What is DCC?
A French customer checks out of a hotel in China with charges of RMB 1,000. He chooses to pay with his Visa/MasterCard/JCB issued by a French Bank
Hotel front desk staff swipes the card with the terminal to process payment
The POS terminal will prompt the front desk staff to offer the customer with a choice of payment currency: “Sir, do you want to pay the bill in Euro 131.3 or RMB 1,000?”
Customer choose to pay in Euro 131.3. Card authorization goes through in Euros and customer signs on the receipt.
About 30 days later, the customer receives the credit card statement with charges of Euro 131.3.
Cardholder
Familiarity
• Instant conversion to a familiar currency
• Choose preferred currency
Transparency
• Cardholder knows exactly how much they are paying
• Instantly see what the transaction will cost in their home / billing currency
Simplicity & Control
• Business travelers can immediately submit expense reports knowing the exact amount of transactions undertaken abroad
Merchant
Value-added Service
• DCC enables merchants to offer a value added service to international customers
Revenue
• DCC generates a revenue stream for the merchant on a monthly basis
• Merchants see card processing as a cost budget with CIL’s DCC solution, this process becomes a new income generator
No FX risk
• There is no foreign exchange risk for the merchant or their customers
Cardholder
Value-added Service
• DCC generates a revenue stream for the merchant on a monthly basis
No FX risk
• There is no foreign exchange risk for the merchant or their customers
Competitiveness
• DCC is becoming a standard service that the merchants expect from their acquiring partner
Dynamic Currency Conversion (DCC) offers Visa/MasterCard/JCB international cardholders the choice to pay for goods or services in their home / billing currency while the acquirer and merchant realize the foreign exchange margin normally recognized by the card schemes and issuers.