David Jobbins09 December 2012 Issue No:251
Universities’ increasingly important revenues from international
students are being seriously depleted by foreign exchange charges on
fees and other transactions.
In the UK alone universities spend £34 million (US$54 million) a year in foreign exchange charges, given that approximately 35% of international students make up to three payments a year by international bank transfer at a charge of £6 a transaction, with the remainder using credit cards, which carry a 1.6% surcharge each time.
But using a new system established by a UK-based company, Uni-Pay, the costs are reduced to nothing. International students pay their fees in local currencies in their home countries and the university receives payments in domestic currency (Pounds Sterling in the case of the UK).
So far six universities in the UK have signed up to the scheme and others in Colombia and Russia are in the pipeline.
But the system offers other advantages, according to Uni-pay Managing Director Simon Read.
One is the ability to demonstrate that payments have been made as part of the UK visa application process.
Students need a Certificate of Acceptance to Study (CAS) from their university, which is not normally issued until receipt of an initial deposit is confirmed.
“Most universities that receive a high volume of payments by international bank transfer will tell you that it is not easy to reconcile all of the international payments received in their bank account to individual students,” Read says.
“The correct reference is often not included on the bank statement and the amount is less than it should be due to banks creaming off their own charges.
“The net result is stressed out admissions or finance staff trying desperately to reconcile payments at peak periods, and a poor experience for the student at one of their first points of contact with their prospective university.”
Under the Uni-pay system all payments are fully reconciled for the university and the student as soon as funds are cleared, and the university can issue the CAS sooner and the student can apply for their visa earlier.
Two of the UK universities using the service are Durham and Manchester Metropolitan (MMU).
Clare Butcher, deputy director of finance at Durham, says: “It’s all been very smooth, easy and straightforward. I want to get more students using it. We will definitely be promoting this payment service further to overseas students in the coming year.”
And Paul Sheil, finance manager at MMU, added: “Our overseas students often find it difficult, costly and time consuming to transfer funds that are tied up in their home country, and this can lead to unnecessary dispute whilst we await payment.
“Increased choice in payment options is an important part of our student offering and we have seen positive interest in Uni-Pay, which is really encouraging.”
In the UK alone universities spend £34 million (US$54 million) a year in foreign exchange charges, given that approximately 35% of international students make up to three payments a year by international bank transfer at a charge of £6 a transaction, with the remainder using credit cards, which carry a 1.6% surcharge each time.
But using a new system established by a UK-based company, Uni-Pay, the costs are reduced to nothing. International students pay their fees in local currencies in their home countries and the university receives payments in domestic currency (Pounds Sterling in the case of the UK).
So far six universities in the UK have signed up to the scheme and others in Colombia and Russia are in the pipeline.
But the system offers other advantages, according to Uni-pay Managing Director Simon Read.
One is the ability to demonstrate that payments have been made as part of the UK visa application process.
Students need a Certificate of Acceptance to Study (CAS) from their university, which is not normally issued until receipt of an initial deposit is confirmed.
“Most universities that receive a high volume of payments by international bank transfer will tell you that it is not easy to reconcile all of the international payments received in their bank account to individual students,” Read says.
“The correct reference is often not included on the bank statement and the amount is less than it should be due to banks creaming off their own charges.
“The net result is stressed out admissions or finance staff trying desperately to reconcile payments at peak periods, and a poor experience for the student at one of their first points of contact with their prospective university.”
Under the Uni-pay system all payments are fully reconciled for the university and the student as soon as funds are cleared, and the university can issue the CAS sooner and the student can apply for their visa earlier.
Two of the UK universities using the service are Durham and Manchester Metropolitan (MMU).
Clare Butcher, deputy director of finance at Durham, says: “It’s all been very smooth, easy and straightforward. I want to get more students using it. We will definitely be promoting this payment service further to overseas students in the coming year.”
And Paul Sheil, finance manager at MMU, added: “Our overseas students often find it difficult, costly and time consuming to transfer funds that are tied up in their home country, and this can lead to unnecessary dispute whilst we await payment.
“Increased choice in payment options is an important part of our student offering and we have seen positive interest in Uni-Pay, which is really encouraging.”
No comments:
Post a Comment