A Dublin headquartered technology company, Regulert, has launched a solution for banks and card issuers, providing a seamless and simple path for compliance with new rules on transparent FX charges (Regulation (EU) 2019/518).
From April 2020, the European Union requires financial card issuers and banks to inform customers of FX rates whenever cards are transacted in Non-Euro EU countries. The new rules aim to create a transparent market for FX services, so that consumers can make an informed choice.
Issuers must display the percentage difference between what they charge for the transaction and the European Central Bank (ECB) rate for that currency conversion on their websites and mobile apps. This must be in (or near) real-time and available for the customer to access.
One year on from this implementation (by April 2021) issuers will again be required to substantially up their game, providing real-time (or as close to real time as possible) an electronic notification to the card holder via mobile push notification, banking apps, SMS or email the amount they will be charged in their home currency and the percentage difference to the current ECB rate.
For banks and card issuers struggling to meet these pressing deadlines against a back-drop of many other time-consuming new rules and regulations, Regulert has developed unique, instantly deployable solution for banks and card issuers to immediately meet the requirements under Regulation 2019/518.
Regulert Director, Enda Murphy says: “While the current regulation applies to a limited number of territories in the EU and to EU-based banks, this is going to be the tip of the iceberg in terms of transparency across the globe for FX charges on card transactions.
“Banks and card issuers may feel overwhelmed given the many other changes still pre-occupying their time and resources, but Regulert can ease their pain by providing an easy, instant and compliant solution.
“What’s more this latest EU requirement has a significant silver lining. Greater transparency on FX charges will offer issuing banks great opportunities to differentiate their products in this space and win customers for their competitively priced travel cards, Dynamic Currency Conversion and other offerings.
“It will also encourage greater use of such services, by reassuring customers who may have previously fallen foul of high-rate services designed to catch travellers unawares.
“Those providers that act first and win trust in this sector will be able to gain a significant competitive advantage.”