Dynamic Currency Conversion is a financial service that enables a cardholder to have a transaction amount converted into their local currency when making a payment in a foreign currency.
A cardholder from the United States travelling in Europe presents a card for payment for a product priced in Euros. Card data is captured on a terminal and processing software identifies that the card is issued in the USA. The US dollar amount is calculated using the current exchange rate. The amount is displayed in both currencies. The cardholder decides whether to use the conversion service and, if it is wanted, signs a receipt to indicate acceptance. The receipt shows the Euro amount and the US dollar amount. The US dollar amount is debited from the cardholder’s account and the Euro amount is credited to the merchant’s account.
Updated almost 4 years ago