Contact Us

ACH Payments Through TD Business Central: US-Canada Cross-Border Processing

Cross-Border Payment Snapshot

ACH cross-border payments through TD Business Central enable Canadian businesses to send and receive USD payments to and from the United States using the NACHA file format. Settlement takes 2-3 business days with automatic CAD-USD conversion at competitive FX rates. This channel costs significantly less than international wire transfers and is ideal for recurring US vendor payments, contractor disbursements and subscription billing.

If your business makes regular payments to the United States, you have two choices: international wire transfers at $30-$80 each, or ACH cross-border at a fraction of that cost. The math is straightforward. A company sending 200 monthly payments to US vendors saves thousands per month by switching from wires to ACH.

TD Business Central bridges the Canadian and American payment networks seamlessly. You upload a NACHA-formatted file, the platform handles FX conversion, compliance screening and routing through the US ACH network operated by the Federal Reserve. Your US recipients see a standard domestic ACH credit — no special action required on their end.

How ACH Cross-Border Payments Work

Cross-border ACH connects the Canadian ACSS clearing system with the US ACH network, enabling electronic fund transfers between the two countries without requiring SWIFT messaging or correspondent banking chains.

Outbound Payments to the US

When you send an ACH payment from TD Business Central to a US recipient, the transaction flows through three stages. First, TD debits your CAD or USD account and performs FX conversion if needed. Second, the payment enters the cross-border clearing system operated jointly by Payments Canada and the US Federal Reserve. Third, the payment settles into the recipient's US bank account as a standard domestic ACH credit.

The entire process takes 2-3 business days. Your US vendor sees the deposit with your company name and any remittance reference you include in the file. No intermediary banks. No correspondent charges. No surprises.

Inbound Payments from the US

US companies can send ACH credits to your TD USD account using a standard ABA routing number. TD provides you with a nine-digit ABA routing number and account number specifically for receiving US ACH payments. Inbound credits typically settle within 1-2 business days.

Once funds arrive in your USD account, you control the timing of conversion. Hold USD for future US-denominated expenses or convert to CAD through the TD Business Central FX module at a rate you choose. This flexibility eliminates forced conversion at unfavorable rates.

NACHA File Format for Cross-Border ACH

The NACHA (National Automated Clearing House Association) file format is the standard for ACH transactions in the United States. TD Business Central accepts NACHA files for cross-border payment origination.

File Structure

A NACHA file contains five record types: File Header (1), Batch Header (5), Entry Detail (6), Batch Control (8) and File Control (9). Each record is exactly 94 characters in fixed-width format. Addenda records (7) are optional and carry remittance information. TD Business Central validates every field against NACHA specifications at upload, flagging errors before submission.

Transaction Codes

ACH transaction codes determine whether a payment is a credit or debit and whether it targets a checking or savings account. Code 22 is a credit to checking, 32 is a credit to savings, 27 is a debit from checking and 37 is a debit from savings. For cross-border payments, use Standard Entry Class (SEC) code PPD for personal payments or CCD for corporate payments.

ACH vs Wire Transfer for Cross-Border Payments

Both ACH and wire transfers can move funds between Canada and the United States. The right choice depends on your urgency, volume and per-transaction budget.

Feature ACH Cross-Border International Wire
Settlement Speed 2-3 business days 1-2 business days (US)
Cost per Transaction $1.00 - $5.00 $30 - $80
File Format NACHA Manual entry or template
Batch Support Yes (up to 10,000 per file) Individual transactions
Recall / Return Return within 2-5 days Irrevocable once settled
FX Rate Locked at batch submission Locked at confirmation
Tracking Batch status + trace numbers SWIFT GPI real-time
Best For High-volume, recurring US payments Urgent, high-value single payments

Cross-Border Compliance and Regulatory Requirements

ACH cross-border payments operate under dual regulatory frameworks — Canadian and American. TD Business Central automates compliance screening to reduce manual burden while maintaining full audit trails.

Canadian Regulatory Obligations

Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA), TD Business Central automatically reports cross-border transactions exceeding $10,000 CAD to FINTRAC. The platform maintains records of all cross-border payments for the mandatory five-year retention period. Your compliance team can access these records through the reporting module at any time.

The Office of the Superintendent of Financial Institutions (OSFI) sets prudential standards that govern how TD processes and settles cross-border payments. These controls operate at the infrastructure level — your team benefits from the compliance without managing it manually.

US Regulatory Obligations

All US-bound ACH payments pass through OFAC (Office of Foreign Assets Control) sanctions screening automatically within TD Business Central. Payments to sanctioned entities, individuals or countries are blocked before submission to the ACH network. BSA (Bank Secrecy Act) reporting requirements are handled by TD as the originating depository financial institution.

For businesses in regulated industries — financial services, defense, energy — TD Business Central can apply enhanced due diligence workflows to cross-border ACH batches, adding an additional compliance review layer before release.

Common ACH Cross-Border Use Cases

Canadian businesses use ACH cross-border payments for a wide range of recurring US payment obligations. Here are the most common scenarios.

US Vendor and Supplier Payments

Pay US-based raw material suppliers, SaaS providers, logistics companies and professional service firms via ACH instead of wire. A manufacturer paying 50 US suppliers monthly saves over $2,500 per month in wire fees alone. Set up recurring ACH batches to automate the entire AP cycle for your US vendor base.

US Employee and Contractor Payroll

Canadian companies with US-based employees or independent contractors can process USD payroll through ACH cross-border. Recipients receive a standard domestic ACH deposit — no special banking arrangements needed on their end. Pair this with TD Business Central's payroll services for a unified domestic and cross-border payroll workflow.

US Customer Collections

Collect recurring payments from US customers using ACH debit transactions. SaaS companies, membership organizations and B2B service providers use this for subscription billing. US customers provide a pre-authorized debit agreement and TD Business Central handles the rest, including return item management and automated retry logic.

Intercompany Transfers

Multi-national companies with Canadian parent entities and US subsidiaries use ACH cross-border for routine capital movements, expense reimbursements and intercompany settlements. Lower cost and higher automation than wire transfers make this the preferred channel for predictable, recurring intercompany flows.

ACH Payment FAQs

ACH cross-border payments are available to TD Business Central commercial banking clients with an active USD or CAD operating account. Your business must be incorporated in Canada and have a valid Business Number (BN) with the CRA. Eligibility is subject to compliance review including anti-money laundering and sanctions screening. Contact your TD relationship manager to activate ACH cross-border capabilities on your account.

Currency conversion for ACH cross-border payments is handled automatically by TD Business Central at the time of batch submission. You can originate payments in CAD and have them delivered in USD, or vice versa. The FX rate is quoted in real time and locked when you authorize the batch. For batches exceeding $100,000 CAD equivalent, contact the TD FX desk for preferential rates.

ACH cross-border payments are subject to both Canadian and US regulatory requirements. FINTRAC reporting obligations apply to transactions exceeding $10,000 CAD. OFAC sanctions screening is performed automatically on all US-bound payments. TD Business Central maintains audit trails for all cross-border transactions as required by PCMLTFA regulations.

ACH cross-border batches submitted before 5:00 PM ET are processed in the next ACH clearing cycle. Standard settlement takes 2-3 business days from submission. Same-day ACH is available for the US domestic leg when submitted before 10:30 AM ET, though the cross-border component adds an additional business day for FX settlement and compliance processing.

Yes. TD Business Central supports inbound ACH credits from US originators. Your US business partners can send payments to your TD USD account using a standard US ABA routing number and account number provided by TD. Inbound ACH credits typically settle within 1-2 business days. Convert received USD to CAD through the FX module at your discretion.

Related Payment Services

ACH is one component of TD Business Central's comprehensive payment platform. Explore related services below.

Wire Transfers

For urgent or high-value international payments requiring same-day or next-day settlement to 140+ countries via SWIFT.

EFT Payments

Domestic Canadian bulk payments using CPA-005 format. The cost-effective choice for high-volume payroll and vendor runs within Canada.

Supplier Payments

Unified vendor payment management with scheduling, approval workflows and remittance advice across all payment channels.

Bill Payments

Pay Canadian utility bills, tax obligations and registered payees online with recurring scheduling.

Interac e-Transfers

Instant domestic Canadian payments for low-value disbursements up to $25,000 per transaction.

Fund Transfers

Internal transfers between your own TD accounts with zero fees and real-time settlement.