What is FedGlobal ACH?
FedGlobal ACH is a Federal Reserve service that lets US banks send cross-border payments through the ACH network instead of using wires. It is part of FedACH, the Fed's domestic ACH operator. It gives banks already using FedACH a low-cost way to reach payees in other countries.
The service is being shut down. On November 25, 2025, the Federal Reserve announced that FedGlobal ACH will be fully discontinued by the end of 2026. Its Foreign and Canadian Check Services are also being retired. The service stopped accepting new sign-ups as of that announcement. This is the most important fact for anyone evaluating FedGlobal ACH today.
How does FedGlobal ACH work?
FedGlobal ACH processes payments through one of two structures, depending on which currencies are involved.
- Fixed-to-Variable: The sender pays a fixed amount in US dollars. That amount converts to a variable amount of foreign currency, based on the exchange rate at the time. The US bank settles with the Federal Reserve in US dollars.
- Fixed-to-Fixed: Both sides of the payment use the same currency. This can be US dollars on both ends, or the foreign currency on both ends. Settlement with the Federal Reserve still happens in US dollars.
Both types use a special ACH format called an International ACH Transaction (IAT). This format carries extra data needed for cross-border payments, including the destination country and exchange rate details.
Which countries does FedGlobal ACH support?
The service centers on two country-specific programs:
- Mexico Service: Also called Directo a México. A joint program between the Federal Reserve and Mexico's central bank. Payments settle the same day, by 15:30 ET
- Panama Service: Payments settle one business day after the US settlement date
A separate, debit-only service connects to Canada. At its widest reach, FedGlobal ACH credit payments covered more than 30 countries. The Fed scaled this back over time as usage stayed low.
Why is the Federal Reserve discontinuing FedGlobal ACH?
Usage has stayed low since the service launched more than two decades ago. Meanwhile, other ways to send cross-border payments have grown fast. At a 2023 industry conference, a Federal Reserve representative said adoption never reached meaningful scale, even as competing services expanded around it.
This pattern is part of a bigger shift in cross-border payments. Wire transfers, stablecoin-based settlement, and direct connections to local payment rails have all become easier for banks and fintechs to access than a Fed-run gateway service.
What should banks using FedGlobal ACH do now?
Banks using FedGlobal ACH need a plan before it shuts down at the end of 2026. The main alternatives are:
- Wire transfer: Costs more per transaction, but does not depend on a single gateway service and covers more countries
- Local rail integration: Connects directly to a destination country's payment system, such as SPEI for Mexico. Usually done through a payment infrastructure provider rather than built in-house
- Stablecoin settlement: Increasingly used for cross-border payouts where speed and cost matter more than using a bank-operated rail
Compliance rules do not change during this transition. OFAC screening and other money transmission requirements apply to whatever rail replaces FedGlobal ACH, the same way they applied to the original service.
