchange rate in effect on the date of return is the rate that will be applied to the item.

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General Information

Deadlines, Availability, and Fees, Reconciliation of Credits (items deposited) and Debits (items returned), Exchange Rates

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Foreign Check Deposit Information

Preparation of Foreign Items

The preferred option for preparing foreign items for deposit is to encode your foreign checks for the face value of each item, e.g., a check written for 100 Eurodollars is encoded 100. The items are then listed on a tape, and the total amount is written on the foreign cash letter form. The final value of the check will be determined at the time it is paid at the paying institution. The final dollar value of the check will be determined by the exchange rate in effect at the time the check is actually received at the Charlotte Office.

Cash Letter Packaging Instructions

Once you have prepared your foreign items for deposit, prepare your foreign cash letter form. Foreign cash letter forms can be completed online and printed for use with your foreign check deposits to the Charlotte Office.

  • Please fill in all requested information.
  • As instructed above, on the form in the space provided write in the tape total for all items in the deposit.
  • Bundle the foreign cash letter form with the items and the tape listing that recaps the total number of items and dollars in the deposit.

Forwarding Cash Letters for Processing and Collection

Deposit your completed cash letter with your local Federal Reserve Bank. Staff at your local Fed will forward your deposit to the Charlotte Office to initiate collection. (Please place your cash letters in an envelope which is addressed to the Charlotte Office and clearly marked "FOREIGN ITEMS ENCLOSED.")

Note: Some depositors choose to mail their foreign deposits to the Charlotte Office via certified mail. If this option is selected, please use the following mailing address:

Charlotte Office
Federal Reserve Bank of Richmond
P.O. Box 30248
Charlotte, NC 28230

When we receive your deposit, it is verified and checked for any items that can be cleared domestically. If any are enclosed, we will return the item(s) and provide you with the appropriate routing number. For all remaining items to be sent for collection, the cash letter is balanced to the face value amount. An "Advice of Receipt" is generated and sent to you for your records, identifying the face value of your total deposit and confirming our receipt of your work.

Cash letters received by 10:00 a.m. EST at the Charlotte Office generally receive credit within two to twenty business days for all enclosed foreign checks. This credit appears as a separate transaction on your Federal Reserve account statement and is processed as a same day settlement entry from the Charlotte Office. (Note: Some foreign institutions take longer than twenty business days to pass credit, depending on the soundness of the institution and the "stability" of its home country.)

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Foreign Check Return Item Information

When we receive foreign items back on return, we return the items directly to you. The exchange rate in effect on the date of return is the rate that will be applied to the item. (Note: This could result in you getting an item returned for more/less than you were originally credited. We are required to pass this difference to you. How you choose to "book the difference" upon receipt is left to your discretion.) Examples of why you might receive an item on return are listed below, with suggestions for handling:

  • Endorsement Missing - Return to the depositor for the correct endorsement and redeposit.
  • NSF - Return to depositor with instructions for them to contact the drawee. The item may be redeposited.

It is important for foreign check customers to be aware that U.S. return item deadlines and policies do not apply to checks drawn on banks located in foreign countries. There often is no predictable pattern in some institutions' crediting and subsequent return practices. As such, where we are used to "timely" return of items, you could experience a return on an item weeks after the original credit is passed. Also, as a general rule of thumb, industry practice suggests that an item sent "on collection" is safe from return; however, this is not the case when the item is determined to be forged/fraudulent. In order to protect the interests of your institution and your customers, it is important when dealing with foreign items to "know your customer" and ensure that they are confident in the sources of foreign items they are depositing with you.

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Foreign Check General Information

Deadlines, Availability, and Fees

Applicable deposit deadlines, service fees, and credit availability are outlined on our Foreign Check Fee Schedule (XLS). (Note: Certain foreign items, collection items, and return items are subject to additional foreign bank charges. These charges are assessed by the foreign bank and taken from the credit that is ultimately passed to you by us.)

Check Fee Schedules

Reconciliation of Credits (items deposited) and Debits (items returned)

Some detailed reconciliation will be necessary to match your foreign check deposits (debits) to the credits that the Charlotte Office will pass back to you when your items clear, as well as to match returns on any previously cleared/credited items. To assist you in the reconciliation process, the Charlotte Office will provide you with an advice of credit that lists the value of the check in foreign currency when it was deposited and the dollar value of the item after it was collected. For a return, the Charlotte Office will provide you with an advice of debit that lists the face value of the check when it was originally deposited and the dollar value being debited back to you. This information will be provided by the check number on each check. We recommend you keep photocopies of each item that you deposit with the Fed, as copies will prove useful for reference during the reconciliation process.

Exchange Rates

Any questions about exchange rates should be directed to the Charlotte Office Foreign Check staff. Please refer to My FedDirectory Contact List.

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