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Process foreign exchange transactions in travel and tourism

URN: PPLTT17
Business Sectors (Suites): Travel and Tourism
Developed by: People 1st
Approved on: 2021

Overview

This standard is about maintaining and undertaking day-to-day foreign exchange services within a travel or tourism environment. This involves receiving, handling and storing stocks of foreign currencies, processing customers’ requirements for exchanging currency and providing current information on exchange rates, limits and restrictions, as well as completing stock and sales records and documenting selling and buying transactions.

The standard is for staff engaged in foreign exchange activities either face-to-face or remotely.

When you have completed this standard, you will be able to demonstrate your knowledge of and ability to:
• Process foreign exchange transactions in travel and tourism

Performance criteria

You must be able to:

1. Place orders for foreign exchange with your suppliers in time to meet anticipated demand and your organisation's procedures 2. Confirm orders for foreign exchange are kept within your organisation's agreed limits 3. Check stocks of foreign exchange to ensure the type and quantity held meet your customers' requirements at the time of transaction 4. Maintain the required foreign exchange stock in line with your organisation’s procedures 5. Comply with your organisation's foreign exchange audit requirements 6. Store currencies in line with your organisation's security procedures 7. Confirm currency stock receipt records are accurate and up to date 8. Display current currency buying and selling exchange rates following organisational procedures 9. Recommend the most advantageous currency accepted in the country your customers are travelling to, when relevant 10. Advise customers on the best mix of currencies and currency cards to meet their individual needs 11. Calculate each transaction using the relevant exchange rate 12. Confirm all transactions are made in compliance with current legislation 13. Explain the transaction and any costs to your customers in a way they will understand 14. Explain any restrictions attached to foreign exchange products, when relevant 15. Process foreign exchange transactions in line with your organisation’s procedures and relevant legal requirements 16. Identify and take action to resolve any suspect transactions, following relevant legal and your organisation's procedures 17. Confirm all your transaction records are accurate and up to date and your reconciliation balances at the end of your shift 18. Follow your organisation’s procedures to maintain the safety and security of currency, documents, customers and yourself

Knowledge and Understanding

You need to know and understand:

1. The current legislation affecting foreign exchange services and regulations relating to money laundering 2. Where to find information on national currencies worldwide and currency codes, currency limits and / or restrictions, and available alternatives 3. The currencies of the countries to which your organisation sends large amounts of customers and the seasonal demand for particular currencies 4. Where your organisation buys foreign currency and currency cards from 5. The purpose and function of money transfer agents and when to use their services 6. Where to find information on orders and how to calculate anticipated needs and the importance of accurately forecasting needs and maintaining stocks 7. The organisation’s policy on foreign exchange stock management including the optimum amounts of stock that need to be held to meet anticipated demands, operating limits on stock holding and cash holding, the consequences of holding the incorrect levels of stock, and how to deal with non-resalable stock 8. Your organisation’s foreign exchange audit requirements 9. The types of foreign exchange rates, when and how to use them and the frequency a which they must be monitored 10. Where to find foreign current exchange rates and commission charged 11. The importance of displaying and using current foreign exchange rates 12. Your organisation’s policy on establishing local exchange rates 13. The rules related to checking calculations and when local rates must be recalculated 14. How to explain currency transactions and their costs to customers in travel and tourism 15. How to calculate total transaction charges using exchange rates and commission rates, the limits of your authority to alter them, and where to get authority to offer preferential rates in travel and tourism 16. The importance of offering rates that take into account local conditions using competitive rates and monitoring competitors 17. The significance of the spread between buying and selling rates 18. How to advise customers of the best mix of currencies and currency cards when travelling in different parts of the world 19. The importance of giving accurate information about foreign exchange to customers in travel and tourism 20. How to process and validate payments from different payment methods 21. Who to inform regarding large buy or sell transactions and the significance of passing on information about such transactions 22. Your organisation’s procedures for receiving, handling and storing stock, completing stock and sales records, processing and documenting selling and buying transactions, and the importance of following them 23. Your organisation’s procedures for maintaining the safety and security of currency, documents, customers and yourself

Scope/range

Anticipated demand:

a) Immediate use
b) Reserve stock
c) Advance orders
d) On-line orders

Foreign exchange:

a) Foreign currencies
b) Currency cards

Exchange rate:

a) Buy
b) Sell

Payment methods:

a) credit cards
b) debit cards
c) contactless cards
d) apps
e) electronic transactions
f) cash
g) bank cheques

Scope Performance

1. Work methodically and accurately  2. Be alert to security and safety risks 3. Demonstrate financial acumen

Scope Knowledge

Values

Behaviours

Skills

Glossary

Links To Other NOS

External Links

Version Number

2

Indicative Review Date

2026

Validity

Current

Status

Original

Originating Organisation

People 1st

Original URN

PPLTT17

Relevant Occupations

Business Travel Consultant, Leisure and Travel Service Occupations, Leisure Travel Consultant, Personal Service Occupations, Senior Leisure Travel Consultant

SOC Code

6212

Keywords

complete, foreign exchange, transactions