Taking advantage of new rules for foreign currency exchange set by two leading card associations, Travelex is already offering foreign exchange dispensing (FXD) and dynamic currency conversion (DCC) at more than 50 ATMs in airports in the United Kingdom. Travelex plans to extend this service to many more ATMs in high street, retail, and airport locations over the next 12 months.
Dynamic currency conversion at the ATM makes the foreign exchange process far simpler and more transparent for customers by converting currency amounts into the customers' home currency. Customers know exactly what they will be charged for making a withdrawal and these transactions are not subject to unknown and variable exchange rates set by the card issuer. Using DCC, Travelex is able to set the exchange rate for withdrawals and therefore ensure that transactions are easier for the customer to understand.
Dan Gilby, Product Manager for FX & DCC Products, Travelex, said, "One of our key business objectives is to offer our customers the simplest service possible. We decided to use Postilion to drive our new ATMs as the product is extremely robust and flexible, allowing us to deliver complex new services with minimal customization and to completely modernize our delivery model. By enhancing our proposition to customers with these self-service ATMs, we can offer a round-the-clock service which further removes the complexity of the exchange process and provides our customers a better understanding of the fees involved in ATM transactions."
By using Postilion, Travelex can offer multiple currencies through the ATM and continuously update exchange rates throughout the day without service interruption. This service complies with stringent FXD/DCC processing rules set by card associations and has been certified by the leading ones.
Postilion's EVP for Business Development, Central & Eastern Europe, Andrew Marshman, said, "The new card association rules around FXD/DCC have generated a great deal of interest in how foreign currency exchange can be made easier for customers. They have also created a regulatory framework for providing these services which has allowed Travelex to look at interesting new delivery methods that benefit customers and generate revenue opportunities. We are extremely proud that Postilion is a leader in the market in offering ATMs that comply with FXD/DCC, which is a tribute to the flexible and open nature of the product."
Travelex plans to roll this service out under its own brand and in association with partner banks and retailers. Halifax Bank of Scotland has already implemented several Travelex FXD ATMs in its branches.