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International ACH Transaction Basics


International ACH transactions are a lower cost, more efficient solution for sending international payments. Unlike sending a check, there are no collection fees and the likelihood of any lifting fees is greatly reduced.

2.1 Sending Payments

International ACH transactions work best for reoccurring payments that are under $100,000 and are always originated in U.S. dollars. When you send a payment, your account will be debited (for outbound credits) on the day after the payment submission, regardless of the destination credit date. However, if your account is prefunded, your payment will be debited at submission. If the receiving account is in local currency, then the receiving bank will do the currency conversion at their applicable rate.

It is important to note that IAT payments must be submitted and approved as single payments and file uploads are not supported.

NOTE: IAT may not be used for consumer remittance transfers.

KeyBank strongly recommends that the first payment you send to a receiver is a nominal dollar test payment as opposed to any critical payments. This is due to the fact that rules and laws are different in each country. Depending on the receiver, certain information – such as remittance notes - may or may not be retained during the transmittal.

2.2 Effective Date

On average, the effective date for payments is 1 to 3 days; this, however, may vary based on the receiving country. For example, Canada can be a one day effective date if the file is received by Key prior to 1 PM Eastern Standard time. Please note that OFAC screening, as well as the receiving country’s holidays, may impact payment receipt.

2.3 Return Payments

Return payment rules can vary significantly by country. Return dollar amounts may also not match the original payment amount sent due to currency conversion.