DCC allows you to make point-of-sale (POS) purchases in a foreign country using your home country’s currency. At face value, this sounds ideal, but DCC usually results in far higher costs due to markups and hidden fees.

Crucially, DCC is optional and you’re never obliged to accept those rates.

How does DCC impact you?

If you were to make a cash withdrawal at an ATM while abroad, you’ll likely be faced with a question along the lines of:

Pay for this transaction in your home currency

You’ll be bombarded with a breakdown of exchange rates, markups and commission fees.

The bottom line is that the payment will be cheaper if you choose to pay in the local currency.

Why is DCC so expensive?

DCC is expensive as the fees are usually set by the merchant’s service provider and they aren’t always obliged to reveal any additional associated fees at the time of sale.

Merchants can also apply markups on top of the actual transaction cost, which results in exchange rates that are more expensive than the market average.

It’s important to remember on top of all of those costs, you’ll also have to pay the standard transaction fees associated with your card.

How can I avoid paying more than I need to?

Always check the mark-up and exchange rates before deciding which currency to pay in. If Altery’s rates happen to be higher than the DCC offering, then you may want to pay with the home currency. However, DCC is unlikely to be the affordable option.

We suggest paying in the local currency as long as the information provided confirms it to be the most cost-effective option.