With global travel becoming a more common occurrence than ever before, increasing numbers of individuals are regularly using their domestic bank cards abroad to withdraw cash at ATMs. In an attempt to access cash conveniently whilst abroad via the ATM, customers had been consistently faced with high costs associated with such transactions as a result of the card scheme they use.
To overcome this challenge and the changing ways in which people explore the globe, CR2 has introduced Dynamic Currency Conversion. By setting your own exchange using a dynamic currency conversion tool, your bank can significantly reduce the costs for your clients, while also bringing new revenue to your bank directly.
How does Dynamic Currency Conversion work?
The functionality offered by our Dynamic Currency Conversion solution is flexible and mutually beneficial for both your bank and your customers. Upon inserting their card into your bank's ATM when abroad, your customers are prompted with a choice if they wish to be charged for the undertaken cash withdrawal transaction in the local currency or that of their origin country, at an your own supplied exchange rate. The post transaction issued receipt then contains detailed information about both currencies (local/origin) and the applicable exchange.
Dynamic Currency Conversion features
ATM User Interface
CR2's Dynamic Currency Conversion has an ATM user interface which is simple and straightforward for the cardholder. It has all of the relevant data, allowing your customer to decide whether they want to opt in or out of this service including:
• The amount requested in local currency
• The exchange rate being used
• Any commission/fee being charged
• The amount in the cardholders own currency
Your customer is also given a receipt with all of the relevant transaction data included so that they can keep records of the choice they have made and the transaction amount in their home currency.
All Dynamic Currency Conversion transactions are recorded along with the relevant details on the ATM Journal.
Your bank can generate reports indicating how many customers used this service, how many transactions were completed and the value of these transactions.
Your bank is free to choose which specific overseas currency you offer this service in. Any currency you do not choose will be sent to the scheme in the normal mode of dispensed currency.
With Dynamic Currency Conversion, your bank can use an external third party to offer online and up to the minute exchange rates. When a third party service is used, the settlement will be done between the bank and the third party using any commercial arrangements which have been agreed. BankWorld is configured to access the rates directly online with the third party provider. Alternatively, you can choose your banks own chosen BankWorld rates.
- Revenue Generation
The foreign currency exchange rate can be one of the most profitable parts of an international “not-on-us” card transaction. Using Dynamic Currency Conversion module the acquiring bank can ensure that revenue goes to the acquirer providing the service and not to the card issuer.
- New Locations
Locations with a high throughput of overseas visitors, such as airports, conference centres, and tourist spots which would otherwise not be viable ATM locations, can now be very profitable ATM locations.
- International Schemes
Dynamic Currency Conversion complies with the strict guidelines imposed by the major international card schemes for charging of fees and customer information in these transactions.
- Customer Choice
Although the service may generate revenue for the acquiring bank, it is important that the customer is able to choose whether they want to opt for the transaction to be completed in their home currency or not. Dynamic Currency Conversion provides the option.
- Third Party Settlement
Using an external third party to manage the volatile exchange rates and all of the various settlement arrangements means that the bank can reconcile these transactions in one simple arrangement.
- Existing Infrastructure
Dynamic Currency Conversion is a service that can be offered on the existing ATM fleet infrastructure without requiring hardware or network changes.