Dynamic currency conversion (DCC)
動態貨幣轉換
Dynamic currency conversion (DCC) is when a merchant or terminal abroad asks whether you want the charge in Hong Kong dollars or in the local currency. If you choose Hong Kong dollars, the merchant's payment provider does the conversion, and it sets the rate and any extra cost, which often differs from your card issuer's rate. If you choose the local currency, your issuer converts at its own rate and charges the foreign transaction fee its terms set. The two cost different amounts, so you can compare them before you sign.
Example
Suppose you buy an item priced at EUR 100 in Europe. The rates and fee below are assumptions.
- Item price
- EUR 100
- Choose HKD (DCC)
- Terminal shows HK$890
- Choose EUR: card rate
- HK$850
- Choose EUR: foreign transaction fee 2%
- HK$17
- Choose EUR: amount charged
- HK$867
The two options differ by HK$23; the real rate and fee are on the terminal and the statement.
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