In an IAT transaction, how many Addenda Records can be used for Remittance?

In an IAT transaction, how many Addenda Records can be used for Remittance?

• A. 1
• B. 2
• C. 3
• D. 5

Answer: (B)

In an International ACH Transaction (IAT), there is a specific structure that includes provisions for addenda records, which are used to provide additional information about the transaction. For remittance purposes, a maximum of two addenda records can be utilized. The first addenda record can contain essential transaction details, such as the invoice number or any other information that the originator needs to communicate to the receiver. The second addenda record can be used for additional remarks, offering further clarification about the payment or remittance. This allows both parties to have sufficient context surrounding the financial transaction, improving accountability and transparency. Having two addenda records is designed to accommodate the typical needs for remittance information without overwhelming the recipient with excessive data. Therefore, the selection of two addenda records aligns with the requirements established by the NACHA Operating Rules for IAT transactions.

In an International ACH Transaction (IAT), there is a specific structure that includes provisions for addenda records, which are used to provide additional information about the transaction. For remittance purposes, a maximum of two addenda records can be utilized.

The first addenda record can contain essential transaction details, such as the invoice number or any other information that the originator needs to communicate to the receiver. The second addenda record can be used for additional remarks, offering further clarification about the payment or remittance. This allows both parties to have sufficient context surrounding the financial transaction, improving accountability and transparency.

Having two addenda records is designed to accommodate the typical needs for remittance information without overwhelming the recipient with excessive data. Therefore, the selection of two addenda records aligns with the requirements established by the NACHA Operating Rules for IAT transactions.