INCOMING PAYMENT SOLUTION FOR UNIVERSITIES

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INCOMING PAYMENT SOLUTION FOR UNIVERSITIES

“Having Trouble with Foreign Tuition

Payments. . . China, India, Others? Come Learn Best Practices to Minimize Costs and Confusion.”

This presentation has been prepared solely for informational purposes and does not in any way create any binding obligations on either party. Relations between you and WUBS shall be governed by the applicable terms and conditions. No representations, warranties or conditions of any kind, express or implied, are made in this presentation.

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UNIVERSITY SOLUTION

AGENDA

 Western Union Business Solutions  International Student Enrollment Data

 Traditional International Student Payment Process  Challenges of International Payments for Students

d U i iti

and Universities

 University Success Story  Questions

 Questions

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WESTERN UNION BUSINESS SOLUTIONS

ABOUT US

 The world’s leading non-bank provider of cross borderThe world s leading non bank provider of cross border business payments

 Global financial network spanning more than 200 countries and territories

 Deep expertise in moving funds around the globe with access to over 140 currencies

access to over 140 currencies

 Combined client base of over 95,000 customers

 Network of approximately 485,000 Agent locationspp y g

 Customized solutions for law firms, financial

institutions, charity operations, and higher education

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INSTITUTE OF INTERNATIONAL EDUCATION-DATA

 Open Doors report, published annually by the Institute of

OPEN DOORS REPORT

International Education (IIE) in partnership with the U.S. Department of State’s Bureau of Educational and Cultural Affairs.

 Record number of foreign student enrolled in Higher Education institutions increased by 5% to 723,277  32% more international students studying at U.S.

colleges and universities than there were a decade ago  Graduate international enrollments has remained higherGraduate international enrollments has remained higher

than undergraduate since 2001/02

 International students contribute more than $21 billion to the U.S. economy

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CURRENT PAYMENT METHODS

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INTERNATIONAL STUDENT CHALLENGES

US d ll i f i i i l

SENDING INTERNATIONAL PAYMENTS

 US dollar is a foreign currency to international student

 Student is required to pay costly international wireStudent is required to pay costly international wire fee

 High retail exchange rates

 Face delays from payment details not being clearly passed to the university

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CURRENT PAYMENT PROCESS

SENDING PAYMENTS INTERNATIONALLY

 How student’s wire money internationally in today’s world

Student Bank University

Bank

 How student s wire money internationally in today s world

UNIVERSITY

STUDENT

BENE-DEDUCT

FEES BENE-DEDUCT _FEES

Intermediary Intermediary

BENE-DEDUCT FEES

High intermediary Very difficult

TRACKING BANK FEES

Slow and SETTLEMENT Intermediary Bank Intermediary Bank High intermediary bank fees Very difficult to track status Slow and controlled by banks 7 © 2012 Western Union Holdings, Inc. All Rights Reserved. Western Union Confidential

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UNIVERSITY CHALLENGES

RECEIVING INTERNATIONAL PAYMENTS FOR TUITION AND OTHER RECEIVABLES

 Limited or lack of remittance information for incoming payments, resulting in an inability to apply funds to student account

 Receive less than 100% of the value which the student has requested due to intermediary fees and incoming has requested due to intermediary fees and incoming bank charges

 Limited or no payment automationp y

 Manual reconciliation

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INCOMING PAYMENT SOLUTION

LEVERAGE IN-COUNTRY BANKING NETWORK

University

Bank StudentBank

UNIVERSITY PAYMENT IS SENT TO STUDENT

THE UNIVERSITY

PAYMENT MADE TO IN‐COUNTRY BANKING

NETWORK

Payment transferred internationally via in country banking network

Easy to track‐ TRACKING Fees are reduced or BANK FEES SETTLEMENT in‐country banking network University is wired funds‐ i di t dit f U S 9 © 2012 Western Union Holdings, Inc. All Rights Reserved. Western Union Confidential y Funds deposited into

banking network eliminated – payment is a domestic transfer

immediate credit of U.S. Dollars to chosen account

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INTERNATIONAL PAYMENT SOLUTION

 Students parents or a sponsor can make payments to a

PROCESS FLOW

 Students, parents or a sponsor can make payments to a university provider from anywhere in the world, expressed in their chosen currency at their local bank or online

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University offers payment method

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to overseas student Student logs into University website Student pays in their home currency University is credited the full local currency amount

 Students goes to

online portal and  Student sends  Western Union remits U i it online portal and

chooses to pay by:

Foreign Currency

 Student sends payment in local currency to in-country account

 Western Union remits identified funds, and reconciles payments for institution  University promotes payment method to international students

University Student _ManagementOnline Bank

SIMPLE QUICK CONTROLLED SECURE AUTOMATED

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INCOMING PAYMENT SOLUTION

 In-country bank relationships

BENEFITS TO STUDENT

 Eliminates intermediary bank charge deductions  Payments are seen as a local currency transaction  Competitive wholesale exchange rates

 Reduces high international wire fees

R t h ld f ifi ti i d

 Rates held for specific time period

 Instructions can be emailed to third party remitters  Payment is applied to student account quickly

 Payment is applied to student account quickly

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INCOMING PAYMENT SOLUTION

 Simplifies and streamlines the international payment

BENEFITS TO UNIVERSITY

process for the university

 Compliments and supports the university’s online payment and enrollment strategy

payment and enrollment strategy

 Minimize time and effort for reconciliation

 Earlier control of deposited funds benefits the cashEarlier control of deposited funds benefits the cash position of the university

 Fully referenced payments and statements makes it

ll h f d i d d

easy to allocate the funds against student records  Track payments easily

 Receive 100% of USD student transfer  Receive 100% of USD student transfer

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INCOMING PAYMENT SOLUTION

 Dedicated payment processing team to ensure timely

REPORTING CAPABILITIES

 Dedicated payment processing team to ensure timely and accurate payment postings

 Real-time reporting capability for pending and processed payments

 Flexible reconciliation statements available for

stand-alone product or integrated within university ERP system alone product or integrated within university ERP system  Fully compliant with university regulatory policies:

-PCI compliantPCI compliant -OFAC compliant

-SAS 70 Type 1 and 2

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MANAGING EXOTIC CURRENCIES

CHINA /INDIA SOLUTIONS

 Largest population of international students are from India and China

 Largest population increase came from China (rose 24%

- the 4th _{consecutive year of double-digit increases)}

- the 4 consecutive year of double-digit increases)  Common Problems

 Solutions to Consider

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UNIVERSITY SUCCESS STORY

 Received multiple international wires payments into

PREVIOUS CHALLENGES

p p y

university bank account, which resulted in increased bank fees

N l t id tif i i t d dit th

 No clear way to identify incoming payment and credit the funds to the appropriate student account

 Payment details were often times truncated or vital y

reference information eliminated

 Received less than what the student owed which led to

b bi l i i t d t

campus absorbing loss or reissuing amount due to student account

 Experienced delays in posting payment to studentExperienced delays in posting payment to student account

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UNIVERSITY SUCCESS STORY

 Payments are bundled together for one daily deposit by

BENEFITS BY USING INCOMING PAYMENT SOLUTION

y g y p y

wire into our bank account reducing our wire fees

 Ability to clearly identify student details when payments are made makes crediting payments to student account are made makes crediting payments to student account easy and efficient

 Receive the full amount paid by the studentp y

 Payments reconciliation data is no longer manual

 Funds are deposited into our bank account quickly so payments can be applied to student account

 Limits the calls and questions of “Where is my payment?”  Immediate assistance when needed by phone or email  Immediate assistance when needed by phone or email

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IN-COUNTRY BANKING NETWORK

 Global Clearing Banking Network automatically routes

NOT ALL PAYMENT PROVIDERS ARE THE SAME

Global Clearing Banking Network automatically routes payments through local country clearing systems,

providing fast settlement cycles.

 Payments are seen as a domestic payment which reduces student’s outgoing wire fee

reduces student s outgoing wire fee

 Ensures low error rates of paymentsp y

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INCOMING PAYMENT SOLUTION

 In country banking network

SOLUTION SHOULD INCLUDE:

 In-country banking network

-Reduced banking fees for students -Reduced banking fees for universityReduced banking fees for university

 Allows student to pay in their local currency  Guaranteed rate for a specific time period

 University should be credited 100% U.S. Dollar equivalent immediately after incoming payment is reconciled

reconciled

 Provider should reconcile incoming payment, not the university

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INTERNATIONAL PAYMENT PRODUCT OFFERING

FULL SUITE OF INTERNATIONAL PAYMENT SOLUTIONS

 Ability to send outgoing payments for other campus programs like Study Abroad, Summer Sessions, and faculty R&D projects

 Secure university Cash solution

F d C t t bilit t id k t l tilit

 Forward Contract capability to avoid market volatility  Card offering for all international students that allow

parents to load funds directly to prepaid card parents to load funds directly to prepaid card

 Incoming payment solution that offers ongoing customer service and marketing support to increase student

ti i ti

participation

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FINAL THOUGHTS AND COMMENTS

QUESTIONS?

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THANK YOU

Vicki Dolphens

Regional Manager – Midwest/Southeast

Daniel Jurgens

Regional Manager – EastCoast

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