INCOMING PAYMENT SOLUTION FOR UNIVERSITIES

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1 INCOMING PAYMENT SOLUTION FOR UNIVERSITIES Having Trouble with Foreign Tuition Payments... China, India, Others? Come Learn Best Practices to Minimize Costs and Confusion. This presentation has been prepared solely for informational purposes and does not in any way create any binding obligations on either party. Relations between you and WUBS shall be governed by the applicable terms and conditions. No representations, warranties or conditions of any kind, express or implied, are made in this presentation.

2 UNIVERSITY SOLUTION AGENDA Western Union Business Solutions International Student Enrollment Data Traditional International Student Payment Process Challenges of International Payments for Students and duniversities iti University Success Story Questions

3 WESTERN UNION BUSINESS SOLUTIONS ABOUT US The world s leading non-bank provider of cross border business payments Global financial network spanning more than 200 countries and territories Deep expertise in moving funds around the globe with access to over 140 currencies Combined client base of over 95,000 customers Network of approximately 485,000 Agent locations Customized solutions for law firms, financial institutions, charity operations, and higher education

4 INSTITUTE OF INTERNATIONAL EDUCATION-DATA OPEN DOORS REPORT Open Doors report, published annually by the Institute of International Education (IIE) in partnership with the U.S. Department of State s Bureau of Educational and Cultural Affairs. Record number of foreign student enrolled in Higher Education institutions increased by 5% to 723,277 32% more international students studying at U.S. colleges and universities than there were a decade ago Graduate international enrollments has remained higher than undergraduate since 2001/02 International students contribute more than $21 billion to the U.S. economy 4

5 CURRENT PAYMENT METHODS PAYMENT METHODS FOR INTERNATIONAL STUDENTS Cash Credit Card Check/ACH (echeck) Wires

6 INTERNATIONAL STUDENT CHALLENGES SENDING INTERNATIONAL PAYMENTS US dollar is a foreign currency to international i student Student is required to pay costly international wire fee High retail exchange rates Face delays from payment details not being clearly passed to the university 6

7 CURRENT PAYMENT PROCESS SENDING PAYMENTS INTERNATIONALLY How student ss wire money internationally in today s world University Bank Student Bank UNIVERSITY BENE-DEDUCT FEES BENE-DEDUCT FEES STUDENT Intermediary Bank BENE-DEDUCT FEES Intermediary Bank TRACKING Very difficult to track status BANK FEES High intermediary bank fees SETTLEMENT Slow and controlled by banks 7

8 UNIVERSITY CHALLENGES RECEIVING INTERNATIONAL PAYMENTS FOR TUITION AND OTHER RECEIVABLES Limited or lack of remittance information for incoming payments, resulting in an inability to apply funds to student account Receive less than 100% of the value which the student has requested due to intermediary fees and incoming bank charges Limited or no payment automation Manual reconciliation 8

9 INCOMING PAYMENT SOLUTION LEVERAGE IN-COUNTRY BANKING NETWORK University Bank Student Bank UNIVERSITY PAYMENT IS SENT TO THE UNIVERSITY PAYMENT MADE TO IN COUNTRY BANKING NETWORK STUDENT Payment transferred internationally via in country banking network TRACKING Easy to track Funds deposited into banking network BANK FEES Fees are reduced or eliminated payment is a domestic transfer SETTLEMENT University is wired funds immediate credit of U.S. US Dollars to chosen account 9

10 INTERNATIONAL PAYMENT SOLUTION PROCESS FLOW Students, parents or a sponsor can make payments to a university provider from anywhere in the world, expressed in their chosen currency at their local bank or online University offers Student logs Student pays payment method into University in their home to overseas student website currency University is credited the full local currency amount Students goes to University it online portal and Student sends Western Union remits chooses to pay by: Foreign Currency promotes payment method to international students payment in local currency to in-country account identified funds, and reconciles payments for institution University Student Online Management Bank SIMPLE QUICK CONTROLLED SECURE AUTOMATED 10

11 INCOMING PAYMENT SOLUTION BENEFITS TO STUDENT In-country bank relationships Eliminates intermediary bank charge deductions Payments are seen as a local currency transaction Competitive wholesale exchange rates Reduces high international wire fees Rates held for specific time period Instructions can be ed to third party remitters Payment is applied to student account quickly 11

12 INCOMING PAYMENT SOLUTION BENEFITS TO UNIVERSITY Simplifies and streamlines the international payment process for the university Compliments and supports the university s online payment and enrollment strategy Minimize time and effort for reconciliation Earlier control of deposited funds benefits the cash position of the university Fully referenced payments and statements makes it easy to allocate the funds against student records Track payments easily Receive 100% of USD student transfer 12

13 INCOMING PAYMENT SOLUTION REPORTING CAPABILITIES Dedicated payment processing team to ensure timely and accurate payment postings Real-time reporting capability for pending and processed payments Flexible reconciliation statements available for stand- alone product or integrated within university ERP system Fully compliant with university regulatory policies: -PCI compliant -OFAC compliant -SAS 70 Type 1 and 2 13

14 MANAGING EXOTIC CURRENCIES CHINA /INDIA SOLUTIONS Largest population of international students are from India and China Largest population increase came from China (rose 24% - the 4 th consecutive year of double-digit increases) Common Problems Solutions to Consider 14

15 UNIVERSITY SUCCESS STORY PREVIOUS CHALLENGES Received multiple international wires payments into university bank account, which resulted in increased bank fees No clear way to identify incoming i payment and credit the funds to the appropriate student account Payment details were often times truncated or vital reference information eliminated Received less than what the student owed which led to campus absorbing bi loss or reissuing i amount due to student account Experienced delays in posting payment to student account 15

16 UNIVERSITY SUCCESS STORY BENEFITS BY USING INCOMING PAYMENT SOLUTION Payments are bundled together for one daily deposit by wire into our bank account reducing our wire fees Ability to clearly identify student details when payments are made makes crediting payments to student account easy and efficient Receive the full amount paid by the student Payments reconciliation data is no longer manual Funds are deposited into our bank account quickly so payments can be applied to student account Limits the calls and questions of Where is my payment? Immediate assistance when needed by phone or 16

17 IN-COUNTRY BANKING NETWORK NOT ALL PAYMENT PROVIDERS ARE THE SAME Global Clearing Banking Network automatically routes payments through local country clearing systems, providing fast settlement cycles. Payments are seen as a domestic payment which reduces student s s outgoing wire fee Ensures low error rates of payments Allows for faster identification of payment details

18 INCOMING PAYMENT SOLUTION SOLUTION SHOULD INCLUDE: In-country banking network -Reduced banking fees for students -Reduced banking fees for university Allows student to pay in their local currency Guaranteed rate for a specific time period University should be credited 100% U.S. Dollar equivalent immediately after incoming payment is reconciled Provider should reconcile incoming payment, not the university 18

19 INTERNATIONAL PAYMENT PRODUCT OFFERING FULL SUITE OF INTERNATIONAL PAYMENT SOLUTIONS Ability to send outgoing payments for other campus programs like Study Abroad, Summer Sessions, and faculty R&D projects Secure university Cash solution Forward Contract t capability to avoid market volatility Card offering for all international students that allow parents to load funds directly to prepaid card Incoming payment solution that offers ongoing customer service and marketing support to increase student participation i 19

20 FINAL THOUGHTS AND COMMENTS QUESTIONS? 20

21 THANK YOU Vicki Dolphens Regional Manager Midwest/Southeast Daniel Jurgens Regional Manager EastCoast business.westernunion.com

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