Expanding business operations to an international scale brings a host of new challenges and considerations. Currency conversion typically lands a spot somewhere towards the top of the list.
This past week we were contacted by an international apparel manufacturer who had the business need to process credit card transactions in Canadian currency while having the funds settle in their bank account in US Dollars.
Enter – Dynamic Currency Conversion by CyberSource and First Data!
The Dynamic Currency Conversion (DCC) capability provides a value-added service to your international customers. With DCC enabled, both you and your customers know the precise amount of the sale, which means no more waiting or guessing at conversion rates or fees.
CyberSource offers First Data’s DCC service, providing your international customers the choice to pay in their credit card currency yet still funding you in U.S. dollars. The DCC service currently supports 24 of the world’s most widely accepted currencies, and provides a way to enhance customer satisfaction and easily extend your market reach without ever leaving home.
How it Works
The DCC process is simple, and no knowledge of exchange rates is required:
1. Visa® or MasterCard® account numbers are entered into your DCC-enabled application
2. CyberSource will determine if the customer’s card was issued outside of the U.S.
3. The foreign exchange rate, updated in real-time (derived from a published wholesale interbank rate, plus a foreign currency selection fee), is used to calculate the foreign currency amount
4. The converted amount is displayed to the consumer, and they are offered a choice of paying in U.S. dollars or the foreign transaction amount.
5. If the foreign currency is selected, the receipt will reflect the exchange rate including fees, the U.S. dollar amount and the foreign transaction amount
To assist with tracking, reports are provided detailing both the U.S. and foreign currency transaction amounts.
In addition, DCC reporting allows you to track and manage your foreign transactions, respond to chargebacks, and calculate the revenue your business generated from offering DCC processing.
So how does Krengeltech fit in?
Our Cybersource module for IBM i provides a tightly integrated API set for businesses running on IBM i to quickly implement credit card communication processes within their existing RPG environments.
Have a current or future need for Dynamic Currency Conversion?
Chat with us about your specific requirements or contact us via email at email@example.com!