Dynamic Currency Conversion is a financial service in which credit card holders, when making a payment in a foreign country, have the cost of a transaction converted to their home currency at the point of sale. The DCC exchange rate would incorporate the foreign exchange rate charged by the credit card company, in addition to a fee paid to the merchant and that retained by the DCC operator.
Vieway’s core objective has been to provide “Multi-Currency Processing” solutions that allow acquirers and their merchants with the ability to accept, process, and reconcile credit card transactions performed in multiple currencies, while allowing international cardholders to complete the same purchases in their home currency. After the credit card is swiped through a terminal or point-of-sale device (which has been modified to support the DCC service), the card is identified as being denominated in an eligible DCC currency. The merchant then presents the currency options to the customer (Visa and MasterCard require that cardholders consent to the DCC service), noting the selection through the terminal. If the customer selected to pay in his home currency, the receipt provides complete details of the transaction, including the amount in the local and home currency, together with the exchange rate used for the conversion (as required by Visa and MasterCard). The merchant receives funding directly from the acquirer in its traditional settlement currency.