The Mechanism

One FX leg. No IOF on the second conversion.

BackChannel routes BRL→USD payroll through a structural single-leg FX model. No intermediary currency step. No second IOF event under code 7.11. The corridor is built around how BACEN classifies the transaction — one FX event, one taxable moment — not a workaround, a structural design choice.

0.38%
IOF — paid once, not twice
11:00
BRT same-day cutoff
Process

Five steps. One business day.

01

Schedule payroll in the BackChannel dashboard

Your finance team uploads the payroll file — contractor names, US bank routing numbers, USD amounts. BackChannel validates CNPJ, checks contractor ACH routing, and generates the BRL debit request. All before 09:00 BRT for same-day settlement.

02

Pix transfer initiates from your corporate BRL account

Your treasury sends BRL via Pix to BackChannel's chave Pix (CNPJ-registered). Pix settlement is instant — confirmed on BackChannel's side in seconds. No SWIFT. No T+2 wait. The IOF event on this inbound leg: 0.38% under IOF code 7.11.

03

Single FX conversion at mid-rate plus 0.25% spread

BackChannel executes one FX conversion: BRL to USD. Priced at mid-market rate plus the agreed spread (0.25% for Volume tier). This is the only FX event in the corridor. No second conversion. No second IOF trigger on the USD outbound wire.

04

USD wired to each contractor's US bank account

USD credits hit contractors' ACH accounts simultaneously. Zelle-compatible routing also supported. Contractors receive USD — no currency conversion on their side, no Brazilian tax complexity. Their client's payroll infrastructure is invisible to them.

05

Settlement confirmed by 11:00 BRT same business day

BackChannel's dashboard updates with confirmed ACH settlement timestamps. Your finance team gets a structured confirmation email with per-contractor breakdown, exchange rate applied, IOF paid, and CNPJ batch reference. Audit-ready output.

5-step payment flow from Brazilian company BRL Pix transfer through BackChannel FX conversion to US contractor USD bank settlement
IOF Anatomy

What you pay. What you save.

Scenario FX events IOF per leg Total IOF on R$100K
Traditional 2-leg processor 2 (BRL→USD→final) 0.38% × 2 = 0.76% R$760
BackChannel single-leg 1 (BRL→USD direct) 0.38% × 1 = 0.38% R$380
Your savings per R$100K run — — R$380 saved
R$190
Saved per month on R$50K payroll
R$760
Saved per month on R$200K payroll
R$1,900
Saved per month on R$500K payroll
Note: IOF code 7.11 applies to foreign exchange transactions. The single-leg structure reflects the operational reality of the transfer — one FX conversion event, not two. This is a structural approach to the corridor, not a legal exemption. Consult your tax counsel for entity-specific guidance.
Settlement Timeline

A single business day, start to settled

Same-day settlement timeline showing payment initiation through 11:00 BRT cutoff to confirmed USD delivery
By 09:00
Payroll uploaded
09:00–09:30
Pix inbound confirmed
09:30–10:00
FX conversion executed
By 11:00
USD settled, confirmed
FAQ

Common questions

IOF code 7.11 applies to foreign exchange contracts with natural or legal persons. The single-leg structure reflects the operational reality of the transfer — BackChannel executes one FX event. We describe the structural approach, not a regulatory exemption. Your tax counsel should review for entity-specific classification.
BCB Resolution 3.568 requires reporting of foreign exchange transactions. BackChannel's operational workflow is designed to align with these reporting obligations — each transaction generates a structured record for BCB reporting purposes. BackChannel supports your company's compliance workflow; your entity remains responsible for its own filings.
Yes. BackChannel serves Brazilian legal entities (Pessoa Jurídica). CNPJ verification is required at onboarding. This is both a regulatory requirement and a practical one — Pix transfers are CNPJ-routed.
Standard ACH ABA routing + account number. Zelle-compatible banks are also supported via the underlying ACH infrastructure. Contractors provide their routing details once; BackChannel stores them encrypted for future runs.
Standard Pix limits apply at the banking institution level (typically R$500K–R$1M per transaction for corporate accounts during business hours). For payroll runs above these limits, BackChannel can process in multiple Pix tranches within the same business day. Enterprise clients with R$500K+ monthly payroll typically pre-arrange with their bank for elevated limits.
Payroll uploaded after 09:00 BRT will be processed next business day. BackChannel does not process same-day transfers initiated after the cutoff — doing so would compromise the settlement SLA guarantee. Weekend payroll can be scheduled in advance.
Cancellation is possible before the Pix inbound is confirmed (typically within minutes of upload). After FX conversion executes, the transaction cannot be reversed — the USD has been committed. Contact [email protected] immediately if a cancellation is needed.
Contractor and company data is processed and stored within Brazil in compliance with LGPD (Lei Geral de Proteção de Dados). Contractor ACH details are stored encrypted with AES-256. No personal data is transferred outside the BRL-USD corridor without explicit consent. See our Privacy Policy and Compliance page for full details.

The mechanism is sound. Request access and run your first payroll within 3 business days.

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