How International Card transactions takes place through White Label ATM?

White Label ATMs (WLAs) are the ATMs owned by non-banking entities. These ATMs do not display the logos of any bank. Bank Customers can withdraw money from debit cards/credit cards/prepaid cards issued by the banks at WLAs but they have to pay fee for the service provided to them. The WLAs are now allowed to accept international credit/debit/prepaid cards issued under card payment network scheme (Authorised under the PSS Act 2007) subject to adherence of following stipulations.

1. Before commencement of their operations the Whit Label ATM operators (WLAOs) are required to intimate RBI in respect of arrangement made by them to have technical connectivity with the particular card network operators either directly or through their sponsor banks. The routing and settlement of cards issued under any other schemes are permitted by RBI only on the basis of bilateral arrangement put in place by the existing authorized network.
2. Dynamic Currency Conversion (DCC) facility: In case, the WLAOs desire to have currency conversion facility for international cards, the currency conversion rate will only be obtained from the AD (Authorised Dealer) Bank. WLAOs are permitted convert the amount requested by such card holders to his home currency using a Base Exchange Rate provided by the AD bank.

Delinking Cash Supply from Sponsor Bank:

WLAO may now delink cash supply from sponsor bank and tie up with other commercial banks for cash supply to WLAs. Cash supplier bank would be responsible for quality and genuineness of cash loaded at such ATMs.

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