Dynamic Currency Conversion (DCC) is a service that allows international customers to pay in their home currency rather than the merchant’s. At checkout, the customer is shown the option to convert the amount using a pre-disclosed exchange rate.
DCC can help improve the customer experience — but only if it is implemented correctly. You can’t automatically apply DCC to transactions; you have to request and obtain cardholder consent. Card brands (Mastercard, Visa, etc.) have regulated DCC transparency and opt-in requirements. Failing to meet these requirements could result in easily avoidable chargebacks.
If you serve international customers, DCC may increase your conversion rate by removing uncertainty around foreign charges. AltoPay provides options for DCC integration where applicable and ensures you remain compliant with network rules on rate disclosure.
For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.
