DCC SERVICE
Dynamic currency conversion and how we can help you
Dynamic Currency Conversion (DCC) is a financial service used in international transactions, where a customer from one country makes a purchase with a credit or debit card in another. DCC allows the transaction to be processed at the point of sale in the currency of the cardholder’s home country. The global credit card payments market is expected to jump from $524.9 billion in 2022 to $1.2 trillion by 2032, and cross-border payments are an important part of this growth.
Card detection
When a customer uses a foreign credit or debit card in your store or in your e-shop, the system identifies the country of origin of the card.
DCC offer
A terminal equipped with DCC technology will automatically offer the cardholder the option to complete the transaction in their home currency. The amount includes the exchange rate and any other fees associated with the conversion.
Customer choice
The cardholder can accept the DCC offer and pay in their home currency or decline it and pay in the local currency.
Transaction completion
If the customer selects DCC, the transaction will be processed and charged to the card in the cardholder's home currency using the displayed exchange rate.
What will the service bring to you?
Your benefit from the DCC service is that you earn additional income through commissions or fees associated with the currency conversion process from the payment provider.
Customer benefits
DCC offers an immediate, clear idea of how much a transaction will cost in the cardholder’s home currency. This can be particularly appealing to customers who prefer to know the exact cost up front without having to worry about future exchange rate fluctuations.
DCC calculator
Come and calculate what the DCC service can bring to your company.
Our tip
Calculate the potential revenue from your card acceptance right away. DCC is typically supported by Visa and Mastercard.
What are the advantages and disadvantages for your business?
DCC offers immediate price transparency in the customer's home currency, but often at a higher cost due to exchange rate markups and flat fees. Traditional issuing bank conversion can be more cost-effective for the customer, but lacks the upfront pricing clarity of DCC. DCC offers businesses an additional revenue stream and can be more convenient for customers, but also comes with implementation complexity and potential customer churn due to perceived high costs.
Advantages
- Payment simplicity: DCC simplifies the purchasing process for international customers by allowing them to see prices and pay in their home currency. This eliminates the need for the customer to calculate currency conversions and provides a more intuitive shopping experience.
- Familiarity and comfort: Paying in a familiar currency can be reassuring for customers, especially in an international environment where different currencies can complicate purchases.
- Instant understanding of costs: DCC provides customers with accurate costs in their own currency at the point of sale, eliminating uncertainties related to exchange rate fluctuations or unknown fees that the customer's bank may charge.
Disadvantages
- Unfavorable exchange rates: DCC often involves exchange rates that are less favorable than standard bank rates. This surcharge can result in higher costs for customers, making purchases more expensive than they would be if processed in local currency.
- Lack of awareness: Customers may not be fully aware of the additional costs associated with DCC. They may use DCC without knowing that it may be more expensive than having their bank do the currency conversion.
- Complex regulations: Businesses offering DCC must navigate and comply with complex international financial regulations, which can be resource-intensive, but this is usually taken care of by the payment terminal provider.
Applications supporting DCC service
