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FedGlobal ACH

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Part of the FedACH system, FedGlobal ACH offers low-cost and efficient cross-border ACH payments.

What is FedGlobal ACH?

FedACH is the automated clearing house (ACH) service of the Federal Reserve Banks. As one of two primary ACH operators in the US, the FedACH system processes most commercial-bank-based ACH transactions. The Federal Reserve System (aka the “Fed”), composed of 12 banks and 24 branches, is the central banking system of the US government. FedACH acts as its ACH payment operator and handles millions of transactions each day.

FedGlobal ACH credit payments can be sent to 33 countries worldwide, plus ACH debit payments are available to Canada.

A list of available international destinations for FedGlobal ACH credit transactions. FedGlobal ACH debit transactions are also available to Canada.
Available international destinations for FedGlobal ACH credit transactions. FedGlobal ACH debit transactions are also available to Canada.

FedGlobal ACH Payments are designed to help those already using the FedACH service expand their global payment options by providing cost-effective, flexible, and easy-to-use cross-border ACH payments. There are three ways to make a FedGlobal ACH transaction.

Fixed-to-Variable USD to Foreign Currency 

In a fixed-to-variable FedGlobal ACH transaction US dollars are converted to a variable amount of foreign currency based on the exchange rate between USD and the destination country’s currency. Settlement between the US financial institution and the Federal Reserve Bank is in USD.

A look at the flow for a Fixed-to-Variable FedGlobal ACH transaction.
A look at the flow for a Fixed-to-Variable FedGlobal ACH transaction.

Fixed-to-Fixed (FF) USD to USD

In this type of FedGlobal ACH transaction, the payments are sent and received in US dollars. Settlement between the US financial institution and the Federal Reserve Bank is, again, in USD.

The transaction flow for a Fixed-to-Fixed USD GlobalACH Transaction.
The transaction flow for a Fixed-to-Fixed USD GlobalACH Transaction.

Fixed-to-Fixed (F3X) Foreign Currency to Foreign Currency

Payments are both transferred and received in foreign currency. The foreign exchange rate and settlement is managed and processed by participating U.S. financial institutions and the respective foreign gateway operators via their foreign correspondent banks.

A look at the flow for a Fixed-to-Fixed foreign currency GlobalACH transaction.
A look at the flow for a Fixed-to-Fixed foreign currency GlobalACH transaction.

Currently, there are different service areas for each of the three different FedGlobal ACH transaction types.

FedGlobal ACH transaction type availability by location.
FedGlobal ACH transaction type availability by location.

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ACH (Automated Clearing House) is a payment processing network that’s used to send money electronically between banks in the United States.

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An ACH credit refers to the process of electronically depositing, or “pushing,” funds into a bank account using ACH.

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In an ACH debit, funds are electronically withdrawn, or “pulled,” from a bank account using ACH.

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A Notification of Change (NOC) is used to notify the sender of an ACH payment to correct or change information related to a customer’s bank account.

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A return is a credit or debit entry initiated by the Receiving Depository Financial Institution (RDFI) that returns a previously originated payment to the Originating Depository Financial Institution (ODFI).

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ACH return codes identify the reason an ACH payment was returned by the recipient's bank. They make it easier to spot and resolve payment failures.

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An ACH reversal refers to an erroneous ACH payment that a payment originator requests to take back, or reverse.

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Credits and debits are two kinds of ACH transactions. Whereas a credit involves depositing, or “pushing,” funds into a bank account, for a debit, funds are withdrawn, or “pulled,” from an account.

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FedACH is the automated clearing house (ACH) service of the Federal Reserve Banks.

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Part of the FedACH system, FedGlobal ACH offers low-cost and efficient cross-border ACH payments.

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The two kinds of financial institutions in the ACH network are ODFIs (Originating Depository Financial Institution) and RDFIs (Receiving Depository Financial Institutions).

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ACH (Automated Clearing House) is a payment processing network that’s used to send money electronically between banks and financial institutions in the United States.

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An electronic funds transfer (EFT), also known as a direct deposit, is the digital transfer of money between bank accounts. As digital transfers, they reduce the need for manual input and paper documents.

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