Dynamic Currency Conversion (DCC) is a service that enables customers to make payments in their local currency when traveling abroad.
Uses of Dynamic Currency Conversion
Dynamic Currency Conversion is used by some merchants and payment processors to provide customers with a convenient way to pay for goods and services when traveling abroad. Typically offered at the point of sale, DCC enables customers to see the cost of their transaction in their own currency, rather than the currency of the merchant’s country, which can help to prevent confusion and reduce the risk of overcharging.
DCC is also used by merchants and payment processors to generate revenue, by using a less favorable exchange rate for the conversion than the rate offered by the customer’s bank.
How Dynamic Currency Conversion Works
When a customer chooses to pay in their local currency using DCC, the transaction is processed in that currency, and the funds are converted at the exchange rate determined by the payment processor or merchant. The customer is then charged in their local currency, and the transaction appears on their credit card statement in their local currency.
