Paying Abroad: DCC Explained and What It Costs > 자유게시판

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At a shop abroad, a point-of-sale prompts with a choice: **pay in merchant’s currency** or **pay in your home currency**. At first glance it feels easier, but that offer is **dynamic currency conversion (DCC)**—a real-time conversion that often leads to a higher total.

Behind the scenes, the merchant’s acquirer recognizes a foreign card and inserts an exchange rate with a margin, then displays a total in your home currency. When you choose it, the transaction settles in your home currency on the spot; if you choose local currency, your bank handles the conversion later using the issuer rate, which is generally more competitive.

Why is DCC commonly more expensive? DCC rates include extra basis points controlled by the merchant’s provider, not your issuer. Paying in **local currency** allows the issuer/network use **wholesale-style rates**, and you might only pay your card’s foreign transaction fee if one applies. In short, DCC swaps simplicity now for **higher cost**.

Where you’ll see it: hotel front desks. Each may default to your home currency and wait for you to press a key. Certain ATMs warn about "conversion today"—that’s DCC in disguise.

How it appears on your account: with DCC, the home-currency amount posts with no later adjustment, so rate moves afterward don’t help you. With local-currency choice, settlement occurs at the issuer/network rate; you’ll see the final amount and any foreign fee separately.

A quick illustration: a bill is **100** in local currency. The terminal presents your home currency at a cushioned rate, often plus an explicit "conversion fee." Reject the conversion, pay locally, and your issuer converts later—usually cheaper across a trip. Seemingly small gaps per purchase can compound over multiple cities.

Practical ways to
ge DCC:
- **Choose local currency** whenever prompted ("no co
sion").
- **Prefer a credit card** over debit for travel; DCC plus authorization holds can squeeze available funds on
t more.
- **Read the screen and receipt**; if a conversion appears after you declined, request correction i
iately.
- **At ATMs**, decline the on-screen conversion; proceed with a local-currency withd
l only.
- **Carry a backup card** with **no foreign transaction fee**, or keep small local cash for DCC-only
chants.
- **Monitor pending activity** in your banking app; if a converted amount slips through, contact the merchant while authorization is fresh.

Edge cases
aveats:
- Occasionally, a DCC rate comes close to your issuer’s rate, but that’s uncommon a
strategy.
- Some terminals default to home currency; look for a "other currency" button or ask sta
o switch.
- If you’re charged in home currency despite declining, you can challenge with documentation (screenshot, receipt, written note).

Traveler F
in brief:
- **Is DCC legal?** It’s allowed, but it transfers currency-risk and extra margin to the
chant side.
- **Can I reverse DCC later?** Sometimes. If you clearly declined or weren’t given a choice, a quick request to the merchant may resolves it; failing that, cont
your issuer.
- **Does DCC apply online?** It can. Some sites identify your card’s region and pre-convert in your home currency—look for a currency switcher and choose local.

To wrap up: **Pick the local currency** at checkout and **decline DCC**. This simple step preserves your budget by avoiding quiet conversion spreads and keeps your trip costs predictable across borders.

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