What is DCC?

Dynamic Currency Conversion (DCC) is a service that allows your international customers to view prices and pay in their own home currency when using a foreign card in your payment terminal. Instead of being charged in local currency and having their bank handle the currency conversion afterward, the customer sees the exact amount in their card’s currency directly at the time of payment – and chooses which currency they would like to pay in.

When a foreign card is inserted, tapped, or swiped, the terminal automatically recognizes the card’s country of origin and offers the cardholder a choice: pay in the local currency or in the card’s home currency (for example EUR, USD, GBP). The exchange rate and any applicable markup are displayed on the screen before the cardholder confirms the payment.

The transaction is still settled to you in your local currency – DCC only affects what the customer sees and what is charged to their card.

What are the benefits for the customer?

DCC provides international customers with a more transparent and familiar payment experience:

• See and pay in a familiar currency.
  Customers see prices and pay in the currency they are used to, without needing to mentally convert from SEK.

• Know the exact cost immediately.
  The amount charged to the card is locked in at the time of purchase, so there are no surprises from fluctuating exchange rates or unknown fees added later by the customer’s bank.

• Transparent exchange rates.
  The exchange rate and any applicable markup are displayed on the terminal before the customer confirms the payment, allowing them to make an informed decision.

• Simplified expense reporting.
  For business travelers, receipts in their home currency simplify expense reporting and accounting.

It is worth noting that DCC may cost the customer slightly more than allowing their own bank to handle the currency conversion, since the exchange rate includes a markup to cover the costs associated with this functionality. This is precisely why the choice must always remain entirely with the customer – see the section regarding your responsibilities below.

What are the benefits for you as a merchant?

DCC is a value-added service that benefits your business in several ways:

• Improved service can increase purchasing willingness.
  Offering prices in the customer’s home currency creates a more welcoming and professional checkout experience, which is especially valuable within tourism, hospitality, retail, and restaurant businesses.

• No setup fees.
  DCC is included with your Loomis Pay terminal at no additional cost.

• Fewer disputes can reduce your costs.
  Unexpected exchange rates from banks, or difficulties matching transactions to receipts, may lead customers to dispute payments. With DCC, you can reduce the number of chargebacks and thereby avoid unnecessary costs.

• Settlement in your own currency.
  You still receive payment in local currency regardless of which currency the customer chooses, keeping your accounting simple.

Important – Your responsibilities as a merchant

DCC is regulated by the card networks (Visa, Mastercard, and others), and these rules exist to protect cardholders from being guided into a more expensive option without understanding it. As a merchant, it is your responsibility to ensure that DCC is always offered correctly.

Before every DCC transaction, you must ensure that:

• DCC is voluntary.
  The cardholder must always be able to choose to pay in your pricing currency. You may not make DCC the default option or make it more difficult to choose local currency.

• The choice is clearly presented.
  The cardholder must be given the option to approve the transaction either in your pricing currency local currency or in the card’s home currency.

• The amount is displayed in both currencies.
  The transaction amount must be shown in both the customer’s currency and your currency, using the correct currency codes or symbols – this is handled automatically by your terminal.

• The exchange rate and any markup are disclosed.
  The cardholder must be informed about the exchange rate source, the actual exchange rate, and any additional markup or fees applied when choosing to pay in their home currency – this information is also displayed automatically by your terminal.

You must also not:

• Influence or steer the customer toward choosing DCC instead of local currency.

• Use wording or procedures that make it difficult to pay in local currency, or that cause the customer to choose DCC automatically without realizing it.

• Communicate amounts in a way that omits or hides correct currency symbols or codes – this applies both to verbal communication and printed material.