When an IAT transaction has Remittance and Foreign Correspondent Bank information, what is the maximum for each?

The correct answer relates to the specifications set forth by NACHA (the National Automated Clearing House Association) regarding International ACH Transactions (IAT). For IAT transactions, the rules dictate that there can be a maximum of two remittance information segments. This segment is used to provide additional information about the payment, such as invoices or account numbers that the payment is intended for. This limit is established to ensure that the remittance details are succinct and manageable for processing.

For Foreign Correspondent Bank information, there is a maximum of three segments permitted. This part is essential in identifying the financial institutions that may facilitate the transaction across international borders. The additional segments can be useful in providing detailed routing and processing instructions relating to the transaction, ensuring clarity and efficient processing.

Understanding these specific limits is vital for compliance with NACHA rules and for ensuring that all necessary information is conveyed without exceeding allowable parameters. This knowledge helps maintain the integrity and smooth processing of international ACH transactions.