Back to BlogDynamic Currency Conversion: Unlocking Hidden Revenue for Merchants
As cross-border shopping and international travel continue to grow, providing a seamless payment experience for customers has become critical—especially for sectors like boutique and luxury hotels, where every guest interaction shapes the brand experience.
One powerful way to enhance that experience is through Dynamic Currency Conversion (DCC), a solution that not only offers convenience for shoppers but also opens up a new revenue stream for merchants.
This isn’t theory—it’s proven. Following Shift4’s acquisition of Global Blue, our DCC capabilities are backed by one of the most trusted names in international shopping and tax-free services. This means enterprises can pair currency choice with multi-currency acceptance, tax-free shopping, gift and loyalty programs, and more—all through a single supplier and integration.
What Is Dynamic Currency Conversion (DCC)?
Dynamic Currency Conversion allows international customers to pay in their local currency at the point of sale or online checkout. When a customer opts for DCC, the amount is converted at the current exchange rate, and they see the total in a currency they’re comfortable with, providing transparency and ease.
- For customers, DCC means they know exactly what they’re paying, avoiding potential confusion around exchange rates or unexpected fees from their banks.
- For merchants, DCC opens up a valuable opportunity to earn additional revenue with every transaction. With Shift4, it comes as part of a broader solution designed for enterprises—powered by a modern tech stack, delivered with white glove service, and supported by innovative commercial models.
Financial Benefits of DCC for Merchants
1. Increased Revenue Potential
With DCC, merchants earn a share of the currency conversion fee each time a customer chooses to pay in their local currency. This additional revenue is generated passively, without requiring any adjustments to existing pricing or operational costs. On the Shift4 platform, this also pairs with higher partner residuals and DCC-driven profit share, helping offset the high cost of change and improving long-term margins.
2. Enhanced Customer Experience
Providing a familiar currency option can increase customer satisfaction, helping to boost conversion rates and encourage repeat business. For hospitality brands, this complements a unified guest experience from check-in to check-out.
It also eases spending stress for travelers, who often find managing unfamiliar currencies confusing and inconvenient, giving them more confidence to make purchases abroad.
How Dynamic Currency Conversion Works for Shift4 Merchants
The DCC feature allows merchants to offer international customers the choice to pay in their home currency, making checkout smoother and more transparent.
As the exchange rate is fixed at the time of purchase, customers avoid the risk of currency fluctuation, adding further peace of mind to the transaction. Here’s how it works:
- Initiate Payment: The merchant starts the payment as usual, and the shopper presents their card to the Shift4-enabled terminal.
- Currency Detection: The terminal automatically identifies the shopper's home currency based on their card's country of origin.
- Choice of Currency: If the shopper’s home currency is different from the local currency, the terminal prompts them to choose:
- Local Currency – The transaction proceeds in the merchant’s currency. Here the cardholder will run the risk of a higher conversion rate being applied by their bank.
- Home Currency – Foreign-exchange conversion is applied, allowing the shopper to pay in their own currency.
- DCC Receipt: If DCC is selected, the Shift4-generated receipt includes details of the currency conversion, ensuring transparency.
Our modern Android-based terminal experience makes this process quick and intuitive for both staff and guests, while our in-development Terminal Management System (TMS) will allow enterprises to manage DCC and other services centrally across multiple locations and countries.
Real-World Example: DCC in Action
At a popular beachfront hotel bustling with international tourists, the management decided to roll out Shift4's Dynamic Currency Conversion to better serve its growing number of overseas guests.
One evening, a guest from the UK checks out and pays with their card at the front desk. The hotel’s POS terminal instantly detects that the guest’s billing currency is GBP, while the local currency is EUR. The terminal prompts the guest to choose between paying in Euros or British Pounds. Opting for GBP, the guest is relieved to pay in their home currency and avoid any surprise foreign exchange fees from their bank.
This simple choice not only makes the payment process more transparent and convenient for the guest, but it also boosts the hotel’s revenue through the foreign-exchange conversion fee. What’s more, this seamless experience leaves guests feeling satisfied and appreciated, encouraging positive reviews and repeat visits from international travelers. For the hotel, it’s a win-win: happier customers and an added income stream—all thanks to DCC.
Turn the Currency Choice into Profit
Dynamic Currency Conversion has the potential to transform international sales, providing benefits for both customers and merchants. For customers, it’s about convenience and clarity, and choice. For merchants, it’s an opportunity to tap into hidden revenue and enhance customer satisfaction.
As global shopping continues to rise, offering a smooth, localized payment experience has never been more important. By implementing DCC, merchants can better meet the needs of their international customers while driving incremental revenue growth.
Ready to explore the benefits of DCC? Connect with our team to find out how you can integrate DCC into your payment process and start unlocking new revenue today.