DCC introduction and benefits – Nov 2013 – English

DCC (Dynamic Currency Conversion) service
Introduction
o What is DCC?
DCC stands for Dynamic Currency Conversion.
This function enables you to help your international customers feel at home when paying. Thanks
to DCC, your customers can pay the total amount directly in the currency of their card. Your
terminal identifies the card currency and automatically suggests payment with DCC. This means
that customers can choose which currency to pay in by pressing a button.
Key feature of this service is showing/making payment to exact amount of their own
currencies without any additional calculations. DCC is an oversea payment convenience
service which is already serviced in many countries like Europe ; America; Australia; Korea….
o Business with DCC:
Merchants whose customers are foreigners, such as Hotel; Airline companies; Payment Gate
o Credit cards can be used in DCC Transaction:
o DCC offering 24 currencies:
USD, JPY, EUR, GBP, HKD, TWD, SGD, CAD, AUD, THB, RUB, CNY, MYR, IDR, PHP, MNT, NZD, AED,
MOP, BRL, KZT, NOK, SAR, TRY
Transaction Receipt
Price (VND)
FX rate
Total amount (USD)
Customer Signature
DCC receipt
Vietnam Tourism Statistic and Credit card usage.
o
o
According to a new report released by the General Statistics Office, international visitors came to
Vietnam in 10 months is estimated at 6,119 thousand, the number of visitors to the tourist resorts
continues to increase with over 50% of international visitors to Vietnam. For the whole 2013
estimation may be exceeded 7.3 million.
Supposed that average consumer expenditures of a visitor in Vietnam increased compared with
2012 equal to the average increase in the period 2006-2012 (6%/year), an average expenditures
of 1 visitor to Vietnam in 2013 is 1.057 USD and if the estimation that VN will have 7.3 million as
mentioned above, the expenditure cum service export turn-over in 2013 will reach 7,7 Billion USD,
increased 13% compared with 6,83 billion USD of 2012.
Source: General Statistics Office
How you benefit from every DCC transaction
Expenditure from Card Holders
VND
USD
Exchange Rate
Visa Consumer Card expense without DCC
326.3B
20.3 M
21,000
Visa Consumer Card expense with DCC
326.3B
20.909 M
Included 3%
mark up 21,630
Difference in USD = 3% markup
609 K
Breakdown of DCC service
3% USD/VND exchange markup
Visa Consumer DCC fee deducted for card issuer 2%
609,000
12,180
Total DCC profit
596,820
2⁄3 credited to operator (Banks and Merchants)
397,880
1⁄3 credited to
198,940
Source: Visa Consumer Expenditure 2011
Benefits for Banks
1. New Revenue Stream
With every DCC transaction from your foreign customers, the banks earn the Fx margin
as new revenue. Provides an option for Bank and Merchant to have new revenues, and
also the convenience for Foreign Customers when make payment.
2. Better Service to your foreign customers
Allows VISA and Mastercard holder to check and pay in their own currency.
3. Value Added
DCC enables the local Acquiring banks (e.g the bank who processes the payment on
behalf of the merchant) and the local merchants benefit from the currency exchange fee
normally added to such transactions by VISA, MasterCard and the international issuing
banks.
4. Close relationship with Merchants:
Creating a close relationship between the Banks and the Merchants when the two are
more profited from DCC. To impulse the Merchants in setting up Bank’s POS.
Benefits for Merchants
1. New Revenue Stream
With every DCC transaction from your foreign customers, the merchants earn the Fx
margin as new revenue.
2. Better Service to your foreign customers
Protect against customer service problems that occur due to currency fluctuations. Also
giving them the choice to pay in their home currency.
3. Technical Benefit for DCC
This approach minimizes upfront development work and gives flexibility and doesn’t have
to change acquirers (banks) or vans and with no programming changes on the POS
(PMS)
4. Reliability
KRP/KEB has been providing safe and effective DCC service to travelers, merchants,
banks, Payment Gateways and other financial institutions around across the globe.
Benefits for Customers
1. Conveniences
Foreign Customers will be able to distinguish automatically the payment in the currency
that they are familiar.
2. Efficiency
Cardholders can pay in the currency of their cards.
Business customers will be attracted when information on expense accounts are available
immediately.
3. Safety & Assurance
The transaction amount is based on the Fx rate at real-time, even if there are a currency
fluctuations later, no additional changes to the amount.
4. Transparency
Using real-time the most competitive Fx rates on 24 currencies
Customer can immediately see on the terminal the amount they will actually pay in their
card currency
Vietnam Target and profit division
o BANK - Partnership:
DCC service is needed the partnership with Bank, Payment gate.
In Korea, KRP has affiliated with KEB – Korea Exchange Bank
o Sales Target – Merchant:
Most of Merchants will be large retailers such as Airline and Hotel utilized by
overseas tourists.
o Benefit by sharing % profits:
Banks and SNA-KRP will deal the % markup and the service charge that Customer
have to pay for 3-5%.
The benefit will be divided into 3 for Bank – Merchants and SNA-KPR.
Company Info.
● Head Quarter:
Name: KR Partners
Address: 1128-3 Partner’s Tower-2 #1301-1303, Guro 3-dong, Guro-gu, Seoul, South Korea(152-880)
Phone: 1566-3441 / +82 70 4044 5370
Establishment date: June 1st 2008
Capital: KRW 1,000,000,000
●
Branch:
Head Quarter in Korea:
Singapore:
KR Partners Co., Ltd
1128-3 Partner’s Tower II #1301~1303
Guro-dong, Guro-gu, Seoul, South Korea
60 Alexandra Terrace Lobby B #09-10 The Comtech,
Singapore118502
Tel : +65 6271 8070
Japan:
Vietnam:
3rd Fl, Sanno Park Tower, 2-11-1 Nagata-cho,
Chiyoda-ku, Tokyo 110-6162,
Japan
Tel: +81 3 6205 3362
SNA Viet Nam Co Ltd
3rd Fl, the Lancaster.
22-22 Bis Le Thanh Ton, District 1, Ho Chi Minh City
ĐT: +84 8 3822 6058
Merchant and Partner of KRP
KRP has a co-work relationship with 1200 merchants: ebay/SoftBank etc. as well as
global partners and card issuers.
Major Partners:
Merchant and Partner of KRP
KRP has a co-work relationship with 1200 merchants, ebay/SoftBank etc. as well as
global partners and card issuers.
Major Merchants:
About KR Partners:

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