Dynamic currency conversion

Dynamic currency conversion (DCC) is a financial service that allows

to make international purchases in their home currency while using their credit or debit cards abroad. When a cardholder makes a transaction in a foreign currency, the merchant offers the option to convert the purchase amount into the cardholder's native currency at the

point of sale

. This conversion is based on real-time exchange rates, providing transparency to the cardholder regarding the transaction cost in familiar terms.

While DCC offers convenience by displaying transactions in a familiar currency, it often comes with additional fees and less favorable exchange rates compared to those offered by the cardholder's issuing bank. Merchants partnering with DCC providers receive a percentage of the conversion fee, creating a potential revenue stream.

Allowing cardholders to decide on currency conversion ensures that they are aware of potential additional fees associated with DCC. When users have the autonomy to select their preferred currency during transactions, it diminishes the probability of

disputes

arising from misunderstandings or dissatisfaction with the chosen currency.