Canada Connection

The United States' "neighbor to the north" is quickly becoming one of the, if not the, most important trading partners for the state of Kansas, and much of the U.S.  Many U.S. companies, and even individuals, send payments to Canada daily - credits such as payroll, pension, annuity or utility payments, or debits from consumers and/or companies in Canada for bills owed in the United States.  Making daily payments via check or wire, or even maintaining an account at a Canadian FI, can carry a substantial cost.  Now, thanks to the Federal Reserve Banks partnership with Scotiabank (The Bank of Nova Scotia), U.S. depository financial institutions have a cost-effective, convenient, efficient solution for sending cross border payments to Canada...Canada Connection. 

Canada Connection provides...

• A cost-effective alternative to other payments, offering low per-item fees and competitive foreign exchange rates
• The ability to send both debits and credits to Canada via the ACH network
• Access to any financial institution thanks to Scotiabank
• Delivery of payments in either U.S. or Canadian dollars
• Certainty of clearing and settlement times]
• No deductions from payment amount

How it works...
Canada Connection works in conjunction with APEX-ACH, Kansas Corporate's online ACH origination and receipt system.  Both debit and credit ACH items bound for Canada can be originated through the Canada Connection program.  All transactions are originated in U.S. dollars and then your member can decide the currency that will be applied when received in Canada - either U.S. or Canadian dollars. 

Scotiabank serves as the receiving gateway operator for Canada Connection clearings, and is linked to every financial institution in Canada.  The tremendous volume of cross-border payments handled by Scotiabank, and their aggregate value, allows them to provide a competitive bulk foreign exchange rate to all who use this service.  Scotiabank handles all currency exchanges and format conversions for processing by the Canadian clearing system. 

Settlement of Canada Connection transactions to the ODFI is in U.S. dollars and a low cross-border surcharge is assessed.  If payments are fixed-to-variable (originated in U.S. dollars and paid in Canadian), a competitive foreign exchange rate, as previously noted, is also applied.  Settlement is timely, payable to the Canadian FI either on the U.S. settlement date or one day after, depending on the type of transaction.  With the addition of the Morning Post Service, you can even arrange for early morning delivery of payroll and pension payments to recipients in Canada.  By using certain formatting criteria, you can ensure funds availability by the opening of business on requested due dates, similar to how salary and pension payments are generally treated by U.S. ACH participants.

For credit unions already utilizing APEX-ACH through Kansas Corporate, the functionality to begin submitting ACH credits and debits to Canada is already available to you.  And, Canada Connection transactions are especially simple thanks to added efficiencies within the APEX-ACH system, including...

• Streamlined file processing - cross-border file formatting requirements are already incorporated into APEX-ACH
• Completed testing requirements - the required ACH Operator and Originating Gateway Operator (OGO) tests have been conducted on behalf of all APEX-ACH users
• OFAC checks - all cross-border ACH items originated via APEX-ACH receive an automatic OFAC check

Mere completion of a couple quick FRB forms is all that separates your members from fast, efficient ACH Transactions with Canada.  Even your marketing efforts have been taken care of, as marketing materials and information sheets have already been created and are available along with the enrollment forms.

Not an APEX-ACH user?  An internet based product, APEX-ACH eliminates expenditures for additional software or hardware and reduces implementation and ongoing expenses.  It is a flexible, user-friendly, low-cost ACH solution for your credit union, backed by comprehensive training and ongoing support from our knowledgeable staff and Accredited ACH Professional (AAP).  And, now it provides even more with the addition of cross-border transactions to Mexico, via Directo a Mexico, and now Canada!

For more information regarding APEX-ACH and Canada Connection, or to request the necessary forms and marketing materials for this program, contact Circe Gleeson, Marketing Manager, at 800.721.2677 | Ext. 106, or email marketing@kansascorporate.org.