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Dynamic Currency Conversion (DCC)
Dynamic Currency Conversion (DCC) is a service provided to cardholders when they shop with international merchants. It allows cardholders the option to process a transaction in the issuing bank’s currency (the currency the cardholder is accustom to) instead of the merchant’s local currency.
How can DCC cause chargebacks?
All transactions must be processed in the merchant’s currency unless the cardholder specifically chooses to use Dynamic Currency Conversion. Because DCC usually applies additional fees to the cardholder’s account, merchants will likely receive “incorrect currency” chargebacks if they mandate use of DCC.