What is DCC?
DCC stands for Dynamic Currency Conversion which is a service you may be offered when paying by credit or debit card for goods and services in a country that has a currency different from yours.
How does it work?
When you use your credit or debit card to make a purchase in a country with a different currency, you can be offered a choice.
You can pay the price, in the local currency, of the country you are visiting.
This means your bank will convert the transaction into your currency and apply their applicable fees and charges. You find out later the final cost of the transaction in your currency.
You can agree the price, in your home currency at the point of purchase.
This means the transaction is converted at the point of purchase. The exchange rate used includes applicable fees and you find out immediately the cost of the purchase in your currency.
It is important to understand that DCC is not an additional charge. When DCC is selected, the exchange rate and any fees applied to the transaction replace those that would normally be applied by the consumers own bank.