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 (or Acquiring bank) Acquirer (or Acquiring bank) A bank or a financial institute, which acquires funds for its merchant from a shopper. To accept card payments, an acquirer should be licensed by corresponding card networks and either partner with a payment processor, or be a payment processor itself. and merchant (rebates) 

The fees for the DCC Service are charged in full to the Cardholder and Merchant receives Settlement 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 Chargeback 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 eCommerce store locations.”

Lower Chargebacks: Another benefit of DCC transactions 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 Visa or MasterCard 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.