Dynamic Currency Conversion (DCC) is a service that gives your international customers the convenience and choice to pay the bill in their own currency rather than in Euro. You’ll receive a rebate from BOI Payment Acceptance with each DCC transaction, so the more international business you do, the more you grow your revenue.
Your BOIPA Terminal will automatically identify international credit and debit cards during the authorisation stage.
If BOIPA identify an international card, your customer may be offered the choice to pay in their home currency. To assist them in their choice, your customer will be able to view the foreign exchange rate, margin and final price so they can choose whether to pay in the local or home currency.
Regardless of the choice your customer makes, BOIPA will always settle the transaction in your terminal currency, for the full sale amount.
At the end of each month, BOIPA will calculate a rebate payable as a credit to your merchant services statement in respect of DCC transactions processed on your terminal.
Revised EU cross-border payment regulations covering transparency requirements for Dynamic Currency Conversion (DCC) are being implemented across the EU. The new EU legislation states that for any DCC transaction where the payment card is issued in the European Economic Area (EEA) and the merchant is EEA based, there will be a mark-up percentage displayed over a rate published by the European Central Bank. In essence this will provide more transparency to consumers concerning the option to pay in their home currency by choosing DCC at Point of Sale, or have their card issuer convert the transaction (at bank) at a later date.
The purpose of the below FAQ’s are to provide an overview of new EU legislative requirements and how they impact on Dynamic Currency Conversion.
DCC stands for Dynamic Currency Conversion. DCC is a service that gives international cardholders the choice to pay in their home currency.
New EU legislation states that for any DCC transaction where the card is issued in the European Economic Area (EEA) and the merchant is EEA based, there will be a mark-up percentage displayed over the European Central Bank (ECB) exchange rate. This will show cardholders how much, as a percentage, they will pay for the conversion in comparison to the ECB exchange rate.
So whenever a merchant’s and cardholder’s currencies are both from within the EEA and the cardholder’s card is issued in a different home currency to that of the merchant, the cardholder must have the DCC transaction amount and exchange rate option presented to them on the card terminal screen and the percentage over the ECB exchange rate. The transaction receipt will also display this information for the cardholder’s future reference. The software on your BOIPA card terminal will be updated to ensure compliance with these changes.
The regulations came into force on 19th April 2020, however updates will continue to be rolled-out after this date as it is understood that some customers are not trading due to COVID-19 restrictions. We will notify merchants by email once your terminal(s) is due to be updated.
The following are the non-Euro currencies within the EEA:
Once your terminal software has been updated it will automatically identify payment scenarios where the card currency and local currency both belong to the EEA and will adjust the POS screen display and receipt display accordingly.
These changes are being made to comply with ECB regulations. The existing card association scheme rules are unchanged.
For EU currencies only, the total DCC charges for the transactions should be expressed as a percentage mark-up over the latest available ECB rate (the mark-up). There are no changes to non-EU currencies.
If you have a BOIPA card terminal you do not need to take any action. We will automatically update your terminal through an overnight update to comply with the regulations.
No. The change to display the DCC mark-up % over the ECB rate will be displayed for comparison purposes only for EU currencies. There will be no change to how your customers are charged.
If your card terminal is provided by BOIPA, your DCC Rebate with BOIPA will stay the same as before.
This change is regulated by the European Central Bank so it cannot be opted out from and BOIPA must be fully compliant with the EU regulations. This is simply a slight change in process to ensure compliance with EU regulations, your DCC Rebate rate and all DCC-related charges applicable to your customers will not change.