How does DCC work?
At checkout, the provider reads the card’s BIN, sees that the card is billed in a different currency, and offers the customer two prices: one in the merchant’s currency and one converted into the card currency at the provider’s rate, including its markup. Visa’s guide describes the choice as being between the merchant’s local pricing currency and the card’s billing currency. If the customer accepts, the payment is submitted in the card currency and the issuer does not convert it. If the customer declines, the issuer converts it later at its own rate and fees.
Why do merchants use it, and what are the trade-offs?
Merchants usually receive a share of the conversion margin, and customers see the exact amount that will appear on their statement. The trade-off is that the customer pays the provider’s markup instead of the issuer’s conversion charge, which can cost them more, and customers who feel pushed into it complain or dispute. As an illustrative example: a store with 1 million euros a month of foreign-card sales where 30% of customers accept DCC at a 4% markup generates 12,000 euros of conversion margin a month, shared between provider and merchant, and paid by those customers.
What rules apply?
Visa’s consumer guidance says providers should not use wording, fonts or colours that push the customer towards conversion. In the EU, the charges must be disclosed as a percentage markup over the European Central Bank’s euro reference rates before the payment is made. A conversion the customer did not clearly choose is a dispute waiting to happen.
Where does Omno use it?
DCC is offered by acquirers and PSPs that support it; Omno does not set exchange rates. Omno records the currency and amount of every transaction across connected providers, and its routing and eligibility rules can use currency as a condition, so payments in a given currency go only to providers set up for it.