Core Financial Modules

[tramirez]

I have a client that is interested in processing ACH payments from a Canadian bank to Canadian vendors in MAS 90. Is anyone currently doing this?

[BigLouie]

Welcome to the Sage Community. It is my understanding that ACH is strictly a US banks process.

[tramirez]

Yes it is.  The client has a need to pay Canadian vendors that have Canadian bank accounts.  The Royal Bank of Canada has said that it will accept a NACHA layout for processing electronic payments.  The problem they face in using the direct deposit\ACH functionality in 92/200 is the vailidation program that ensures that the routing number entered for a vendor meets US bank standards.  I know this can be modified to bypass the validation if needed. I was just looking for any other options. 

[bean_counter]

I found the above information while looking for a way to pay our Canadian supplier via ACH.  It doesn't help me unfortunately since their account is with BMO, but maybe it will help someone else.  Of course, I would test this thoroughly first!

Royal Bank of Canada

IAT Payment Scenario

Royal Bank of Canada (RBC) provides their customers with the ability to send and receive U.S. ACH transactions through the routing number for the RBC New York branch (026004093).   The RBC account number structure is 12 characters, the first 5 identify the branch number and the last 7 are the individual account number.  For clients using the RBC NY branch RTN, once the transactions are received from the ACH Operator by the NY branch they are sorted by account number and any ACH transactions that have been received that are destined to branches other than 01269 are routed to the appropriate Canadian branch and the funds moved to RBC Canada. 

The transactions processed by RBC’s NY branch are forwarded to Canada.  These are international ACH transactions and are the type of transactions that OFAC wants identified with the new IAT SEC code.  U.S. financial institutions have been unaware that they are actually originating or receiving international ACH transactions and do not have sufficient information to perform an adequate OFAC review of the payment transaction.