Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Dynamic Currency Conversion shopping experience:
1. Compare - without doubt the biggest advantage that the Dynamic Currency Conversion offers shoppers today is the ability to compare thousands of Dynamic Currency Conversion at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.
2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about
3. Testimonials - don't know anybody that has bought a Dynamic Currency Conversion? Wrong! If the Dynamic Currency Conversion is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.
4. Questions - Got a question about Dynamic Currency Conversion then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....
5. Reputation - Never heard of the company selling Dynamic Currency Conversion? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Dynamic Currency Conversion and build up a picture of their reputation for sales, returns, customer service, delivery etc.
6. Returns - still worried that even after all of the above your Dynamic Currency Conversion wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.
7. Feedback - happy with your Dynamic Currency Conversion then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.
8. Security - check for the yellow padlock on the Dynamic Currency Conversion site before you buy, and the s after http:/ /i.e. https:// = a secure site
9. Contact - got a question about Dynamic Currency Conversion, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.
10. Payment - ready to pay for your Dynamic Currency Conversion, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.
Dynamic currency conversion (DCC) is a financial service in which holders of
Credit card have the cost of a transaction converted to their local
currency when making a payment in a foreign currency. Currently this feature is available for
VISA (credit card) and MasterCard networks only.
For example, the following is a typical DCC transaction at point of sale. A Cardholder (say, from the United States) is travelling in Europe presents Visa/MasterCard for payment for a product priced in Euros. The credit card details are captured on the point of sale device (POS), which identifies that the card is a USA issued card. The cashier asks the cardholder to pay in US Dollars and the POS converts the Euro amount into US Dollars (based on a margined daily rate). The cardholder signs a
receipt that shows the Euro amount, Rate of Exchange and the US Dollar amount. The service guarantees that this exact US Dollar amount will be debited to the cardholder account, and the exact Euro amount will be credited to the merchant’s account.
Increasingly, internet sites and
mail order companies are also offering this service. In some cases, the cardholder may not even be aware that they are being charged in their home currency, in a process known as "back office DCC". However, "back office DCC" has been outlawed by all card schemes and participating acquiring banks and merchants can expect serious penalties imposed by the card schemes.
Among the biggest advantages to travellers according to proponents:
- the visibility of charges made in foreign countries
- the ability to enter expenses more easily (for business travellers)
- a comparable or less expensive fee than the currency conversion rates charged by credit card companies
Some providers of dynamic currency conversion also guarantee better exchange rates than customers would get from their card providers, making DCC quite compelling for consumers, given the added transparency of seeing the exact rate of exchange at point of sale rather than waiting for a statement at the end of the month.
Opponents argue that often the cardholder may not be asked if they wish to pay in their home currency and that cardholders are sometimes unaware of rates and margins used (though this is also the case where the credit card company makes the conversion). Margins added in dynamic currency conversion are sometimes higher than any currency conversion fee charged by the card issuer (which in some cases are zero). Here is a reported example of such a high margin being applied in the Washington Post. It therefore sometimes costs card holders less to transact in the local currency (and letting the card issuer do the conversion) rather than in their home currency (using dynamic currency conversion). In the majority of cases where the customer has the choice the rate will be similar to the Credit Card companies rate or better.
The main 'losers' from this system are the credit card companies themselves, who no longer reap a profit from currency conversion whenever DCC is used. For example in 2002 Visa and MasterCard reaped $3.6 billion in currency conversion fees (Business Travel News 2003), and DCC providers are increasingly taking a cut of this.
The main providers for the
Card Present Environment (POS) are
- Pulse International
- Pure Commerce
- FEXCO DCC
- FINTRAX
- Planet Payment
- Monex Financial services
- Global Currency Exchange
- Chase Paymentech
The main providers for the
Card Not Present Environment (Internet) are
- Pulse International
- Pure Commerce
- Global Currency Exchange
- FEXCO DCC
- Planet Payment
- Monex Financial services
- Chase Paymentech
External links
- Official Visa exchange rates
- Washington Post Article about DCC
Dynamic currency conversion (DCC) is a financial service in which holders of
Credit card have the cost of a transaction converted to their local currency when making a payment in a foreign currency. Currently this feature is available for
VISA (credit card) and MasterCard networks only.
For example, the following is a typical DCC transaction at point of sale. A Cardholder (say, from the United States) is travelling in Europe presents Visa/MasterCard for payment for a product priced in Euros. The credit card details are captured on the point of sale device (POS), which identifies that the card is a USA issued card. The cashier asks the cardholder to pay in US Dollars and the POS converts the Euro amount into US Dollars (based on a margined daily rate). The cardholder signs a
receipt that shows the Euro amount, Rate of Exchange and the US Dollar amount. The service guarantees that this exact US Dollar amount will be debited to the cardholder account, and the exact Euro amount will be credited to the merchant’s account.
Increasingly, internet sites and
mail order companies are also offering this service. In some cases, the cardholder may not even be aware that they are being charged in their home currency, in a process known as "back office DCC". However, "back office DCC" has been outlawed by all card schemes and participating acquiring banks and merchants can expect serious penalties imposed by the card schemes.
Among the biggest advantages to travellers according to proponents:
- the visibility of charges made in foreign countries
- the ability to enter expenses more easily (for business travellers)
- a comparable or less expensive fee than the currency conversion rates charged by credit card companies
Some providers of dynamic currency conversion also guarantee better exchange rates than customers would get from their card providers, making DCC quite compelling for consumers, given the added transparency of seeing the exact rate of exchange at point of sale rather than waiting for a statement at the end of the month.
Opponents argue that often the cardholder may not be asked if they wish to pay in their home currency and that cardholders are sometimes unaware of rates and margins used (though this is also the case where the credit card company makes the conversion). Margins added in dynamic currency conversion are sometimes higher than any currency conversion fee charged by the card issuer (which in some cases are zero). Here is a reported example of such a high margin being applied in the Washington Post. It therefore sometimes costs card holders less to transact in the local currency (and letting the card issuer do the conversion) rather than in their home currency (using dynamic currency conversion). In the majority of cases where the customer has the choice the rate will be similar to the Credit Card companies rate or better.
The main 'losers' from this system are the credit card companies themselves, who no longer reap a profit from currency conversion whenever DCC is used. For example in 2002 Visa and MasterCard reaped $3.6 billion in currency conversion fees (Business Travel News 2003), and DCC providers are increasingly taking a cut of this.
The main providers for the
Card Present Environment (POS) are
- Pulse International
- Pure Commerce
- FEXCO DCC
- FINTRAX
- Planet Payment
- Monex Financial services
- Global Currency Exchange
- Chase Paymentech
The main providers for the
Card Not Present Environment (Internet) are
- Pulse International
- Pure Commerce
- Global Currency Exchange
- FEXCO DCC
- Planet Payment
- Monex Financial services
- Chase Paymentech
External links
- Official Visa exchange rates
- Washington Post Article about DCC
