I propose to take Questions Nos. 95, 140 and 267 together.
The range of services offered by credit card providers to subscribing retailers and cardholders is primarily a matter of private contract, and I have no legislative role in specifying the form of those services. Commercial considerations such as demand, cost and technical feasibility will influence the range of features offered by providers at any given time, and the take-up of these features by retailers and cardholders.
Currently seven regulated financial institutions provide credit cards in Ireland; some of these also provide services through other financial institutions. The service referred to by the Deputy is I understand a commercial option which may be offered to retailers but neither my Department nor the Financial Regulator has any statistics on the number of institutions that offer the service. However, the Financial Regulator has advised my Department that a small percentage of point of sale terminals offer cardholders the option of having their transaction converted into their home currency at the time the transaction is undertaken. In this instance the rate applied is the rate prevailing on the day of the transaction.
The rules governing currency conversion on credit cards are set by the international card payment schemes such as Visa and MasterCard. Credit card providers, such as financial institutions in Ireland, are required to comply with the rules of these schemes. I understand that the rate of exchange applied to credit card transactions undertaken outside of the euro area is set each morning under the rules of the international card payment schemes with reference to the prevailing international rate of exchange. As currency markets are volatile, these rates are likely to change daily. The amount of the transaction is converted into euro at the rate of exchange on the date that the transaction is debited to the customer's credit card account. The rules governing the conversion of foreign currency transactions should be itemised in the terms and conditions that accompany the credit card account.