Also called: DCC, Cardholder Preferred Currency (CPC), Point-of-interaction (POI) currency conversion
What Dynamic Currency Conversion is
Dynamic Currency Conversion (DCC) gives a customer with an international card a choice at checkout: pay in your currency, such as US dollars, or in the billing currency linked to their card. A US retailer, hotel, restaurant, or ATM might offer it when a visitor uses a card issued in another currency.
The DCC provider uses card information to identify the billing currency and supplies a quote. The screen should show both amounts before the customer decides. If the customer accepts DCC, the transaction is charged in their card’s billing currency. If they decline, it is charged in your currency and their issuer handles the conversion.
DCC can create fee revenue, but the customer must freely choose it after seeing the rate and both amounts.
What it means for your costs
The quoted DCC exchange rate includes a foreign-exchange markup. The provider and merchant share the conversion fee under their commercial arrangement. There is no universal DCC rate or standard merchant share, so the quote and your agreement determine the economics. DCC is an optional service, not a card-network interchange discount.
For your customer, the markup is part of the exchange rate rather than a separate conversion charge on the card statement. If the customer pays in your currency instead, their issuer sets the conversion rate and may add a foreign-transaction fee. DCC can add revenue for your business, but an unclear or pressured offer can lead to complaints and disputes.
What the customer must see
Before the customer chooses, show the amount in both currencies, both currency symbols or codes, the exchange rate, and any additional fees. Present the two options with equal prominence. Do not preselect DCC, steer the customer toward it, or treat silence as consent. If the customer makes no explicit choice, process the sale in your currency.
A receipt for an accepted DCC transaction should show both amounts, the currencies, and the rate. Mastercard’s 2025 merchant guide also says refunds must use the original currency, with permitted refund methods tied to the original transaction or its exchange rate. A mismatch between the offer, authorization, and refund can create a dispute.
Where DCC goes wrong
The main risk is converting a customer’s purchase without informed consent, or displaying a rate or fee that is hard to understand. Mastercard identifies unwanted or incorrect conversion, double conversion, unexpected fees, and conversion losses as risks. Incorrect DCC or failure to give the customer a real choice can support a chargeback.
DCC does not have one standard merchant-statement line in the research available for this entry. To assess its value, compare the DCC fee share in your commercial terms with your DCC transaction records, then review complaints, refunds, and disputes linked to those sales.
What you can actually change
- Review the rate. Get the DCC quote, markup, additional fees, and your share in writing. Compare the quote shown at checkout with the terms in your merchant agreement.
- Make the choice neutral. Show both currencies and the full rate before payment. Train staff not to select a currency for the customer, and configure the terminal to require an explicit choice.
- Audit DCC sales. Keep transaction records showing the currency selected, the quote, and the receipt details. Track refunds and disputes so you can spot incorrect conversions or customer complaints.
Frequently asked questions
Is Dynamic Currency Conversion good for merchants?
DCC can provide your business a share of the conversion fee, but the amount depends on your commercial arrangement. It also creates customer-service and dispute risk if the rate, fees, or choice are unclear. Compare actual fee revenue with complaints, refunds, and disputes.
Can a customer be required to accept DCC?
No. The customer must be able to accept or decline DCC and choose either currency. Present both options clearly and neutrally. If the customer does not make an explicit billing-currency choice, process the transaction in your currency.
Does DCC appear as a separate fee on the customer’s card statement?
The conversion markup is included in the quoted exchange rate, so the customer sees the purchase amount in their billing currency without a separate DCC conversion charge. The card statement does not show the same conversion details as a transaction processed in the merchant’s currency.
Who sets the DCC exchange rate?
The DCC provider supplies the quote and its exchange rate includes a foreign-exchange margin. Mastercard’s 2025 merchant guide says the merchant and acquirer are responsible for the DCC rate and fees, including when they use a provider. The commercial terms determine the arrangement.