Multi-Currency processing allows the client to submit transactions to TSYS in currencies other than US dollars while maintaining merchant funding (ACH) and wire settlement in US dollars. In order to utilize this feature, the client and their front-end vendors will need to modify some data elements in the Draft 256 format. Additional modifications to the accounting control record and MAS security records may also be required.
Multicurrency processing allows:
- Submission of multiple currencies in the existing Draft 256 format.
- Transaction clearing to Visa or MasterCard in the currency chosen by the cardholder.
- Conversion of the cardholder currency to US Dollars for funding of the merchant. Visa and MasterCard settlement will be accomplished in US Dollars.
- On-line screens for reconciliation of exchange rate variances.
Important items to remember:
- The foreign cardholder transaction amount is presented to Visa or MasterCard in the same amount and currency as was authorized at the Point of Sale.
- Foreign dollar amounts are converted to USD for merchant funding by using a merchant defined exchange rate sent in on the 256
- Foreign dollar amounts are converted to USD for TSYS posting (IXTT / IITU) by using the “stale” Visa/MasterCard currency exchange rate files from the previous day.
- When the transaction is settled the next day a variance in the rates will most likely exist ‐ TSYS used VS/MC stale rate, while Visa/MC use a more updated rate file. This variance can be significant if the currency exchanged is volatile.
- Tools to reconcile the variances are described in the screens section of this document. These include the IST (Inquire Settlement Totals) and ICV (Inquire Currency Conversion).
DCC (Dynamic Currency Conversion) or “Pay in Your Own Currency” is a currency conversion service offered at the point of sale. For example, a European tourist staying at a US hotel may want to know how much the stay will be in their native currency (e.g. Yen, British Pounds, Euros, etc…). DCC provides the option for the cardholder to see the purchase amount in their home currency before making the purchase. DCC uses the TSYS Multicurrency backbone to clear the foreign currency amounts to the associations while still paying the merchants in US Dollars.