Dynamic currency conversion
At a foreign shop or website, the option to be billed in rupees instead of the local currency. The overseas merchant sets the rate and adds a markup, usually costing more.
Dynamic currency conversion is the option, at a foreign shop, terminal or website, to be charged in rupees instead of the local currency. It sounds helpful, but it is usually the costlier choice. With it, the overseas merchant does the conversion and sets the exchange rate, typically adding its own markup on top of what your card already charges. Decline it and pay in the local currency, and your own bank does the conversion instead, usually at a better rate, with only your card’s forex markup to pay. The safe habit abroad is simple: always choose the local currency.
Questions people ask
What is dynamic currency conversion (DCC)?
When a shop, terminal or website abroad offers to charge you in rupees instead of the local currency. The overseas merchant does the conversion and sets the rate, usually adding its own markup, so it tends to cost more than letting your bank convert it.
Should I pay in local currency or rupees abroad?
Usually the local currency. That lets your own bank convert the amount, normally at a better rate, with only your card's forex markup to pay. Choosing rupees adds the merchant's markup on top.
Is dynamic currency conversion a scam?
No, it is a legitimate option, but it is rarely the cheaper one. It is presented as a convenience while quietly costing more, so the safe habit is to decline it and pay in the local currency.
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