Dynamic currency conversion

Merchants can use the Dynamic currency conversion (DCC) service to give cardholders the option to pay in their own currency if the merchant’s currency is different. For example, a cardholder from the U.S. wants to purchase goods from a merchant in Ireland. The merchant can offer the cardholder two payment options with the DCC service:

• Pay in U.S. dollars: Use the exchange rate of the merchant's acquiring bank.
  • The payment device displays the total amount of the payment, which includes the cost of the goods, the exchange rate, and mark-up percentage for the payment.
• Pay in Euros: Use the exchange rate of the cardholder’s bank.
  • The payment device displays the cost of the goods, which does not include the exchange rate or potential fees from the cardholder’s bank.

Important things to consider

To offer DCC:

• The merchant must be based in the UK or Ireland.
• The merchant’s acquiring bank must be Elavon or AIBMS.
• The cardholder’s card must be Mastercard, VISA, or Diners Club International.

How does a payment with DCC work?

1. The cardholder presents their card to the payment device for payment.
2. The payment device displays a decision screen to the cardholder.
3. The cardholder chooses to pay in their own currency or the merchant's currency, and payment is taken from the cardholder’s account.
4. The merchant prints a receipt for the payment that contains the details of the DCC offer.

Note: If a card isn’t eligible for DCC, the payment device should run a standard payment without the DCC decision screen.

Regulations

If a merchant offers DCC to a cardholder, the cardholder must be fully aware of the details of the DCC offer. Therefore, the decision screen and receipts have specific regulations.

Important: The decision screen and receipt must not include misleading text or use inappropriate layout or font sizes that may confuse the cardholder.

Decision screen

The decision screen must include the following information:

• Clear instruction to the cardholder to explain what they need to do, for example, “Select currency:”
• Exchange rate of the transaction
• Total amount of the transaction in the merchant’s currency
• Total amount of the transaction in the cardholder’s currency
• Mark-up percentage on the transaction
  • If the currency is in the European Economic Area, you must add the suffix “over ECB rate” to the mark-up percentage, for example, “3.72% over the ECB rate”
• Clear options to allow the cardholder to accept or decline the offer
• A disclaimer that states: "I have been offered a choice of currencies and have chosen to accept DCC and pay in {Cardholder Currency} at today’s exchange rate."
• Details about the provider and the source of the exchange rate: "DCC provided by {provider}. {Provider} receives Foreign Exchange Transaction Services from {source}."

Receipt

The receipt must include the following information:

• Exchange rate of the transaction
• Total amount of the transaction in the merchant’s currency
• Total amount of the transaction in the cardholder’s currency
• Mark-up percentage of the transaction
  • If the currency is in the European Economic Area, you must add the suffix “over ECB the rate” to the mark-up percentage, for example, “3.72% over the ECB rate”
• A disclaimer that states: "I have been offered a choice of currencies and have chosen to accept DCC and pay in {Cardholder Currency} at today’s exchange rate."
• Details about the provider and the source of the exchange rate: "DCC provided by {provider}. {Provider} receives Foreign Exchange Transaction Services from {source}."