Correspondent Services
International Check Collection
Foreign check collection at Catalyst is less expensive than the same service at a bank, and
Catalyst awards the fastest foreign check credit available.
Foreign checks are cashed items that must be processed on a collection basis because they are drawn on financial institutions located outside the United States, and cannot be collected through the Federal Reserve System. Using
Catalyst's foreign check collection service consolidates your credit union's item processing business with one provider.
Members that submit foreign items need only state their collection preference
when sending the item to Catalyst:
-
Provisional credit is the more popular of the two methods. Checks collected in this manner are processed in a cash letter submitted by
Catalyst. Even though collection of a foreign item may take weeks,
Catalyst members receive three-day availability on the check. Credit is based upon an estimated exchange rate, and may not be equal to the actual posted exchange rate on any given day.
- Foreign items sent to Catalyst on a collection basis receive credit when the paying bank actually pays the check. In this method, the checks are sent directly to the bank for direct payment. This process normally takes six to eight weeks. The advantage to this method is that if the check is returned unpaid or there is a change in the exchange rate, there are fewer accounting adjustments to make on the part of the credit union.
Foreign & Domestic Collection Cash Letter Form (in pdf format)
To put this service to work for your credit union, email an account executive at contactus@catalystcorp.org or call 800.442.5763.
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