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#272373 - 11/08/04 05:30 PM New Visa Requirements
Anonymous
Unregistered

has anyone received the new VISA disclosure requirements regarding exchange rate information relating to currency conversion? Which disclosure are you updating?

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General Discussion
#272374 - 11/09/04 02:22 PM Re: New Visa Requirements
PABanker Offline
Gold Star
PABanker
Joined: Dec 2000
Posts: 491
Blue Ball, PA 17506
Yes,I have.

Here it is:
Visa USA Member Rules NEWS BULLETIN
Issuers Are Alerted to Changes to the Exchange Rate
Disclosure Requirement - Effective April 2005



Required Action:

An Issuer must provide to its cardholders in writing by April 2, 2005, a revised disclosure of exchange rate information relating to currency conversion, as specified in the Visa U.S.A. Inc. Operating Regulations.

Changes to Issuer Exchange Rate Disclosure Requirement:

The Visa USA Board of Directors, at its October 29, 2004 meeting, approved Operating Regulation revisions to the current exchange rate disclosure requirement. This change aligns with recent revisions to the Visa International Operating Regulations, and requires an Issuer to disclose to each of its cardholders, in writing by April 2, 2005, that the exchange rate between the transaction currency and the billing currency used for processing international transactions is:

"A rate selected by Visa from the range of rates available in
wholesale currency markets for the applicable central processing
date, which rate may vary from the rate Visa itself receives, or

The government-mandated rate in effect for the applicable central
processing date,

in each instance, plus or minus any adjustment determined by the
Issuer."

This revision supports implementation of the International Service Assessment fee for international transactions that takes effect in April 2005, and reflects elimination of the one percent currency conversion fee previously assessed to Members for cross-currency transactions.

For more information: Contact your Visa Sales Director or nearest Visa office.

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#272375 - 11/09/04 03:39 PM Re: New Visa Requirements
Anonymous
Unregistered

We are including it in a statement message to all account holders and updating our deposit brochures.

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#272376 - 12/30/04 03:59 PM Re: New Visa Requirements
soanony Offline
100 Club
Joined: Jun 2003
Posts: 176
We supply Visa debit cards...does this apply to those customers? I believe we are currently an a Associate member of visa.

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#272377 - 12/30/04 05:44 PM Re: New Visa Requirements
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 40,086
Cape Cod
It applies to all Visa cards.
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BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

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#272378 - 01/04/05 11:11 PM Re: New Visa Requirements
soanony Offline
100 Club
Joined: Jun 2003
Posts: 176
Can someone tell me when this bulletin was issued by visa so that I can get our people to pull the actual report. Thanks.

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#272379 - 01/05/05 05:47 PM Re: New Visa Requirements
GenerousLife Offline
Diamond Poster
Joined: Feb 2002
Posts: 1,466
USA
12-7-2004 Visa Business Review "Issuers Alerted to Changes to the Exchange Rate Disclosure Requirement".

You have to be enrolled in Visa Online to get to it.
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#272380 - 01/05/05 08:03 PM Re: New Visa Requirements
soanony Offline
100 Club
Joined: Jun 2003
Posts: 176
Thanks.

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#272381 - 02/25/05 04:35 PM Re: New Visa Requirements
Mindy Offline
100 Club
Joined: Apr 2004
Posts: 131
Texas
Sorry, but I still don't get it. Is the bank the issuer? Should we include this in an EFT disclosure?

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#272382 - 02/25/05 04:43 PM Re: New Visa Requirements
Tricia Offline
Gold Star
Joined: May 2004
Posts: 458
Smack dab in the middle of IL
I am with you, Mindy. I am confused, too.
From what I have been told, this should be included in the EFT disclosure, not because it is a requirement of Reg E, but because it is the 'logical' place for it (with all the other information about your visa debit card).
You would think that this came from the gov't...to me this just confusing and does not make much sense!
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#272383 - 02/25/05 08:46 PM Re: New Visa Requirements
Anonymous
Unregistered

We just had our EFT disclosure re-done, and the company we use put this new disclosure in the document.

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#272384 - 02/25/05 09:40 PM Re: New Visa Requirements
Mindy Offline
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Joined: Apr 2004
Posts: 131
Texas
Thank you all for your help.

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#272385 - 02/26/05 01:51 AM Re: New Visa Requirements
rainman Offline
Power Poster
rainman
Joined: Nov 2004
Posts: 3,237
Quote:

This revision supports implementation of the International Service Assessment fee for international transactions that takes effect in April 2005, and reflects elimination of the one percent currency conversion fee previously assessed to Members for cross-currency transactions.





Hate to say it, but the currency conversion disclosure is only part of the story. I understand that the "International Service Assessment Fee" referred to in the VISA release is a 1% charge on any foreign transaction, even if it is conducted in US dollars. VISA will impose the charge on the issuer (i.e. the bank), and it's up to the issuer to determine whether to pass this charge on to the cardholder. If you do pass on the charge, it's a required disclosure under Reg. E for debit cards and Reg. Z for credit cards. So while you're changing your debit and credit card disclosures, be sure to address the issue of the 1% fee unless your bank is just going to eat it.
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#272386 - 02/28/05 01:36 PM Re: New Visa Requirements
Maya Offline
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Joined: Jan 2005
Posts: 154
South Carolina
If we plan to eat the 1% fee, does this mean that we will not be required to go through with the disclosures?

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#272387 - 02/28/05 07:39 PM Re: New Visa Requirements
Anonymous
Unregistered

You still have to do the disclosure because of the change in conversion methodology; you just don't need to include anything about the 1% fee.

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#272388 - 02/28/05 07:41 PM Re: New Visa Requirements
rainman Offline
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rainman
Joined: Nov 2004
Posts: 3,237
oops, that was me, didn't know I wasn't logged in.
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#272389 - 02/28/05 10:09 PM Re: New Visa Requirements
Maya Offline
100 Club
Joined: Jan 2005
Posts: 154
South Carolina
Does anyone have a "customer friendly" copy of this notice that they would be willing to share. I sent the language provided by Visa but my marketing department wants to "tone it down". Thanks.

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#272390 - 03/01/05 12:51 AM Re: New Visa Requirements
river girl Offline
Diamond Poster
Joined: Nov 2004
Posts: 1,005
I received my Visa bill in the mail today and this was included. It doesn't say copyright anywhere on it.

Currently when a purchase is made in a foreign country, the transaction amount is converted to U.S. dollars, and adjusted by a 1% currency conversion fee. When the transaction is posted to your account, the total amount (purchase amount plus conversion fee) appears as a single transaction on your billing statement.
Effective April 2, 2005 the currency conversion fee will be discontinued. Instead, a 1% International Transaction Fee will be assessed on all transactions where the merchant country differs from the country of the card issuer. The converted transaction amount will be shown separately from the International Transaction Fee on your billing statement. This fee will be assessed on all international purchases, credit vouchers, and cash disbursements.

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#272391 - 03/02/05 11:13 PM Re: New Visa Requirements
Princess Leia Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,975
Alderaan
While searching for something else, I found the Bankers Systems sample disclosures on the complianceheadquaters website.

Visa Disclosures

and

Compliance Point 2/24/05
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#272392 - 03/04/05 09:09 PM Re: New Visa Requirements
river girl Offline
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Joined: Nov 2004
Posts: 1,005
If we are going to pass the 1% fee on to the customer do we have to also update our Schumer Box?
If I update our Credit Card Disclosure and Agreement to state the 1% fee do I also have to state this fee on our fee schedule? I went to the Compliance Headquarters site and they state we must disclose the fee elsewhere, such as on a fee schedule.
So I update the Schumer Box on the Website Visa Application, the Schumer Box on the Paper visa application, the credit card Agreement Disclosure, the Reg E Disclosure,and the Fee Schedule. Anything else I'm forgetting
Last edited by river girl; 03/04/05 09:50 PM.
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#272393 - 03/04/05 09:51 PM Re: New Visa Requirements
Princess Leia Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,975
Alderaan
Are you are considering it a finance charge?
Last edited by Princess Leia; 03/04/05 09:57 PM.
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#272394 - 03/04/05 10:58 PM Re: New Visa Requirements
river girl Offline
Diamond Poster
Joined: Nov 2004
Posts: 1,005
I don't know. We are going to take the fee that is imposed upon us from visa and pass it on to the customer. Is that a finance charge? I have that in order to be a FC the fee is required by the lender. It's not us that is requiring it, it is Visa that requires it - it's just a pass thru type of charge. HELP
What are you doing with this fee?
Last edited by river girl; 03/04/05 10:59 PM.
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#272395 - 03/08/05 04:55 PM Re: New Visa Requirements
Cat Woman Offline
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Cat Woman
Joined: Sep 2004
Posts: 1,342
New England
I guess there's a big debate on whether this is considered a finance charge or an "other" charge. CUNA is stating that this should be classified as an other charge, but counsel is adamant that this is a finance charge. Does anyone know how they are handling this yet???

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#272396 - 03/08/05 05:02 PM Re: New Visa Requirements
Princess Leia Offline
Diamond Poster
Joined: Jun 2004
Posts: 1,975
Alderaan
Finance Charge.
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Duct tape is like the force: It has a light side and a dark side and it holds the universe together.

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#272397 - 03/08/05 05:20 PM Re: New Visa Requirements
Maya Offline
100 Club
Joined: Jan 2005
Posts: 154
South Carolina
What then is the proper method to be used to disclose this fee to your Visa debit card customers? Would it be sufficent to disclose in the Reg. E section of your account opening disclosures eventhough this is a Reg. Z matter?

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