Visa to allow dynamic currency conversion at ATMs worldwide

Source: National ATM Council

Effective April 13, 2019, all ATM owners and operators will be able to offer Dynamic Currency Conversion (DCC) services to their customers in the U.S. DCC is permitted today by MasterCard at U.S. ATMs and represents a meaningful revenue stream for many ATM providers.

To date, Visa network rules have prohibited ATM deployers from providing DCC services, which policy was reversed by yesterday's announcement.

This decision follows a global Petition to Visa spearheaded by NAC and submitted in October 2017, requesting Visa's authorization for DCC at retail ATMs in the U.S. Visa's announcement yesterday grants the NAC Petition and expresses an intent to allow DCC at ATMs globally. We now must await the details behind Visa's global DCC implementation authorization, to become effective April 13, 2019. This will coincide with issuance of the revised Visa Rule Book.

NAC thanks Euronet Worldwide, Monex Financial Services, Planet, and CIBC, the leading DCC providers who spearheaded NAC's working group initiative that led to Visa's approval. NAC also thanks the hundreds of NAC member companies and individuals who signed the Petition and provided the grassroots support that helped secure yesterday's result. NAC likewise appreciates the consideration Visa has given to our DCC Petition and the decision to authorize this positive service for U.S. ATM consumers and deployers.

NAC's Petition to Visa garnered close to 1,000 signatures from the U.S. and abroad, including both industry participants and consumers. Along with the Petition, NAC supplied Visa with ample data showing that DCC was a "consumer friendly" service that enjoyed broad usage and significant repeat cardholder usage in jurisdictions where DCC is allowed elsewhere in the world.

Based on the Petition and its supporting information, as well as other available data, Visa decided to allow consumers the option to have DCC services available at ATMs everywhere. When DCC becomes available at U.S. ATMs in April, Visa cardholders will have more choices, Visa acknowledged. The Company said it will publish additional DCC guidance in Visa Business News, where the updated rules, pricing and instructions on how to certify ATM solutions will be available to consumers, merchant acquirers and ATM deployers. Please stay tuned for further information. 

Comments: (1)

A Finextra member
A Finextra member 01 October, 2018, 14:12Be the first to give this comment the thumbs up 0 likes Great, so consumers will have the options to either pay what is typically a 2.75% to 3% mark up on the Visa interbank FX rate to their card issuer (like it is now) or in practice pay an even greater mark up to the acquirer for the benefit of knowing how much their account will be debited in their home currency. This isn’t really increasing consumer choice, just increasing acquirer revenue. DCC is a massive revenue stream for acquirers and to some extent merchants, with no benefit to consumers in practice. I can’t help feeling this will get regulators’ attention at some point.
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