FedACH Service Speeds U.S.-to-Mexico Remittances
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Beginning in July, funds availability on automated clearinghouse (ACH) payments from the United States to Mexico through the FedACH InternationalSM Mexico Service will drop from two days to one day. This enhancement will occur at no additional charge to financial institutions.
No institutional changes necessary
“Reducing ACH processing time and making funds available faster is a significant benefit for financial institutions and their consumer and corporate customers,” said Richard Oliver, Federal Reserve Bank of Atlanta executive vice president and manager of the Federal Reserve’s Retail Payments Office. “Importantly, financial institutions that now offer the service will not be required to make any changes to receive this benefit.”
Any Mexican bank account reachable
Through the FedACH InternationalSM Mexico Service, the Reserve Banks and Banco de México, Mexico’s central bank, work cooperatively to provide ACH payment services between financial institutions in the United States and Mexico. The service, launched in February 2004, allows U.S. originators to send a payment to any bank account in Mexico. Currently the service facilitates about 23,000 ACH payments monthly between payors in the United States and payees in Mexico.
Payments from the United States to Mexico continue to grow in popularity. Based on Banco de México estimates, personal payment remittances between the two countries increased from around $13 billion in 2003 to more than $16 billion in 2004.