September 2022 – If
a German tourist withdraws cash from an ATM in Prague, the ATM
screen may display a choice whether the tourist's euro account
should be charged in the currency of their account (i.e., euro), or
in the local currency – Czech koruna. If the tourist chooses
the latter, they opt for the so-called Dynamic Currency Conversion
(DCC) service.
DCC is a service enabling instant currency conversions for
card-based transactions. DCC was introduced in 1996 to allow
cardholders to pay in their home currency when making payments in
foreign currencies. This can be either an ATM withdrawal or a card
payment at a point-of-sale (POS) terminal in a foreign country. By
using the DCC service, the amount of the transaction in the local
currency is instantly converted into the currency in which the
cardholder's account is held.1
