VISA

Visa To Update Rules, Services For Dynamic Currency Conversion

VISA

To allow ATM operators and acquirers to use Dynamic Currency Conversion (DCC) around the world, Visa is growing its Visa/Plus ATM services and updating its rules. The changes will become effective in mid-April of next year, Vending Times reported.

Through DCC, which is an optional offering, an acquirer, merchant or ATM operator gives cardholders a choice: They can make a transaction in their home currency or the local currency. In the event that a cardholder opts for a DCC transaction, the ATM operator or acquirer could charge a commission when it converts the transaction amount and provides the cardholder with local currency.

In addition, Visa plans to roll out a new solution that opens the door for ATM operators and acquirers to offer multiple banking services, which include account-to-account transfers, mini-statements, and PIN change and unblock, among others.

The news comes as payments giant Visa reported fiscal third-quarter results that showed continued momentum on the international stage, with cross-border transactions up 10 percent year on year. That number was a slight deceleration from 11 percent in previous quarters, owing to the strength of the dollar.

The headline numbers showed that the company beat expectations on the top line – and on the bottom line, too. With a nod toward the fine print of credit and debit spending, and consumers’ propensity to open their wallets (and keep them open), management stated that macroeconomic trends continue apace. Adjusted net income came in at $1.20, which handily outpaced the $1.09 that had been seen by the Street. As for the top line, consensus had been for $5.1 billion, while the reported tally was $5.2 billion.

Among several pockets of international regions of growth, India saw growth of more than 20 percent year on year, according to management commentary. Elsewhere, CFO Vasant Prabhu stated that inbound activity in certain corridors was up double digits, such as in Mexico and the Caribbean, spurred by tourism, for instance.

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