Dynamic Currency Conversion (DCC): The Truth Behind the Myths

Dynamic Currency Conversion (DCC) has become a familiar option for international travelers and global shoppers. When using a foreign card abroad, DCC allows customers to pay in their home currency rather than the local one. While many consumers appreciate the clarity and convenience this provides, there are also several misconceptions surrounding how DCC works, particularly around cost and transparency.

In this article, we’ll break down the most common myths about DCC, clarify how the service actually works, and explain why it can benefit both merchants and consumers when implemented correctly.

Myth #1: “DCC Has Hidden Fees”

This is the biggest misconception, and it’s simply not true.

DCC is designed to be completely transparent. When a foreign card is used, the terminal automatically offers the customer the option to pay in their home currency and clearly displays:

The exchange rate being used
The total amount in their home currency
The equivalent cost in the local currency

There are no hidden fees from the DCC service itself or surprise adjustments later on a bank statement. (Please note, your card issuer may still apply foreign transaction fees or exchange rate adjustments, which are separate from DCC.)

Myth #2: “DCC Always Costs More”

The cost depends on a few factors, including the cardholder’s issuing bank fees. Many banks apply foreign transaction fees or charge their own exchange rates, which can vary.

With DCC, the exchange rate is presented upfront, allowing the customer to decide. Merchants can only offer DCC as an option, but are required not to push for the solution, leaving their customer in charge of the decision. Customers can choose DCC if they prefer knowing exactly what they’ll pay, or opt to pay in the local currency if they think their bank’s rate will be better.

The choice is always the customer’s, and responsible offering ensures transparency and trust.

Myth #3: “Merchants Push DCC to Take Advantage of Travelers”

Offering DCC is not about taking advantage. It’s about providing clarity and convenience to international customers. When customers understand the cost in a currency they recognize, they feel more in control.

And yes, merchants may earn a small commission on DCC transactions, but that doesn’t change the transparency of the rate displayed. It simply means the business is being compensated for offering an additional service.

Customers see the price → They make the choice → The merchant earns a small share. No surprises. No deception.

Myth #4: “DCC Creates More Chargebacks for the Merchant”

In fact, the opposite is true. Because the customer:

Sees the total amount in their currency
Accepts the displayed exchange rate
Confirms the transaction with full visibility

There is far less room for misunderstanding or dispute later. Transparency leads to fewer chargebacks, not more.

So What’s the Real Story?

At its core, DCC is about transparency, choice, and confidence at checkout. Consumers gain clarity and convenience by seeing the total amount in a currency they recognize, while merchants benefit from an improved customer experience and the potential to generate additional revenue from international transactions. When implemented responsibly — with clear communication and visible exchange rates — DCC becomes a solution that works for both sides.

Explore DCC with Shift4

Shift4’s DCC solution provides fair, transparent pricing with real-time exchange rates and a frictionless checkout experience for global customers. It also creates an opportunity for merchants to increase revenue with each DCC transaction, without adding complexity to daily operations. If you're looking to enhance your customer experience or support more international shoppers, DCC can be a valuable addition to your payment strategy.

Ready to learn more? Contact us today to see how Shift4 can support your business.