Currency Conversion

Currency conversion in financial transactions is the process through which the currency used by the merchant (transaction currency) is converted into the currency of the cardholder's account (issuer currency). This process is essential for facilitating transactions across different countries where the parties involved use different currencies.

Key Aspects of Currency Conversion:

Dynamic Currency Conversion (DCC):

Benefits and Considerations:

In summary, currency conversion facilitates seamless cross-border transactions by aligning the different currencies used by the merchant and the cardholder. While dynamic currency conversion offers benefits in terms of transparency and convenience, it typically comes at a higher cost. Customers should be well-informed and consider whether the benefits of DCC outweigh the extra charges.