Banking today isn'twhat it used to be. Credit unions are expanding beyond traditionalaccounts and are not only looking for ways to increase wallet sharefrom existing members, but also attract new consumer and businessmembers.

Offering a full range of products and services, such as crossborder payments, is one way to accomplish this goal. There aremultiple payment methods: Which is the best for your members?

International wires have been the traditional choice for sendingUSD or foreign currency payments, as they are a secure and reliableoption. In comparison, the relatively new international ACHprovides the same capability but is more cost effective.

Both options involve two domestic payments: One that is receivedin your provider's USD account to pay for the transaction, and theother sent from your provider's foreign currency account to settlethe transaction. USD payments sent internationally are converted toforeign currency by the foreign bank if the receiving account isnot held in USD.

Both methods are perfect for Regulation E compliance as theyprovide exact exchange rates and totals for the disclosures.

Each method hasadvantages and disadvantages, as detailed in the graph shown atleft. (Click on the graph to expand.)

Offering only one method limits your ability to serve yourmembers, so it is important to understand their needs to be able toproactively select the appropriate payment method.

To determine the best option for your clients, you should takethe following into consideration.

Wires are best to use when:

• a lot of reference information must be included,
• an international payment must be sent in USD, and
• delivery timing is critical.

ACH is best to use when:

• cost is a major factor, or
• the amount is a low-value payment.

Members are loyal to their credit unions but if they require aproduct or service that you do not offer, they'll have no choicebut to look elsewhere. Credit Unions that do not offer cross borderpayments risk losing some of their most profitable members to theircompetition.

Partnering with a provider is a cost effective way to protectyour membership base.

Dan Caputo is vice president of global treasury solutionsfor AscendantFX Capital Inc. He can be reached at [email protected] or877-452-7186.