Martin Crawford, managing director of Travelex Australasia, says: "We are targeting merchants that have a high foreign card usage - hotels, rental car companies, souvenir and duty-free shops, that type of business."
Merchants would replace their current point-of-sale terminals with one designed to recognise foreign cards.A script prompts the POS
operator to ask in which currency the customer would like the transaction recorded.Several options are offered, although typically they choose their home currency.
"At this point, the switch is looking up rates to show the customer, say, that 100 Aussie dollars is actually $65.73 US," Mr Crawford
"If you proceed, from then on the switch, via the acquirer, which is Bankwest, finds its way through the credit-card schemes into that local currency."The merchant is settled in Aussie dollars, deposited into his
account on the same day or next day, but the card scheme provider is settled in the foreign currency."However, the service is not available to all card holders."Some card schemes are yet to be opened to allow this to happen, including American Express, Diners Club and JCB
," Mr Crawford
...Martin Crawford, Managing Director of Travelex Australia said; "If foreign card spend was put through our Dynamic Currency Conversion environment it could result in upwards of $100 Million of earnings per year being transformed from the pockets of off-shore banks to the pockets of Australian merchants.