Dynamic Currency Conversion (DCC) is a deceptive practice that can cost you significantly more money when withdrawing cash abroad. Here's what you need to know to avoid being scammed.

What is DCC?

DCC is a service offered by ATM operators, retailers, or financial service providers that allows you to convert your transaction into your home currency. While this may seem convenient, it can actually be a rip-off.

Why DCC is a Sleight of Hand

DCC providers often offer you a favorable exchange rate on the surface. However, this rate is typically much worse than the one you would get if you just paid in the local currency. The difference is hidden in the fees that DCC providers charge.

Here's an example:

• Let's say you need to withdraw 20 British Pounds (GBP) from an ATM. The current exchange rate is 1 GBP = € 1.5679.
• The ATM offers to convert the transaction into Euros (EUR) at a rate of 1 GBP = € 1.45.
• This means that you would be charged €29 instead of €31.36.

How to Avoid DCC

To avoid DCC, always pay in local currency. This is the only way to ensure that you are getting the best possible exchange rate.

Here are some tips for avoiding DCC:

• When using an ATM, make sure to choose the option to pay in the local currency. Many ATMs will automatically offer to convert your transaction into your home currency. If you see this option, choose "No" or "Cancel."
• When paying at a hotel or in a shop, tell the cashier that you want to pay in the local currency. They may try to persuade you to pay in your home currency, but be firm and insist on paying in the local currency.

What to Do If You are Charged DCC

If you are charged DCC, there are a few things you can do:

• Contact your credit card company immediately. They may be able to reverse the charge.
• File a complaint with the Better Business Bureau (BBB). This can help to put pressure on the merchant to change their practices.
• Contact your government. Some countries have laws that prohibit DCC.

The Bottom Line

DCC is a rip-off. It is a way for businesses to make more money by hiding fees in the exchange rate. Always pay in local currency to avoid this scam.

Here's a summary of the key points to remember:

• DCC is a sneaky way to charge you more money for your transactions.
• Always pay in local currency to avoid DCC.
• Be aware of DCC when shopping online.
• Contact your credit card company if you are charged DCC.
• File a complaint with the BBB or your government.

By following these tips, you can protect yourself from the DCC scam and save money on your travels.