Heather Flanagan NOAA AOD HQTR October 2003
Payment Types
•
US Dollar
– Check
• Treasury
• Name Only
– EFT – Electronic Funds
Transfer
•
Foreign currency
–Check
Heather Flanagan NOAA AOD HQTR October 2003
US Currency
Options
•
Treasury Check
–Treasury will send the
check to the vendor’s address in CAMS
which is obtained from the Vendor Profile
form.
•
Name Only Check
- Treasury will send
the check to Finance HQTR for Finance
to send to either the Line Office or
directly to the vendor via FedEx.
•
US Dollar Wires
– We pay the vendor
via bank wires to their bank.
Heather Flanagan NOAA AOD HQTR October 2003
Why should I send a
Treasury Check?
•
No rush for payment to reach vendor
•
The vendor does not have a bank
account
•
Every ASC can process this payment
Why Not Treasury Checks?
•
Tracking problems
-
There is NO WAY TO
TRACK once the check has left the Treasury until the
vendor cashes it.
•
Will it arrive safely?
Many
country’s mail systems are
inept and unreliable.
•
It takes too long.
Treasury will send the check to the
foreign country via regular mail. This may take weeks
depending on the location of the vendor.
•
Can they cash a US$ check?
It is
difficult for
some foreign vendors to cash a US $ check in their
country.
•
Human Error
– Checks get lost.
Heather Flanagan NOAA AOD HQTR October 2003
What does Finance need to
process Treasury Checks?
At a glance…
Treasury Checks
PROS
• No rush for payment
to reach vendor
• No bank account for
vendor
• Every ASC can
process this
payment
CONS
• Tracking Problems
• Will it arrive safely?
• It takes too long.
• Can they cash it?
• Human error
Why should I send a
Name Only Check?
•
Hard Copy
- The check is received by
Finance directly from the US Treasury,
allowing us a copy of the check.
Heather Flanagan NOAA AOD HQTR October 2003
Why Not
Name Only Checks?
•
Expense
– Did you know it costs approx.
$83.00 to process a Name Only check?
(not to mention all the FedEx fees which can be greater than $50)
•
Human Error
- Checks get lost.
•
Can they cash a US$ check?
It is
difficult
for some foreign vendors to cash a US $ check.
•
Unreliable
- Checks are one of the most
What does Finance need to
process Name Only
Checks?
•
Vendor Profile Form
- Accurate
name/address of vendor who will
cash the check.
•
Mailing information
– Where
would you like Finance to send the
check?
Heather Flanagan NOAA AOD HQTR October 2003
At a glance…
Name Only Checks
PROS
• Hard copy of
check
• FedEx will track
the shipment of
the check
CONS
• Expense
• Human Error
• Can they cash it?
Heather Flanagan NOAA AOD HQTR October 2003
Why Use US Dollar
Wires (EFT)?
• They are easy to track.
• There is an electronic paper trail
• They are quick to process
• Payments are received in only a few days
• Every ASC can make US Dollar payments
to foreign vendors.
• US accounts are made by CAMS
Why not a US Dollar
Wires (EFT)?
• Did you know it costs only $0.02 to
process an EFT?
• There are extra steps needed to obtain
banking information for these transfers.
• The only reason you would object to this
type of payment is due to a currency
issue.
Heather Flanagan NOAA AOD HQTR October 2003
What does Finance need
for
US Dollar Wires (EFT)?
• If payment is a US Bank you must obtain:
•
Bank Name
•
Account Name/Number
•
ABA#
All banking information must be provided directly from the
vendor
» Email from Vendor
» Vendor profile form
» Invoice from vendor
• If payment is made to a foreign bank,
there is additional information you
MUST
have in order to process these
payments!!!
What Foreign Bank
information is needed
to process a US Dollar
Wire?
• Full address of the bank
• Name on the bank account
• Account #
• Swift Code – similar to the US ABA# but has
letters/numbers and varies in length.
Heather Flanagan NOAA AOD HQTR October 2003
What is an
Intermediary Bank?
• An Intermediary bank is a US bank which can
transfer US funds to the Vendor’s bank.
• Each foreign bank has different US banks they may use.
– Myths about Intermediary Banks:
• The Vendor must have a bank in the US - False
• The Vendor must have an account with this bank. -False
• The Vendor’s bank must have a branch in the US. – False
– So, how do you know which US bank to use?
Where do you get the
Intermediary Bank
information?
The vendor needs to call their bank and
Ask 3 simple questions:
1. What US Bank do you accept US funds
from?
Bank of America, Standard Chartered Bank, JP Morgan, etc.
2. What is the City/State of this bank?
99.9% are NY/ NY
3. What is the 9 digit ABA # for this bank?
Heather Flanagan NOAA AOD HQTR October 2003
At a glance….
US Dollar Wires (EFT)
PROS
• Easy to track
• Quick to process
• Receipt of payments
is only a few days
• Every ASC can
make this type of
payment
CONS
• There are extra
steps required to
obtain additional
banking
information.
• Is there a currency
issue for the
Heather Flanagan NOAA AOD HQTR October 2003
Foreign Currency
Options
•
Foreign Currency Check
–The
check is issued by the “nearest” State
Department and sent to the Embassy
closest to the vendor.
•
Foreign Currency Wire
– We pay
the vendor via bank wire to their bank
Foreign
Heather Flanagan NOAA AOD HQTR October 2003
Foreign Currency Checks
3 Step process
1. The US Treasury will send the
foreign currency information to a
“local” State Department who
issues the check.
2. The check is sent to the Embassy
closest to the vendor.
Why should I send
Foreign Currency Checks?
• Customer Service
– The vendor requests a check payment
– The vendor requests foreign currency
• Other exceptions
Heather Flanagan NOAA AOD HQTR October 2003
Why Not
Foreign Currency Check?
• We are unable to convert US funds into a
foreign currency check.
• We must have a foreign currency amount
in order to use this payment type.
• If we are supporting a meeting and will contribute
US$25,000 to the meeting. We cannot accurately
convert the funds.
What does Finance need
to process
Foreign Currency Checks?
•
Vendor Profile Form
accurate
address/name of vendor who will
cash the check is a must.
• A specific amount of foreign
Heather Flanagan NOAA AOD HQTR October 2003
At a glance….
Foreign Currency Checks
PROS
• Customer Service
• Other exceptions
CONS
Foreign
Heather Flanagan NOAA AOD HQTR October 2003
Why should I send
Foreign Currency Wires
(EFT)?
• They are easy to track.
• They are easiest for our vendors
• They are quick to process
Why not a
Foreign Currency Wire?
• There really is no reason to object
unless the vendor prefers to
Heather Flanagan NOAA AOD HQTR October 2003
What does Finance need
for
Foreign Currency Wires?
•
Vendor Profile Form
• Full address of the bank
• Name on the bank account
• Account #
• Swift Code – similar to the US
ABA# but has letters/numbers
and varies in length.
At a glance….
Foreign Currency Wires
PROS
• Easy to track
• Easy for our
vendors
• Quick to process
• Quick receipt of
payment
CONS
• Is there a
Heather Flanagan NOAA AOD HQTR October 2003
Summary on Vendor
Services
1. Make it easy for our vendors.
a. See which way is easiest for our
vendor’s to receive funds.
b. See which way is quickest for our
vendors to receive funds.
Summary for NOAA
1. What is the most reliable way for NOAA to
send funds?
2. What is the cheapest way for NOAA to send
funds?
3. What can NOAA do to satisfy our customers?
4. Create an assurance with our international
vendors that NOAA is reputable and is
