What is a dynamic currency conversion?

The dynamic currency conversion is a feature on some credit cards that convert local monetary values ​​into the form used in the country of origin of the card before the user signs the confirmation. This allows the user to make an informed decision on the price of purchase before he committed himself. This is primarily a way to protect travelers from incorrect or excessively inflated prices when traveling. The service is only available on Visa® and MasterCard® credit cards, although other card companies sometimes offer similar services.

For the most part, dynamic currency conversion is a very simple operation. First, the merchant enters the program of the conversion of the dynamic currency, either through a third party or directly with a credit company. Traders are then in direct control of the level of conversions used by their credit systems. Although they can set the rate to almost anything, most users use wholesale conversion or rate specified by Reuters®.

When the ActAznik will use a credit card in an activated system, can use the transfer of dynamic currency. If he decides, the transaction goes normally and purchases will appear in the local currency of the cardholder in the monthly statement. The printed confirmation will usually use the local terminal currency. This process uses the level of conversion set by the card issuer or associated bank, usually wholesale rate.

If the customer decides to use the conversion of the dynamic currency, the confirmation will have a total of a total in the local currency, including all relevant fees, and the total total amount in the local currency of the card holder. This transfer rate comes from the terminal itself and bypasses the card issuer. These incomes will usually have a dynamic exclusion of currency transfer, which prevents the customer from applying for a backward law.

This exclusion of liability phenomena important for trade owners because conversion of dynamic currency may have onCustomer's side of some main disadvantages. Conversion of the dynamic currency is supposed to provide travelers' peace of mind, because they will always know exactly how much they pay. In addition, it simplifies cost reports because all incomes have a local card holder on them. In fact, some traders use this service as a way to overcome their goods.

There are two main points of deterioration in solving the dynamic currency conversion. First, the trader sets his own exchange rate. If the terminal owner decides to charge a completely different rate than the actual rate, he can. Secondly, there are fees associated with the use of a service that are added directly to the cardholder's account. When these two things are joined, it is possible for the customer to eventually pay significantly more with the program than without it.