Dynamic Currency Conversion (DCC)

Old Aug 3, 2021, 2:46 pm
  #826  
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Originally Posted by Im a new user
I suspect it's difficult to implement DCC if the customer is expected to leave a tip. If you try to fool your customers to pay extra for DCC, expect no or reduced tip.
Yeah, they probably need to do the initial charge in USD first or ask people prior to taking cards to the back, both of which are problematic. Maybe this is one of the upsides to US restaurants being so resistant towards pay at the table?
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Old Aug 3, 2021, 6:38 pm
  #827  
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Originally Posted by tmiw
Yeah, they probably need to do the initial charge in USD first or ask people prior to taking cards to the back, both of which are problematic. Maybe this is one of the upsides to US restaurants being so resistant towards pay at the table?
If you were to venture to I-Drive in Orlando or Times Square with a non-USD card, I'm certain you'd start collecting DCC data points all over the place. It was reported a few years ago in the thread here that even large chains like Red Lobster and Olive Garden had DCC at one point. The reason we don't see it is because we and those around us are predominantly using USD cards, but DCC certainly exists. Many big box electronic and clothing retailers have it, but it's easy enough to decline. Here is my sister-in-law's AUD card at Kate Spade for reference:



This was early 2015 so pre-EMV, but I doubt things have changed. We collected a few data points, but seeing as though her card had exchange fees, we limited the transactions. We currently only have one non-USD card at home, but Mrs. Majuki doesn't like to use it since there's a currency exchange fee and no rewards.
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Old Aug 7, 2021, 8:41 am
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Rinascente Milan Duomo (largest department store in Italy)... US-issued card, contactless... got DCC....
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Old Aug 8, 2021, 11:27 pm
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Speaking of DCC in the US, apparently this is not uncommon. I saw it at Marshalls where the very dull screen all of a sudden went rich with colors show the US flag and the country flag of card issuance (for the two options, pay in USD or via a conversion rate). The unfavorable conversion rate was over 4% extra from the standard exchange rate all listed on one screen (well, the unfavorable rate that is). It was easy to choose local currency (USD), but still sad to see.
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Old Aug 9, 2021, 3:43 am
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Originally Posted by rasheed
Speaking of DCC in the US, apparently this is not uncommon.
Yes, I suspect it is more common than we might know just because almost all of us have USD denominated cards. Also, it's a bit ironic that we need to select USD since normally we're running away from paying in USD when using our cards overseas.
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Old Aug 9, 2021, 4:28 pm
  #831  
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Originally Posted by Majuki
Yes, I suspect it is more common than we might know just because almost all of us have USD denominated cards. Also, it's a bit ironic that we need to select USD since normally we're running away from paying in USD when using our cards overseas.
I'd definitely have investigated this more had Revolut not kicked Americans off its service for a few years (only to allow us back and give us debit cards that behave just like any other card from a US issuer). Though at least those still prefer online PIN when run as credit, which they could easily have not done.
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Old Aug 10, 2021, 4:39 am
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Originally Posted by tmiw
I'd definitely have investigated this more had Revolut not kicked Americans off its service for a few years (only to allow us back and give us debit cards that behave just like any other card from a US issuer). Though at least those still prefer online PIN when run as credit, which they could easily have not done.
Mrs. Majuki has a TWD denominated Visa. However, the card has no rewards and has a currency exchange fee, so we're not that motivated to collect data points just to test for the presence of DCC.
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Old Aug 10, 2021, 10:52 am
  #833  
 
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Originally Posted by Majuki
Yes, I suspect it is more common than we might know just because almost all of us have USD denominated cards. Also, it's a bit ironic that we need to select USD since normally we're running away from paying in USD when using our cards overseas.
It is. I used an Amex ICC USD Platinum in June since it had a 2X promo, and I was still working on the signup bonus spend. Despite it being a USD card, I was prompted for GBP/USD DCC a few times, probably because it's actually issued out of the UK. Also was asked to enter a PIN during a few transactions, which was interesting considering it's the U.S.
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Old Aug 10, 2021, 5:32 pm
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Originally Posted by moe8555
... I used an Amex ICC USD Platinum, ...was prompted for GBP/USD DCC a few times...
Thanks for the DP! According to several posts upthread, AmEx did not allow DCC on its network. Perhaps that view should be clarified or ammended -- we can always use more DPs involving AmEx cards.
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Old Aug 10, 2021, 5:41 pm
  #835  
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I have used my US issued AmEx in Canada from February to June and did not have a single instance of DCC (working on minimum spend for a different card now, Visa, still no DCC since July).
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Old Aug 11, 2021, 8:25 am
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Just came back from Poland, and got DCC at every single establishment, including the Covid test spot at the airport. Fortunately, the choice is clear, and the clerk always clarified which button to push to select PLN.
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Old Aug 11, 2021, 8:32 am
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Originally Posted by greglvnv
Just came back from Poland, and got DCC at every single establishment, including the Covid test spot at the airport. Fortunately, the choice is clear, and the clerk always clarified which button to push to select PLN.
That’s interesting. I was in Krakow this past weekend and got it about 50% of the time. Less than Spain. But I could have just been lucky!
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Old Aug 11, 2021, 8:32 am
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Originally Posted by greglvnv
including the Covid test spot at the airport
If the DCC terminal is made by a Chinese company, you may learn "yes" (Covid-positive result to the customer) is spelt "N-O" (at the terminal)
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Old Aug 12, 2021, 1:31 am
  #839  
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Originally Posted by MaxVO
AmEx did not allow DCC on its network.
This is still an accurate statement.
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Old Aug 12, 2021, 6:43 am
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Originally Posted by Majuki
This is still an accurate statement.
Amex processes their transactions through their own bank as far as I understand so DCC would be redundant though not impossible…

that said Amex already charges a very hefty fee of close to 3% in many international markets (All of Europe) and its conversion process passes through USD which makes it even more convoluted and opaque.
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