IAT (International ACH Transactions)

IAT is a type of payment within the ACH network that enables the electronic transfer of funds between financial institutions in different countries. IAT payments are typically used for business-to-business payments but can also be used for consumer payments in certain scenarios. IAT transactions typically take 1-3 days to settle, depending on the originating and receiving countries.

Just like with domestic ACH transactions, when an IAT payment is processed, the originating financial institution sends an IAT payment file to its local ACH operator. The ACH operator then routes the payment through the international ACH network to the receiving financial institution. IAT payments usually come with lower fees than wire transfers and are better suited for recurring payments, such as subscription services or invoices for common goods and services. In addition, IAT payments offer payment reversal capabilities not offered by wires.

You may have to use IAT for the following scenarios:

• You're a US domiciled company sending a payment to a client living outside of the US, and the client has an account with an offshore bank.
• You're a US subsidiary of an offshore corporation, but your company's main functions are processed through the foreign parent company. The US domiciled vendor payment instruction is sent by the parent company using their foreign bank, and the funds will be debited from the foreign bank account.
• You're a domestic Money Transmitter sending money outside the US.
• You're a foreign Money Transmitter sending money outside the US.