DCC@ATM Case Study

Developing an Additional Revenue Stream for an ATM Estate Across Europe

DCC@ATM Case Study
DCC@ATM Case Study

How do you realise additional revenue streams from your existing portfolio of ATMs?

We approached a pan-European card processor managing ATM estates in over 10 European countries after discovering they weren’t utilising a Dynamic Currency Conversation (DCC) service.

DCC offers consumers the chance to choose to withdraw foreign exchange currency at an ATM with full visibility of the rate of exchange offered. By bypassing the card schemes as the FX provider, DCC offers ATM processors and owners an additional revenue stream on every DCC transaction.

Being able to offer DCC via their ATM customers across Europe meant the processor could offer their banking customers and Independent ATM Deployers (IADs) an additional revenue opportunity, which would deliver a competitive advantage over other card processors.

Fexco’s extensive experience in DCC and foreign currency meant that the customer could be sure that the solution was fully compliant.

By utilising the Fexco solution it meant the processor was able to reap our experience with multiple card processors and banks via ATMs, POS merchants and eCommerce in 60 countries across the globe.


The Business Impact

The relationship kicked off by testing the Fexco product with one bank operated estate in a single country, delivering an initial €11m FX opportunity across 150 ATMs.  Over the life of the relationship, this has now grown to a total FX opportunity of €600m across 8 banking and IAD customers, in 10 countries stretching across northern, central, eastern and southern Europe covering over 5,000 ATMs, generating over €25m of revenue for both the processing partner and the ATM owners on an annual basis.

The Competitive Difference

Rate adjustment by location:  Offering the flexibility to adjust the FX rate offered in key locations means that the ATM owner can ensure their estate is optimised for conversion and profit wherever they are in the world.  This might mean that ATMs in border locations or in airports have different, optimised rates than standard bank branch locations for example.  Fexco monitors each ATM by location to track performance and make recommendations on improvements.  And with over 120 currencies offered – ATM owners can be sure to maximise the revenue for every international customer.

Monitoring take-up performance:  Keeping a continual eye on DCC acceptance rates across the estate means that Fexco can make recommendations as to constant improvements.  For ATMs with low acceptance rates that might means making changes to rates offered at time of day, size of transaction, location of ATM or many other variables.

Applying user experience to screen design to increase uptake:  Fexco’s broad experience in foreign currency exchange, with over €17bn of DCC transactions carried out with Fexco partners each year, means that we are the experts when it comes to the performance of the ATM screen in DCC acceptance.  Our User Experience team are constantly monitoring the performance of screens to encourage acceptance and applying best practise techniques to ensure optimal uptake.

Compliance guaranteed – wherever you are in the world:  Fexco’s financial operations in over 60 countries around the world means that compliance is critical. This removes the need for customers to worry about the compliance of their DCC solution – we ensure that we are aligned with all the regulations set by card schemes, local and international regulatory bodies alike – offering seamless and risk free compliance.

Plug and play solution:  One integration needed across the whole ATM estate – no need for complex roll outs of upgrades across multi locations.

Full treasury offer:  Processors can make use of guaranteed rates on exchange, rather than carrying the risk of settling on the wholesale currency markets.  This completely reduces the foreign currency risk and means that processors can accurately predict revenue across their estate.

Here's what our partners say...

“We are pleased to confirm that Fexco is our partner for DCC@ATM in multiple markets across each of our ATM estates. Fexco worked with us very closely during the implementation stages of the product utilising their expertise in DCC and project management. Today the solution is working without any issues and Fexco continue to support us on a daily basis as required in a partner fashion. We are happy to recommend Fexco as a DCC provider and partner.”

Partner Bank

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