Dynamic Currency Conversion(DCC) 

Dynamic Currency Conversion(DCC) 

DCC locks in an exchange rate at the time of making a transaction. This rate is based on a wholesale interbank rate with additional ‘markup’ (i.e. margin) applied. This differs from the exchange rate offered by the card issuerIssuer issuer A bank or financial institution that issues payment cards to consumers. Responsible for authorizations and chargebacks., which is only applied to the transaction on the day it is processed, which could be many days or weeks after the day of purchase, and not on the day of the purchase.

The DCC margin, typically 5-6 per cent, is split between the trader and their provider.

MasterCardMasterCard mastercard A global payments network enabling electronic transactions between banks, merchants, and cardholders. bans contactless DCC and on prepaid multi fx cards.

If the customer chooses to use dynamic currency conversion to pay in his or her home currency, the system authorizes the transaction in that currency at an exchange rate that is locked in instantly. The transaction remains in that currency through the settlementSettlement settlement The process of transferring funds from the issuer to the acquirer. process until it is funded back to the merchantMerchant merchant An individual or business that accepts payments in exchange for goods or services. in U.S. dollars

What is DCC?

The DCC application is a payment solution that allows foreign card holders from different countries of the world to make payments in their local currency. While this makes it easier to understand the price you are paying—and lets you avoid doing the currency conversion math—the service often comes with a poor exchange rate and other fees that can make the transaction more expensive than if you simply made it in local currency in the first place.

DCC transactionsTransactions transactions Interactions where value is exchanged for goods or services. sound attractive because the currency conversion takes place in real time at the POS. Credit card currency conversions

How does DCC work?

When the foreign card is inserted into the DCC POS/ATM, the respective device detects which countr y the card belongs to and the currency which the card can carry out transactions. If the currency is registered in the DCC system, the device automatically converts the entered TRY amount to this foreign currency and presents it to the customer as a payment option via the screen on the POS/ATM.

Which card schemes are supported by the DCC application?

The DCC application in our POSs and ATMs supports all of our cards with VISAVisa visa A leading global payment technology company connecting consumers, businesses, and banks. and Mastercard worldwide.

What are the currencies that can be used in DCC transactions?

14 different currencies are supported in the DCC application of our Bank in our POS and ATMs (USD, EUR, GBP, JPY, RUB, AUD, CAD, DKK, NOK, SAR, CHF, CNY, SEK, AED).

Advantages of DCC for the card holder?

The card holder is able to make the payment in his/her preferred currency.
He/she is able to see how much amount will be reflected in his/her credit card statement at the time of payment.
He/she is able to clearly see the exchange rate used and other costs on the slip. There is no need to wait for the credit card statement to be drawn up to learn such information.
Customer dissatisfaction caused by unexpected exchange rates and commissions are eliminated.
Commissions and exchange rates are determined by Ziraat Bank and may change during the transaction according to the financial conditions.

The DCC service authorizes and settles transactions in major global currencies while still being funded in the Merchant’s Base Currency. Both the customer and merchant will know precisely the amount of the sale in both currencies.

With Dynamic Pricing, a consumer is offered the choice of payment currencies upon entering the merchant’s website. After selecting the preferred currency, the merchant’s website will display pricing in the chosen currency (i.e. the cardholderCardholder cardholder The person or business to whom a payment card is issued.’s issuing bank’s currency) only. When the cardholder arrives at the checkout page, the transaction will continue to be represented in the chosen currency, through to the receipt/confirmation page. The final transaction amount will be displayed as a single currency amount in the cardholder’s selected currency.

DCC – Transaction Types supported

• Purchase
• Pre-Authorizations
• Pre-Auth Completion
• Partial Auth (Transaction API Only)
• Refund
• Tagged Void
• Tagged Purchase
• Tagged Refund
• Tagged Completion

Credits / Returns

If the original transaction was converted using DCC, then the credit or return must be conducted in the currency of the original sale using the prevailing rate of exchange of the date of the credit or return.

Supported card types

• Visa
• Master Card