Dynamic currency conversion allows consumers to pay for goods and services in their own currency while traveling abroad. Find out how it works and what the benefits of dynamic currency conversion are for merchants.

3. Understanding Dynamic Currency
Conversion
Debunking the misunderstanding, hype,
misinformation, opinion, and mystery.

4. DCC allows credit card holders to pay for goods and services in their home
currency while traveling abroad.
What is Dynamic Currency Conversion?
Example:
An American cardholder traveling in Africa can
pay for a hotel in US dollars rather than in the
local currency.
There are at least 53 different types of
currencies throughout Africa.

5. DCC: How it Works – Part #1
1. The cardholder presents a card at the
point of sale (POS).
2. The POS device detects that the credit
card is foreign.
3. The attendant asks the cardholder if
he prefers to pay in his home currency
or the local currency.
4. If the cardholder prefers his home
currency, the POS device converts the
sale price, based on the current
exchange rate.

6. DCC: How it Works – Part #2
5. The cardholder signs a receipt that
shows:
• The sale amount in the local
currency
• The exchange rate
• The final amount charged in his
home currency
6. The issuing credit card company may
impose additional foreign transactions
fees. Every card issuer has different
regulations regarding additional foreign
transactions fees.

7. DCC: Benefits to the Merchant
• Better customer service by allowing payment
in home currency
• Earn profits, if any, from a portion of the
foreign exchange margin typically
appropriated by the MasterCard or Visa
schemes and the foreign issuing bank
• Reduced chargeback risks

8. DCC: Benefits to the Cardholder
• Clear understanding at the POS, during the
transaction, of the exact amount to be
charged in their home currency
• Foreign exchange margins normally applied
by Visa, MasterCard and issuing banks will
often be waived
• “Best rate” guarantees

9. www.3Gdirectpay.com
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