What is Dynamic Currency Conversion?
Dynamic Currency Conversion (DCC) occurs when a foreign card terminal or ATM detects your card's home country and asks: "Would you like to be charged in USD ($112.40) or local currency (€100.00)?"
Why You Should Always Decline DCC
Even if you hold a credit card or debit card with 0% foreign transaction fees (like Chase Sapphire Preferred or Charles Schwab Investor Checking), accepting DCC overrides Visa/Mastercard's wholesale interbank exchange rate and lets the foreign merchant's processor apply a 4% to 10% currency markup.
- Golden Rule: Always select Local Currency (EUR, GBP, JPY, MXN, etc.) on payment terminals and ATMs abroad.