Dynamic Currency Conversion

Dynamic Currency Conversion (DCC) is a service provided by acquiring banks, used by merchants at the point of sale. When a customer selects DCC, their payment is immediately converted to the merchant’s currency, showing the exact amount in the customer’s own currency during the transaction.

DCC guarantees immediate rates but usually includes a markup above market exchange rates and a service fee. If DCC is declined, the credit card network handles the currency conversion later, using current market rates without a markup but applying their own conversion fees.

The advantage of DCC is transparency for customers during the transaction, knowing exactly how much they’ll be charged. However, due to the markup and fees, DCC can be more expensive than the network’s conversion at market rates. Offering DCC must be optional, ensuring customers have an informed choice.

Some customers may regret using DCC and mistakenly claim chargebacks as processing errors. To combat friendly fraud, merchants can present transaction data showing that the customer chose DCC voluntarily.