In an IAT transaction, which Addenda Record includes the Transaction Type Code?

In an IAT (International ACH Transaction) transaction, the Transaction Type Code is included in the First IAT Addenda Record. This is essential for identifying the specific type of transaction being processed and determines how the transaction should be handled throughout the ACH system.

The First IAT Addenda Record serves as an introduction to the additional details contained in subsequent addenda records. The incorporation of the Transaction Type Code here allows the receiving financial institution to correctly interpret the nature of the transaction and take appropriate actions based on the code specified.

This structure is integral to maintaining clarity and ensuring that international transactions follow the proper protocols. It also facilitates compliance with regulatory requirements and standards that govern ACH transactions. By placing the Transaction Type Code in the First IAT Addenda Record, it ensures that this vital information is immediately accessible to all parties that may need to process or record the transaction.