What is a Local USD Collection Account?
If your business receives USD payments from customers, marketplaces or other business partners in the US, you can use a Local USD Collection Account to collect these payments through the US domestic payment network.
This account supports incoming USD payments only. It does not support outgoing local payments from the US.
It supports domestic payment methods such as, ACH (NACHA) or Fedwire.
You can use the account to collect USD even if your business does not have a subsidiary in the US.
Eligibility
The Local USD Collection Account is available to clients of iBanFirst SA.
LTD clients cannot currently use this product.
You need an existing USD payment account with iBanFirst before you can activate a Local USD Collection Account.
You can use the account for professional payments only ( including payments from US customers, US business partners, Marketplaces such as Amazon or PayPal or other commercial platforms that pay you in USD.
Activation requirements
Your legal representative must sign the Local USD addendum as part of the activation process and within one month of activation. If you do not sign the addendum within the required timeframe, iBanFirst may close the service.
How to receive a USD payment
Share the Local USD Collection Account details (different of the international USD payment account) with your customer or business partner.
Ask the payer to use a supported domestic payment method, such as ACH or Fedwire.
Ask the payer to enter your business details and payment information exactly as provided.
Where available, ACH may be a suitable option for standard incoming payments.
The Local USD Collection Account and your international USD payment account share the same balance.
You cannot use the Local USD Collection Account to send payments through a US routing number or ABA number. Use your usual international USD payment account instead.
Transaction limits
The following limits apply to the Local USD Collection Account:
Maximum per transaction: 2.6 million USD
Maximum annual cumulative amount: 18 million USD
Contact your Account Manager if you expect to receive payments that exceed one of these thresholds.
Frequently asked questions
Do I need a US subsidiary?
No. You can use the Local USD Collection Account to collect USD payments without having a subsidiary in the US.
Does the Local USD Collection Account have a separate balance?
No. The account has separate collection details, but it shares the same balance as your iBanFirst international USD payment account.
Can I send a local US payment from this account?
No. The Local USD Collection Account is for incoming payments only.
Can I use the account to receive payments from individuals?
You can only use the account for business payments. You cannot use it to receive payments from individuals for personal, family or household purposes.
Can I use the account for cryptocurrency-related payments?
No. iBanFirst does not accept cryptocurrency-related flows through the Local USD Collection Account.
Do I need to report the account to the US tax authorities?
iBanFirst holds the collection account. Your own tax or reporting obligations depend on your business and tax situation. Contact a qualified tax adviser if you need guidance.