Download Dynamic Currency Conversion Staff Training Manual

Dynamic Currency Conversion
Staff Training Manual
Version 05/22/004
What is Dynamic Currency Conversion?
Table of Contents
What is Dynamic Currency Conversion? ……..…………….……….… 2
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.
What currencies can be converted? …………….……………………… 3
It is offered on Visa® and MasterCard® transactions only.
How DCC Works …………………………………………………….… 4
The Benefits ……………………………………………………….…… 5
What happens at the point of sale – Customer experience? …………… 7
Exchange Rates ………………………………………….……………... 9
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.
Elavon’s Best Exchange Rate Guarantee ………………………………. 9
DCC Refunds ……….…………………………………………………. 10
Preauthorisation ……………………………………………….………. 10
The Regulations ……………………………………………………..
11
Suggested Phrases for Offering Cardholder’s
Choice & Improving Conversion Rates ………………………..……... 12
Advantages of choosing the currency conversion ……….…………….. 12
Frequently Asked Questions …………………………………………... 13
Summary …………………………………………………………….. 14
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 Tools …………………………………………………………… 15
DCC Resources …………………………………………………... …. 15
2
What currencies can be converted?
How DCC Works
Elavon’s Dynamic Currency Conversion (DCC) service converts international
Visa and MasterCard purchases into the following cardholder’s home currency.
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.
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)
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)
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.
ABC MERCHANT
45 CITY ROAD
LONDON, EC4 45BL
MERCHA NT ID:
TERMINAL ID:
DA TE :
Mar, 13, 14
BATCH: 000028
RRN:
40720921449
771000794
771000794284
TI M E :
09:55
IN V OICE :
000012
AUTH NO.: 405508
EH S VI D C C
A I D A 00 00 00 00 310 10
****** **** 0001
EX PI RY: 1 2/ 15
ICC
SALE AMOUNT
CONVERSION RATE
COMMISSION
TRANSACTION
CURRENCY
£5. 00
1.275946
0. 00
€ 6.38
C urrency conversi on provi ded by Elavon
M e rch an t S er vi ce s
VERIFIED BY PI N
Columbia Pesos (COP)
Norway Kroner (NOK)
Turkey Lira (TRY)
Czech Republic Koruny (CZK)
Oman Rials (OMR)
UAE Dirhams (AED)
Danmark Kroner (DKK)
Panama Balboa (PAB)
Ukraine Hryvnas (UAH)
Poland Zloty (PLN)
US Dollars (USD)
Euro (EUR)
X_______________________________________
I A C C E P T T H AT I H A V E B E E N O F F E R E D A
C H O I C E OF C U R R E N C I E S F O R PAY ME N T.
I A C C E P T T H E C O N V E R S I O N R A TE A N D
T H E F I N A L A M O U N T a n d TH AT T H E F I N 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 T H AT MY C H O I C E
OF C U R R E N C Y IS F I N A L .
Exc h an ge Rate M a rk -U p 3 .5 0 % . Re fer en ce
R a t e P r o v i d e d by U . S . B a n c o r p
MERCHANT COPY
Hong Kong Dollars (HKD)
Qatar Riyals (QAR)
Hungary Forint (HUF)
Romania New Lei (RON)
3
Venezuela Bolivares (VEF)
TC:
3 E D 5 98 7 6 1 5 4 8 A B D 5
Sample of DCC receipt
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.
To Summarise:
Customers are more likely to use DCC if you are able to explain
how it works and the benefits:
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.
• Cardholders can pay in their home currency.
Benefits You
• Conversion rates are competitive.
• Easy to see the actual cost of transaction – no hidden fees.
• Simple application for staff who interact with the cardholder
• Don’t need to wait for your statement to see the exchange rate.
• No additional costs or activation fees
• Can claim business expenses quickly.
• Additional revenue opportunity*
• Reduced disputes and chargebacks
• Consolidated reporting in single and multiple currencies
• Improved service for international customers
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
What happens at the point of sale – Customer experience?
How to Offer DCC
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.
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.
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
Exchange Rates
DCC Refunds
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.
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$.
The margin applied is indicated on the receipts and is in line with the margin
applied by Credit Card issuers.
Preauthorisation
The rate of exchange applied to a transaction is printed clearly on converted
credit card receipts.
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.
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!
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 www.elavon.co.uk/dcc or www.elavon.ie/dcc
9
10
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.
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?
The cardholder’s billing currency (transaction currency) must be confirmed before
authorisation takes place.
• “At today’s rate, that equates to xxxx
The point-of-sale will automatically recognise the card billing currency and prompt the
operator to offer choice where applicable.
• “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”
• “Would you like your final bill printed in
(your card currency)”
(your card currency)?”
• “This amount is guaranteed to appear on your card statement”
• “Please confirm your selection on the PIN pad”
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.
• “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.
11
12
Frequently Asked Questions
How does DCC Work?
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.
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.
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.
13
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
14
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:
www.elavon.co.uk/dcc
www.elavon.ie/dcc
• Training aids – If you need to refresh your memory or train new staff check out
www.elavon.co.uk/welcome/get-started/dynamic-currency-conversion
www.elavon.ie/welcome/get-started/dynamic-currency-conversion
• 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: 0845 608 0120
Ireland: 1850 20 2120
Copyright © Elavon Financial Services Limited 2014.