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Dynamic currency conversion (DCC) or cardholder preferred currency (CPC) is a financial service in which credit card holders, when making a payment in a foreign country, have the cost of a transaction converted to their home currency at the point of sale. Though it allows customers to see the exact amount their card will be charged, expressed in their home currency, the exchange rate is generally less favorable than that offered through their credit card company.〔The Age, 30 March 2015: (Dynamic currency conversion - robbery by choice )〕 The DCC exchange rate would incorporate the foreign exchange rate charged by the credit card company, in addition to a fee paid to the merchant and that retained by the DCC operator. Furthermore, the credit card company may charge an additional fee for charges made outside the card holder's home country, though the charge appears to have been made in the home currency under DCC. The currency conversion is done by the merchant or his representative card processor at the point of sale instead of by the credit card company when the account is charged. The financial benefit to the merchant or their provider may be an incentive for the merchant to use DCC even when it would be disadvantageous to the customer. The merchant is now obliged to ask the customer if they want to use DCC but sometimes false information is given by the merchant to persuade customers to use DCC, such as that "DCC bypasses foreign transaction fees" or that "their machines automatically convert purchases to the home currency at the point of sale", which are both not true. Most credit card companies and advisers recommend that consumers not use DCC when it is offered to them. Credit card companies claim that they are required by law to permit DCC operators access to their platforms. Many sources report that customers do not understand DCC, are not properly informed of the terms, and are not able to make an informed decision whether to elect to pay in the local currency or in their home currency.〔Forbes, 30 July 2014: (Pay in Local or Home Currency? )〕〔U.S. News & World Report, 15 June 2015: (The Strong Dollar Is Causing Travelers to Make a Big Credit Card Mistake )〕〔atoztalk, March 2015: (Watch Out When Using Your Credit Card Abroad )〕 Proponents of this service suggest that the benefit to travelers is that it allows them to view and therefore understand prices in foreign countries in their home currency and for business travelers making it easier to enter expenses. ==How DCC works== When a customer wants to pay for a transaction using a credit card, the payment terminal will detect whether the card is payable in another currency. If so, the terminal will display to the salesperson a notification that the card is a foreign card and the salesperson will offer the cardholder the option of paying in their own currency. If the cardholder accepts the option, the transaction will be directed through the DCC operator which will determine the exchange rate to the cardholder's currency using their own or a third party source, such as Reuters, to which is added the merchant's margin and the DCC operator's margin. The source of the exchange rate and the margins are not normally disclosed. The benefit to the merchant may be merely the avoidance of the credit card company fees. The credit card company would charge a fee to the DCC operator in place of the fee it would obtain from the merchant. The terminal will display the exchange rate that will be used and the amount in the cardholder's currency. The cardholder may then confirm the transaction by pressing OK on the terminal keypad in the normal manner, and the cardholder would normally need to sign the receipt. Alternatively, if the cardholder rejects the transaction, for example because of the exchange rate offered, they can press Cancel to abort the transaction. The salesperson would need to re-enter the transaction for it to be processed without the DCC option. The DCC operator guarantees that the amount in the cardholder's currency will be debited to the cardholder's account, and that the merchant's account will be credited with the amount in the local currency. The exchange rate risk, though small, is borne by the DCC operator. The DCC transaction may be a part of the DCC operator's wider foreign exchange operation, or it may simultaneously buy one currency from and onsell the other currency to a specialised foreign exchange dealer. (The DCC operator may be based in a third country and use a third base currency.) The cardholder's credit card company may impose an additional foreign transaction fee on the transaction, which appears on the statement. DCC operates similarly with Internet transactions. When credit card information is entered to finalise payment, the system can detect the home country of the cardholder and offer the cardholder the option of paying in their currency. DCC is presently available for cash withdrawals at ATMs. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Dynamic currency conversion」の詳細全文を読む スポンサード リンク
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