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the recent geopolitical uncertainties, the
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Dynamic Currency Conversion Factsheet
Source: www.nationwide.co.uk
Topic: Currency
Sort Desciption: Dynamic Currency Conversion is, in theory, an optional service' provided by ... option to pay in either the currency of the country they are visiting or ...
Content Inside: Dynamic Currency Conversion Factsheet So what is DCC? Dynamic Currency Conversion is, in theory, an optional service provided by individual retailers or at ATMs. It should be performed with the cardholders consent. It allows the UK cardholder the option to pay in either the currency of the country they are visiting or pounds sterling. If the card holder opts to pay in sterling the payment will be converted from the local currency to sterling by the retailer or bank who will apply their own conversion fee. If a customer chooses local currency, such as Euros, the card provider will handle the conversion. Nearly all card providers charge a currency conversion fee or a foreign usage fee. However, Nationwide is the only high street financial organisation and the only debit card provider thats doesnt charge any fees for card use abroad. Therefore, to safeguard this benefit, Nationwides customers should always opt for the local currency of the country they are visiting. Unlike Nationwides customers, cardholders who bank elsewhere face a more complicated scenario. For certain transactions it may be less expensive for them to pay in sterling, see table 1. They would have to know what their bank charges for foreign usage and currency conversion are. In addition, they would have to find out the VISA rate for that day and compare this to the sterling rate being offered by the retailer. For regulatory and anti-competitive reasons VISA* is unable to prevent the operation of DCC by retailers or ATM providers but has introduced rules to govern it. Prior to the transaction, a shop or restaurant offering the service should verbally inform the cardholder of the payment choice available, but language barriers will often prevent this. This should be followed by a statement on the signature slip illustrating the choice the cardholder has made. Whats the problem? Nationwide is concerned that there is a general lack of awareness about DCC. Nationwide customers need to know how to protect ...
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