Mellon Bank Corp. is participating in a U.S.- Canadian payments initiative of the Federal Reserve Bank of Minneapolis.
Mellon sends Canada-bound payments in U.S. dollars to the Minneapolis Fed, which converts them to Canadian dollars and routes them to Toronto Dominion Bank.
The Canadian bank delivers payments to the appropriate collecting bank in Canada as a gateway operator following cross-border payment rules set by the National Automated Clearing House Association. It also operates an ACH payments program with Wells Fargo & Co.
Sending ACH payments to Canada "provides an opportunity to expand the level of service to our customers by exploiting channels already in place," said Robert W. Stasik, executive vice president and head of Mellon Global Cash Management.
Mellon has also joined 32 other international banks in a separate pilot program to develop an ACH network called Worldwide Automated Transaction Clearing House. The Nacha-sponsored pilot will provide guidelines and a communications network for an international clearing and settling system.