Benefits of DCC for Merchants

Benefits to Merchants for DCC

The customer will typically be charged between 1%-%6% of the total transaction amount on a global average. – Shared between acquirerAcquirer acquirer A financial institution or payment processor that manages the merchant account, enabling businesses to accept card payments. Acquirers receive all transactions from the merchant and route them to the appropriate issuing bank. and merchantMerchant merchant An individual or business that accepts payments in exchange for goods or services. (rebates) 

The fees for the DCC Service are charged in full to the CardholderCardholder cardholder The person or business to whom a payment card is issued. and Merchant receives SettlementSettlement settlement The process of transferring funds from the issuer to the acquirer. in the currency of the original sales transaction. The Cardholder DCC Fee (by default 3%) can be changed on request of Merchant in the range of 1.2%-6% and will be shared between Adyen and the Merchant as agreed in the Merchant Agreement.

In case of a ChargebackChargeback chargeback A dispute raised by the cardholder that results in reversal of a transaction. Can lead to penalties for merchants. on the Transaction to which DCC is applied, the fee charged to the Cardholder may need to be returned, in which case Merchant must also return its share of the fees. Supported currencies for DCC are set out in the then current DCC manual published by Adyen on the Customer Area.

70-90% take rate. The acceptance percentage tends to increase sharply as a merchant’s sales people gain confidence explaining the benefits of DCC to customers or when a merchant implements a hardware/software solution to more effectively prompt for DCC.

Increased customer satisfaction The ability to pay in their own currency attracts foreign customers and entices them to spend more: According to The Green Sheet, by offering DCC services “merchants increase their average ticket and the actual and virtual foot traffic to their real-world and eCommerceeCommerce ecommerce Commercial transactions conducted electronically on the internet. Includes digital payments, shopping carts, and fraud prevention. store locations.”

Lower Chargebacks: Another benefit of DCC transactionsTransactions transactions Interactions where value is exchanged for goods or services. is that they can substantially reduce the possibility of chargebacks on purchases made with foreign credit cards. That’s because customers are not as likely to be surprised or dismayed by the final billed transaction amount since it is settled in their native currency at the point-of-sale.

Extra Revenue:

1. The amount of total purchases by customers who use DCC-eligible credit cards (i.e., customers paying with a foreign-issued VisaVisa visa A leading global payment technology company connecting consumers, businesses, and banks. or MasterCardMasterCard mastercard A global payments network enabling electronic transactions between banks, merchants, and cardholders. associated with a DCC-supported currency). 

2. The percentage of these customers who choose to use DCC to pay in their own currency. According to industry estimates, the DCC acceptance rate ranges between 70 and 90 percent.