How to Setup Foreign Bank Accounts in QuickBooks
To restrict unnecessary rejections or delays for electronic payments, you are asked to verify that your payment does not basically originate from and is not ultimately being transferred to a foreign bank account.
Why Intuit ask for this verification?
New bank reporting culture requires additional information for electronic payments that are made to or from foreign bank accounts.
These requirements are not supported by most senders and recipients of electronic payments as they are relatively new and therefore, they accept electronic payments that originate from or are sent to foreign bank accounts.
What does “originate from” and “sent to” mean?
If your bank is not a U.S. based bank or funds in your U.S.-based bank account come from electronic transfers from a foreign source then payments are considered to originate from a foreign bank account.
Payments are treated to be sent to a foreign bank account if the recipient’s bank is not a U.S.-based bank or if it has an actual agreement with a U.S.-based bank to automatically transfer funds from the recipient’s account to a foreign bank.
What should the user do if his transactions are from or to a foreign bank account?
For refunds from or payments to a state agency, contact the agency to enquire about the available alternatives.
For payments to contractors or employees, consider another payment option such as writing a check or contact us to discuss options for your payroll service or using a reloadable debit card.
What if the user is not sure whether his transactions are from or to a foreign bank account?
The financial institution provides the most accurate information on whether or not a transaction is affected by these new constraints on transfers from or to foreign bank accounts.