What is Dynamic Currency Conversion (DCC)?
Dynamic Currency Conversion, or DCC, is a payment option offered at some shops, restaurants and ATMs when you use a foreign card. It lets you see the bill in your home currency at the point of sale instead of the local currency.
Why it feels convenient
Seeing the charge in familiar money removes mental math and makes it easier to decide quickly. For travellers, that instant clarity can be comforting — you instantly know what appears on your statement.
That apparent simplicity comes at a price. The amount shown under DCC almost always includes additional spreads and fees charged by the merchant or the payment service provider. These markups are typically higher than the exchange rate and fees your own bank or card network would apply.
In short, DCC may let you understand the charge immediately, but it often increases the total cost of the transaction.
How merchants and providers benefit
Merchants and payment processors can earn commissions from DCC. Because the conversion is performed at the point of sale, the provider sets the exchange rate and can add a sizeable margin. That structure explains why DCC rates tend to be less favourable than bank or card network rates.
How to avoid paying more
- Choose to pay in the local currency. Decline DCC and accept the charge in the country’s currency — your card network will handle the conversion, usually at a better rate.
- Know your card’s fees. Check whether your card charges foreign transaction fees; some cards offer near-interbank rates with no extra fees.
- Review receipts. If DCC was applied without your clear consent, ask for a corrected receipt or dispute the charge with your card issuer.
- Use contactless or chip payments. These methods often prompt the DCC option, so be ready to decline and select local currency.
Quick checklist before you pay
- Is the amount shown in your home currency? If yes, ask whether DCC is being applied.
- Compare the converted amount with a rough estimate using the current exchange rate.
- Decline DCC if you want your bank or card network to do the conversion.
DCC can seem helpful, but the extra spreads and fees usually make it a more expensive choice. A small moment to check the currency option at checkout can save you money on every international purchase.