What is actually being offered
Dynamic currency conversion (DCC) lets a merchant's payment processor convert the transaction into your home currency at a rate it picks. You see a familiar number on the terminal, and the margin inside that number goes to the processor and merchant.
What it costs
DCC margins are commonly several percent wider than what your own card issuer would apply. On a 400 dinner, a 5% margin is 20 — for a convenience worth nothing. Run the comparison with the percentage calculator using the difference mode.
How to decline it
- On a terminal, choose the option showing the local currency.
- At an ATM, decline any "conversion" or "guaranteed rate in your currency" prompt.
- Online, if a checkout pre-selects your home currency, look for a currency switcher.
The exception
If your card issuer's own foreign transaction fee is unusually high, a DCC rate could occasionally be competitive. That is a reason to check your card's terms once, not to accept DCC by default. See how to avoid currency conversion fees.
Know the fair number first
Check the pair on the converter before you travel so the terminal cannot surprise you. If the offered total is far from the mid-market figure, you are looking at DCC.
Common questions
What is dynamic currency conversion?
It is an option offered at the point of sale to charge your card in your home currency instead of the local one, using a rate chosen by the merchant's payment processor.
Should I ever accept it?
Rarely. The convenience of seeing a familiar currency usually costs several percent. Paying in local currency lets your own card issuer do the conversion.
Can I change my mind after choosing?
Ask the cashier to void and re-run the transaction before it completes. Once settled, the conversion generally stands.