As defined by NACHA, IAT means a credit or debit entry that is part of a payment transaction involving a financial agency’s office that is not located in the territorial jurisdiction of the United States. For purposes of this definition a financial agency means an entity that is authorized by applicable law to accept deposits or is in the business of issuing money orders or transferring funds. An office of a financial agency is involved in the payment transaction if it:
- Holds an account that is credited or debited as part of the payment transaction;
- Receives payment directly from a Person or makes payment directly to a Person as part of the payment transaction; or
- Serves as an intermediary in the settlement of any part of the payment transaction.