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AJB Partners with First Data for Dynamic Currency Conversion
May 3 - AJB Software Design Inc., a leader in integrated payment solutions, and First Data Corporation, a global leader in electronic commerce and payment processing, have announced that retailers across the globe are now processing international payment transactions, using First Data’s Dynamic Currency Conversion service. DCC provides U.S. merchants with a way to entice increasing numbers of international consumers.
According to the U.S. Department of Commerce, international visits to the United States is expected to grow by 36 percent between 2010-2016, which would result in more than 81 million visitors by 2016. First Data’ leading DCC service is offered in various countries and regions around the globe with the newest market being Canada, which is expected to launch within a few months.
AJB’s payment processing application suite now allows merchants to easily implement First Data’s DCC service. DCC is a currency and payment service that allows merchants to offer international Visa, MasterCard and branded payment cardholders with the option to execute purchases in their local currency. Working together the companies provide a premier DCC solution in the marketplace today.
AJB’s payment processing application suite includes Flexible Integrated Payment System and Retail Transaction Switch. FIPay provides the critical in-store system component responsible for integrating the PIN pad device into First Data’s DCC solution. AJB’s Retail Transaction Switch provides real-time authorizations to First Data for the DCC transactions.
“AJB has over 18-years’ experience integrating payment-based vehicles into other payment products,” said Pat Polillo, vice president of sales at AJB. “Our products have proven to be a flexible, stable and capable set of solutions for tier-1 retailers. We are pleased to be working with First Data on a number of initiatives, including its market-leading DCC solution.”
“Our organizations remain steadfast and focused on developing and delivering valuable products and services that drive value to both merchants and consumers alike,” said T. Michael Black Jr., vice president, international currency solutions, First Data. “Partnering with AJB to integrate our global DCC solution into the AJB suite of products is a great example of how our two companies provide innovative solutions to our mutual customers.”
Without DCC, consumers can be charged up to 7 percent of the total transaction cost on top of an undisclosed rate of exchange. Consumers do not know the exact cost of their purchase until the transaction is revealed on their credit card statements. With DCC, consumers have the choice to pay in the local base currency or their own currency. DCC provides consumers with full transparency into the details of the transaction helping them make an educated and informed decision. Consumers instantly know the precise amount they are paying in their local currency. There are no hidden fees or surprise currency exchange adjustments when they receive their credit card statements, and they receive a credit card receipt that will match the transaction amount posted to their credit card statement.
“DCC provides an important value-added service and ancillary revenue stream for merchant service providers with strong presence in tourist and corporate travel destinations,” said David Fish, senior analyst, Mercator Advisory Group. “It can also provide an attractive revenue stream for merchants that serve tourists, potentially offsetting a portion of their overall expense of managing the point of sale and the payment process.”
Merchants Generate New Profits with DCC
New revenue stream. Merchants that use DCC will earn a new revenue stream on every converted transaction while providing a better consumer shopping experience. The DCC conversion process redirects the revenue earned by the card associations and card issuers from currency conversion margins and fees to merchants.
Increased consumer satisfaction; higher sales. Providing consumers with the ability to pay in their own currency attracts more foreign consumers and entices them to spend more. DCC offers consumers a custom and luxury purchase experience. The majority of merchants offering First Data’s DCC have seen their international sales increase year over year.
Positive effect on chargebacks. DCC transactions can reduce the rate of chargebacks. Because DCC transactions are settled in the consumer’s native currency at point-of-sale, consumers will not be blindsided with unexpectedly high exchange rates and bank fees when they receive their credit card statement. In addition, they will easily recognize transactions on their card statement as the amount and currency will match their receipts.
Currency risk mitigation. Currency fluctuations associated with chargebacks can occur long after the original transaction. Exchange rates are not guaranteed through this period. DCC eliminates the risk of delayed chargebacks, guaranteeing the rate of exchange for the duration of the transaction.
About First Data
Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive customer revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction.
About AJB Software Design Inc.
AJB is a leading provider of payment integration software solutions. Twenty percent of North America’s top 100 retailers and 10 percent of the top global retailers by sales volume, rely on AJB products and services. Founded in 1994, AJB has over 140 global clients, and its software is used by more than 250,000 POS terminals.
AJB makes it easy to connect the components required for real-time payment processing. It enables retailers to quickly comply with new standards and payment types. In addition, AJB allows banks and POS vendors to easily integrate their products with retailers, petroleum and convenience stores. AJB simplifies integration with existing systems; solutions are scalable, multi-channel and platform independent. For more information, visit www.ajbsoftware.com.