OnDemand Video Module

Introduction

Cross-border card processing is what makes international card networks appear to operate globally. It’s what lets us as tourists pay for a meal at any restaurant in the world. And it’s what lets an online merchant sell to cardholders anywhere in the world. This session explores the four different processing models that are used by global merchants through the lens of cross-border currency conversion and settlement. It also describes how the economics and risks associated with each model are allocated across the value chain.

Topics Covered

• Cross-border card processing overview and terminology
• Definitions, flows, and economics for three core models – standard currency conversion, dynamic currency conversion, and multi-currency pricing
• Multi-currency processors
• Local country acquiring – fourth model

Learning Objectives

To understand the language of cross-border card processing, the differences between the four currency conversion models, and the impact of each model on economics and risk.