Why Canadian merchants should adopt Dynamic Currency Conversion (DCC)

Merchants in popular tourist destinations and international business meeting locales likely accept payments on foreign credit cards more often than other types of businesses. From restaurants to sightseeing attractions, Canadian merchants likely get requests from customers to process transactions in their home-country currency (US dollars, for example) rather than the local currency (Canadian dollars). When this happens, merchants have the ability to offer a service called Dynamic Currency Conversion (DCC) to match customer preferences and grow business from foreign visitors. Here is what you need to know to get started.

What is DCC?

Dynamic Currency Conversion (DCC) is a service offered by acquirers like Elavon for travellers in foreign countries. When paying at a business – like a souvenir shop or food vendor – travellers can choose to pay in their home currency, rather than the local currency. This can make travellers feel more confident about their purchases, as they can see the value in their home currency and lock in the exchange rate at the time of purchase. This service is optional and pricing to the cardholder includes a currency exchange fee. Customers always have the option to decline to use DCC and can pay in the local currency instead – but may still have to pay a currency exchange fee later, depending on the features of their card.

What types of businesses benefit from DCC?

Businesses that process any volume of foreign credit cards can benefit from offering DCC – travellers may not feel comfortable making purchases from merchants who only offer the local currency and appreciate the transparency of being able to see prices in their home currency at the point of sale. When merchants enable DCC from their payments provider, the checkout screen will include details and disclosures related to the transaction – ensuring full transparency for the customer. This will also reduce risk of chargebacks by alleviating confusion about transaction values and fees during travel. Further, merchants who offer DCC can earn a rebate from their payments provider on qualified DCC transactions.

How does DCC benefit consumers?

When travelling internationally, consumers have a lot to keep track of – tickets, reservations, itineraries, foreign cash exchange, and more. Understanding the value of local money can be hard to understand, especially in countries that are less familiar to travellers. DCC allows consumers to see the cost of a meal or retail transaction, for example, in their home currency at the point of sale – rather than having to guess the exchange rate or be surprised by the actual cost later. However, if travellers do not want to use DCC, they can simply decline this option and choose to pay in the local currency instead. Foreign transaction fees may also apply with or without the use of DCC, depending on the specific features of the credit cards that consumers use.

How to get started

Elavon offers DCC for 66 global currencies – including US dollars, Euros, Japanese yen, and more. Canadian merchants can cater to the needs of foreign travellers, increase transaction transparency, and create new revenue opportunities. Contact us to learn more about getting started.

* By selecting this link, you will leave Elavon content and enter a third-party website. Elavon is not responsible for the content of, or products and services provided by this third party, nor does it guarantee the system availability or accuracy of information contained in the site. This website is not controlled by Elavon. Please note that the third-party website may have privacy and information security policies that differ from those of Elavon.