Dynamic Currency Conversion - How IADs can make the most of it

The Great White North...12 million people visit Niagara Falls each year (When it is not February and when ice particles in the wind does not hit your face of course...). Majority of visitors being tourists withdrawing Canadian dollars (yes they are plastic and there are birds on it Barney Stinson, but we love them, get over it!), whereas their bank of origin uses another currency. When they are using ATMs, this is accomplished with the help of Dynamic Currency Conversion (DCC).

DCC is a process whereby the currency of a transaction is converted by a merchant or ATM to the currency of the payment card's country of issue at the point of transaction.

15 DCC is becoming a very important source of income for Independent ATM Deployers (IADs) since much more can be earned per transaction compared to traditional withdrawal transaction.

Depending on the location, DCC transactions may contribute anywhere from 1% to 20% of transactions and there is a huge difference of benefits to IADs when it hits to the higher end.

Traditionally, IADs have local knowledge on where the touristic attractions are. Everybody knows people visit Horse Shoe Falls, however with the vast availability of information to travelers, the tourists now enjoy traveling like locals.

As a result, more and more people go to Niagara-on-the-Lake instead of the Falls. And don't forget we are looking for travelers who doesn't care for the few dollars extra spent on withdrawing cash. Don't get me wrong but they are not the ones looking down the Horse Shoe falls you have seen above, they are the ones sipping their fruit wines near Niagara-on-the-Lake. and riding that cart below.


Lucky or unlucky for us depending on where you look at it, another aspect of the internet age is that now through the web, an social media (twitter, facebook, foursquare), where the tourists are actually visiting can be mined.


Of course it is not enough to find just where are they are visiting, it is also important to find where they actually withdraw cash. This is usually dependent on the point of interests that trigger cash usage, such as casinos, gift shops, walking reach of the neighborhood etc. all combined.

Therefore it is important to utilize technologies combining multiple maps in the decision process. This is complicated process enlisting cutting-edge data science techniques. However thanks to open GIS platforms, and cloud computing, this is now feasible with software powered by AI.

No need to tell; each business have to understand their customers. Now in terms of DCC, IADs' prime customers are tourists, hence having local market knowledge is not sufficient anymore. That is a non-shrinking business at best. However, using the information which travelers are using readily available on the web, and optimizing the ATM locations with respect to that has very promising opportunities at hand for the IAD business. But we also have secret ingredient to find where they are, message me to learn more about it, especially if your DCC transactions change around 1% to 3%.

DR. Tolga KURT