Objective
MCA popularly known as DCC (Dynamic currency conversion) is a facility provided to the cardholders to use their credit cards in their billing currency across the globe. This provides transparency into the whole transaction and also builds confidence in cardholder since he knows how much he is spending.
Overview
- The terminal model to be used is Gemalto 5100 V2
- A single terminal (single application) will be deployed to acquire INR and other currencies (Impact will be studied on reports and feed)
- Merchant needs to execute batch close at the end of the day on or before 3.00 AM. If Batch close has not performed the exchange rate fluctuation risk should be borne by the Merchant Establishment. A report of missing batches should be identified automatically
- Venture Infotek switch will support 25 currencies. To begin with, terminal will support following 14 currencies, and later on the number of currencies can be added at the terminal level as per the requirements
Transaction Flow
The domestic Bin table shall be kept on the terminal and updated periodically along with the switch. During Settlement MXP has to check whether the BIN file in the terminal is the same version that is available at MXP. If not, the latest BIN file has to be downloaded to the terminal after completion of the Settlement.
- The card is swiped and the amount entered in INR
- The terminal verifies the bin table and if it is a domestic bin the transaction will proceed in INR for authorization automatically
- If the bin is not available in the file the terminal will prompt for DCC option, which already exists, and show the currencies supported along with INR being given as an additional option
- If the card holder opts for local currency the merchant needs to select the INR option just as he is doing for other currencies
- Based on the option of the cardholder the merchant will select the currency and the transaction will be through
In this option the manual intervention is limited only to choosing the currencies for international cards. Since we are also giving an option of choosing the local currency (INR) we are totally compliant with the guidelines and there will be no scope for any kind of dispute by cardholder at a future date. Besides we are simplifying the process and also avoiding revenue leakage.
In case of a tip amount:
- Merchant will insert tip amount in the Billing Currency
- Merchant will confirm amount
In the Authorization transaction only the Billing Currency and Billing amount will be sent to the Association. INR amount and exchange rate will not be sent. INR amount and exchange rate will be sent from the terminal to the Venture Infotek system, and will be used for merchant payment purpose.
Settlement
In the Settlement transaction only the Billing Currency and Billing amount will be sent to the Association. INR amount and exchange rate will not be sent. INR amount and exchange rate will be sent from the terminal to the VI system, and will be used for merchant payment purpose.
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