Chapter 3 : A bit more Technical
IN THIS LESSON
If your business serves international customers, you may have been offered the option to enable Dynamic Currency Conversion (DCC) on your card machine. But is it a smart move — or just another hidden fee?
In this article, we explain what DCC is, how it works on UK terminals, and the pros and cons of offering it. We also help you decide whether it’s right for your business and your customers.
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Dynamic Currency Conversion is a feature that allows foreign cardholders to pay in their home currency at the point of sale or online — instead of the local currency (GBP in the UK).
The card machine automatically detects the card’s origin and offers the customer a choice:
Pay in GBP (local currency), or
Pay in their home currency (e.g. USD, EUR, AUD)
DCC displays the converted amount, the exchange rate used, and often an added margin or fee.
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Customer inserts or taps a foreign-issued card
The DCC-enabled terminal identifies the card’s country and currency
The customer is offered two options:
Pay in GBP (default)
Pay in their home currency (via DCC)
If they choose DCC, the terminal:
Converts the amount at a pre-set exchange rate
Displays the converted value and rate
Charges the card in their home currency
📌 Keywords: DCC terminal, foreign card transaction, currency conversion card machine
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DCC is typically offered to businesses with high levels of international footfall, such as:
Hotels and guest houses
Airport retailers or duty-free shops
Tourist attractions
Car hire companies
High-end retail outlets
Restaurants in tourist areas
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✅ Benefits of Enabling DCC
✔️ Potential commission — some providers share a small % of the DCC margin with the merchant
✔️ Transparency — customers see the amount in their own currency upfront
✔️ Fewer chargebacks — reduces disputes over exchange rate surprises
✔️ Convenient for tourists — some customers feel more comfortable seeing their native currency
❌ Drawbacks and Risks of DCC
✖️ Often more expensive for the customer — the exchange rate used is usually worse than the bank’s rate
✖️ Can result in complaints if customers feel they were pushed into it
✖️ Adds complexity at the checkout
✖️ May affect trust or customer satisfaction if perceived as a hidden charge
✖️ Not all cardholders are aware they have a choice
📌 Some card schemes (like Visa and Mastercard) require that DCC must be clearly optional and not automatically applied.
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DCC includes:
A conversion fee or markup (typically 3–5%) added to the exchange rate
In some cases, a share of this fee is returned to the merchant
Your provider may charge extra for enabling DCC on the terminal
This means your customer pays more overall when using DCC — and your business may benefit financially (slightly), but only if the provider shares the commission.
DCC vs FX Fees – What’s the Difference?
Should You Enable DCC? Key Questions to Ask
Do you regularly serve international customers or tourists?
Do you want to offer currency choice at checkout?
Will your team be trained to clearly explain DCC vs GBP?
Are you happy to be linked to a fee that may cost the customer more?
Are you being offered a commission share for enabling DCC?
Final Thoughts
DCC can be a useful feature for certain businesses — especially in travel, hospitality, and luxury retail. But it’s not always a benefit for the customer, and many businesses prefer to avoid offering it due to concerns about fees, transparency, and trust.
If you do enable DCC, make sure your team understands how it works and can explain it clearly to avoid complaints.
🔍 Compare now or speak to an expert – no pressure, no jargon, just practical advice.