Dynamic Currency Conversion Staff Training Manual. Version 05/22/004

Transcription

1 Dynamic Currency Conversion Staff Training Manual Version 05/22/004

2 Table of Contents What is Dynamic Currency Conversion? What currencies can be converted?. 3 How DCC Works. 4 The Benefits. 5 What happens at the point of sale Customer experience? 7 Exchange Rates Elavon s Best Exchange Rate Guarantee. 9 What is Dynamic Currency Conversion? Dynamic Currency Conversion (DCC) is a convenient service that gives an international cardholder the CHOICE of paying for goods and services in either the local currency or the cardholder s own card billing currency. It is offered on Visa and MasterCard transactions only. DCC provides the cardholder with additional CHOICE, familiarity and confidence. It allows the cardholder to see the final price in their own card currency. The customer benefits from knowing exactly how much they are paying, without having to guess the approximate exchange rates. DCC Refunds.. 10 Preauthorisation.. 10 The Regulations.. 11 Suggested Phrases for Offering Cardholder s Choice & Improving Conversion Rates Advantages of choosing the currency conversion Frequently Asked Questions Summary.. 14 DCC Tools 15 To Summarise, Dynamic Currency Conversion (DCC): 1. Allows foreign cardholders to pay for goods in the currency of their card 2. Is offered on Visa and MasterCard transactions only 3. Provides the cardholder with CHOICE 4. The cardholder will see the transaction in their own billing currency and the local currency. DCC Resources

3 What currencies can be converted? Elavon s Dynamic Currency Conversion (DCC) service converts international Visa and MasterCard purchases into the following cardholder s home currency. Argentina Pesos (ARS) Iceland Kronur (ISK) Russia Rubles (RUB) Australia Dollars (AUD) India Rupees (INR) Saudi Arabia Riyals (SAR) Bahamas Dollars (BSD) Israel New Shekels (ILS) Singapore Dollars (SGD) How DCC Works Automatic. DCC doesn t require your staff to identify international credit cards and debit cards; the point-of-sale determines which cards qualify, then all your staff need to do is ask the customer if they want to pay in their home currency. Transparent. Each receipt shows the amount in your currency, the conversion rate, and the amount in the cardholder s home currency. Rebate. Funds are settled in your currency, and reports clearly indicate both currencies. Your monthly statement shows the DCC rebate earned and will deduct the amount from your total balance. Bahrain Dinars (BHD) Japan Yen (JPY) South Africa Rand (ZAR) Barbados Dollars (BBD) Kenya Shillings (KES) South Korea Won (KRW) Bermuda Dollars (BMD) Kuwait Dinars (KWD) Sweden Kronor (SEK) Brazil Reais (BRL) Malaysia Ringgits (MYR) Switzerland Francs (CHF) British Pounds (GBP) Mexico Pesos (MXN) Taiwan New Dollars (TWD) Canada Dollars (CAD) Morocco Dirhams (MAD) Thailand Baht (THB) China Yuan Renminbi (CNY) New Zealand Dollar (NZD) Trin. Tobago Dollars (TTD) ABC MERCHANT 45 CITY ROAD LONDON, EC4 45BL MERCHA NT ID: TERMINAL ID: DA TE : Mar, 09:55 13, 14 TI M E : BATCH: INVOICE: RRN: AUTH NO.: EHS VI DCC AID A ****** **** 0001 ICC EX PI RY: 1 2/ 15 SALE AMOUNT CONVERSION RATE COMMISSION TRANSACTION 6.38 CURRENCY C urrency conversion provided by Elavon M e rch an t Service s VERIFIED BY PI N Columbia Pesos (COP) Norway Kroner (NOK) Turkey Lira (TRY) X Czech Republic Koruny (CZK) Oman Rials (OMR) UAE Dirhams (AED) Danmark Kroner (DKK) Panama Balboa (PAB) Ukraine Hryvnas (UAH) Euro (EUR) Poland Zloty (PLN) US Dollars (USD) Hong Kong Dollars (HKD) Qatar Riyals (QAR) Venezuela Bolivares (VEF) I A C C E P T TH AT I HAVE BEEN O F F E R E D A C H O IC E OF C U R R E N C IE S F OR PAY MEN T. I A C C E P T T HE C O N V E R S I O N RATE A ND TH E F IN A L A M O U N T and TH AT T H E F IN A L S E L E C T E D T R A N S A C T I O N C U R R E C N Y IS E U R O. I A L S O A C C E P T TH AT MY C H O IC E OF C U R R E N C Y IS F IN A L. E x c h a n g e R a te M a rk -Up %. R e f e r e n c e R a te P r o v i d e d by U.S. B a n c o r p MERCHANT COPY TC: 3 E D A B D 5 Hungary Forint (HUF) Romania New Lei (RON) Sample of DCC receipt 3 4

4 The Benefits DCC delivers real benefits to you and your international customer. Transactions abroad can be confusing and daunting for a cardholder. Giving cardholders the choice to pay in their card currency can help break down these barriers. This service offers the cardholder a real CHOICE and provides them with the full information on their transaction so that they can make an informed decision. Benefits You Simple application for staff who interact with the cardholder No additional costs or activation fees Additional revenue opportunity* Reduced disputes and chargebacks Consolidated reporting in single and multiple currencies Improved service for international customers To Summarise: Customers are more likely to use DCC if you are able to explain how it works and the benefits: Cardholders can pay in their home currency. Easy to see the actual cost of transaction no hidden fees. Conversion rates are competitive. Don t need to wait for your statement to see the exchange rate. Can claim business expenses quickly. Cardholder Benefits Price certainty at the point of purchase - the cardholder knows exactly what will appear on their bank statement Very competitive exchange backed by Elavon s Best Rate Guarantee, no exchange rate surprises Dual currencies printed on their card receipt Their card issuing bank should not apply any additional fees The cardholder pays the exchange rate fee in any circumstance so why not do DCC? * DCC Pays You Back Elavon shares the income generated by processing foreign transactions with you. We rebate a percentage of the conversion rate to you on your monthly processing statement. The more international business you do, the more you improve your bottom line. 5 6

5 What happens at the point of sale Customer experience? How to Offer DCC 1. Insert your customer s card into the card reader - it tells you if the card is eligible for DCC 2. Ask the customer if they would like to pay in the local currency or in their home currency 3. If requested, you would then explain the benefits of DCC* 4. Tell the customer that the card machine can do the conversion right now at a competitive exchange rate 5. If Customer says YES, simply press accept on the card reader 6. The transaction is completed using DCC and a DCC receipt is generated. 7. If the customer says No, the transaction continues as a normal domestic credit card transaction. Example of the service in operation (Card Present) 1. Cardholder presents Visa or MasterCard for payment. 2. The card is swiped/inserted/keyed on the point of sale. 3. The amount, in the local pricing currency, is entered into the point-of-sale. 4. If a DCC eligible card is detected, the currency recognition software identifies the card billing currency of the card and displays a pop-up or screen indicating the foreign currency and amount. This screen/pop-up prompts the operator to offer the cardholder the opportunity to pay in either their card billing currency or the local currency. 5. Where requested, other information on the DCC service must be made available to the cardholder (amounts, exchange rate, rate source, rate margin). 6. Inform the cardholder that DCC is an optional service, explain the benefits of DCC and ask the cardholder how they would like to pay. 7. If DCC is accepted, the transaction will be converted at a rate of exchange on the day the transaction. 8. Receipts will be generated showing the amount in the local pricing currency, the exchange rate, the foreign currency amount, the rate source, rate margin, DCC provider as well as an acknowledgement that the cardholder had a choice to pay in the local pricing currency and that their choice is final. Cardholder Purchase Elavon converts to cardholder currency Visa/MasterCard Cardholder s Bank Cardholder Statement * Explaining the benefits of DCC: Very competitive exchange backed by Elavon s Best Rate Guarantee Cost certainty No hidden charges - the cardholder knows exactly what will appear on their bank statement Their card issuing bank should not apply any additional fees 7 8

6 Exchange Rates Exchange rates are set daily on Monday to Friday. Saturday and Sunday will use Friday s rates. They are automatically updated on the point-of-sale. The wholesale rates of exchange are sourced from US Bank rates, are competitive, and are in line with those used by card issuers. The margin applied is indicated on the receipts and is in line with the margin applied by Credit Card issuers. The rate of exchange applied to a transaction is printed clearly on converted credit card receipts. Elavon s Best Exchange Rate Guarantee Elavon aims to always provide the best rate. If a cardholder obtains a better exchange rate on another transaction on the same day from their card issuer, Elavon will refund the difference! DCC Refunds Visa and MasterCard have mandated that refunds must, where possible, be performed in the currency of the original transaction, i.e. if the cardholder paid in US$ then the refund must be conducted in US$. Preauthorisation You should explain the DCC service at check-in or at time of car hire. The card billing currency can be checked at this time and the cardholder can be offered the choice of being billed in their card billing currency. The cardholder can be given the day s exchange rate as an indication but should be advised that the rate may be different at the time of final payment due to currency fluctuations. If a cardholder changes their mind about the currency that they use to settle their final bill, the cardholder should be advised that the original preauthorisation will be reversed but could remain as a shadow on their account until such time as the card issuer removes it. The final amount in the new currency is then sent for approval. DCC provides full disclosure of the cost in the local and the foreign currency as well as of the exchange rate. This information allows the customer to assess the competitiveness of the rate at the point-of-sale. NOTE: Exchange rates may be communicated to the cardholder before DCC transactions take place. In most cases the information will appear on the customer screen. If the customer returns home to find that their issuing bank offered a better exchange rate on the day of purchase then they can make a claim to Elavon to have the difference refunded. To make a claim they just go to or

7 The Regulations Under Visa and MasterCard regulations, it is imperative that every international cardholder whose card is available for conversion is offered the CHOICE of completing the transaction in either their card billing currency or the local currency. The cardholder s billing currency (transaction currency) must be confirmed before authorisation takes place. The point-of-sale will automatically recognise the card billing currency and prompt the operator to offer choice where applicable. Important Information - Local Audits; how to avoid card scheme fines It is important that you are aware of the rules set out by the card schemes: A DCC transaction should not be converted automatically into a cardholder s local currency without the customer s approval. The card schemes are concerned about compliance with these rules and from time to time may undertake audits in order to monitor the acceptance of DCC transactions. Failure to follow these processes could result in complaints from your customers and could result in fines being levied by Visa or MasterCard on your business s transactions. Suggested Phrases for Offering Cardholder s Choice & Improving Conversion Rates Will I put that through for you in (home currency) so you get our Best Rate Guarantee? At today s rate, that equates to xxxx Would you like your final bill printed in (your card currency) (your card currency)? Your bill comes to (local currency) which is equal to (your card currency). Is that ok? This takes the exchange rate risk out of your transaction This amount is guaranteed to appear on your card statement Please confirm your selection on the PIN pad The exchange quoted replaces fees usually applied by your card issuer on your monthly card statement Advantages of choosing the currency conversion The customer knows exactly how much they are paying, without having to guess approximate exchange rates It avoids any nasty surprises when they get home & see their card statement It completely removes any exchange rate risk from the transaction The exchange rates are updated daily ensuring competitive rates are offered to cardholders Why ask the cardholder to pay in your currency when they can pay in theirs? The cardholder pays the exchange rate fee in any circumstance so why not do DCC? To summarise, Dynamic Currency Conversion (DCC): NOTE: The cardholder has the right to refuse payment if they feel they are not offered a choice

8 Frequently Asked Questions Customers will often have questions regarding DCC. This is not a negative response, in fact if a customer is asking you questions it often means they are interested. Below is an example of questions that may be asked and a suggested response. What is DCC? Elavon s Dynamic Currency Conversion (DCC) is a service that enables you to offer international Visa and MasterCard cardholders to pay in their home currencies, allowing them to see the true cost of their transactions at the time of purchase rather than when their credit card bill arrives. Elavon offers this currency conversion service in 47 currencies from all over the globe. How does DCC work? DCC does not require your staff to identify international credit cards and debit cards transactions re initiated as normal and the point-of-sale determines if presented cards qualify. When a DCC eligible card is presented, the customer is prompted by the point-of-sale, or asked by the clerk, to authorise the conversion in the cardholder s home currency and a DCC receipt will print. Each receipt shows the purchase in your currency, the conversion rate, plus the travelling cardholder s home currency amount. This makes it easier for travellers to reconcile purchases when paying card balances. Funds are settled in your currency and your reports clearly indicate both currencies. Why should my customers opt for DCC? Exchange rates always apply when an international cardholder pays in a foreign currency. Elavon aims to provide the best exchange rate at all times and even guarantees best rates to your customers. Therefore DCC makes it easier for international travellers to reconcile purchases when paying card balances as they will see exactly how much they are paying and what the transaction will cost in their home currency before they pay. How does DCC Work? The card reader detects eligible cards and alerts you to that fact that the transaction amount can be converted. You must always remember to ask the customer if they would like to pay in their home currency or in local currency. Each receipt shows the amount in local currency, the exchange rate applied and the amount in the card holder s currency. How do I offer DCC to my customers? Follow these steps: 1. Insert your customer s card into the card reader - it tells you if the card is eligible for DCC. 2. Ask the customer if they would like to pay in the local currency or in their home currency. 3. Tell the customer that the card machine can do the conversion right now at a competitive exchange rate. 4. Customer says YES - simply press accept on the card reader. Summary Now you have explored the benefits of Dynamic Currency Conversion (DCC) you should understand: 1. The importance of CHOICE 2. The customer benefits by being able to pay for their goods in their Card Billing Currency 3. DCC is fully transparent 4. Exchange rate set daily (Mon- Fri) 5. Credit cards supported are Visa & MasterCard 13 14

9 DCC Tools DCC Point of Sale Display Best Rate Guarantee Programme Information DCC Resources For further information or reading please refer to the following Elavon web pages: On the benefits and Best Rate Guarantee Programme: Training aids If you need to refresh your memory or train new staff check out Reporting To maximise your rebate, we recommend you monitor your DCC performance through your imerchantconnect account, Elavon s all-inclusive FREE online reporting tool Customer Support UK: Ireland: Copyright Elavon Financial Services Limited 2014.