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Dynamic Currency Conversion (DCC)

Dynamic Currency Conversion (DCC) makes international commerce more convenient for customers. For example, consider this scenario:
  1. A European cardholder uses a card billed in Euros (EUR) to purchase a box of chocolates priced at 150.00 in Australian dollars (AUD) from an online merchant based in Australia.
  2. At checkout, the merchant offers the cardholder the option to pay in the EUR currency.
  3. The merchant uses DCC to convert the transaction amount from 150.00 AUD to 109.04 EUR.
  4. The merchant presents the converted transaction amount in the EUR currency to the cardholder. The exchange rate of 0.73 (1 AUD = 0.73 EUR) includes a 3% DCC markup over the wholesale exchange rate. The merchant must disclose the 3% markup to the cardholder.
  5. The cardholder chooses DCC and agrees to pay 109.04 EUR for the box of chocolates.
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