Dynamic Currency Conversion is a unique service, which allows card transactions to be processed in the cardholder's home currency. The cardholder is given the option to pay in the currency of their card or the currency of the country in which they are purchasing.
The DCC process gives the option to convert the transaction into the cardholders chosen currency at a competitive exchange rate. The cardholder will see:
a) the local currency amount
b) the exchange rate
c) the amount in the cardholders chosen currency
Once a currency is selected by the customer, the transaction remains in that currency for the entire processing and settlement process. Both merchant and cardholder know the exact transaction amount at the time of the sale. This brings price transparency to both the merchant and the cardholder.
This diagram represents the traditional system Vs the DCC system that Monex implements on a worldwide basis. In the DCC transaction, the merchant is still settled in local currency but by locking in the foreign exchange levy at the point and time of sale, the merchant also shares in the additional revenue that is generated from every transaction.
This added value service is very attractive to any business with a high percentage of foreign card transactions.
Double Click Image to Enlarge