What is credit card DCC?
The full name of DCC is Dynamic Currency Conversion. It is different from the currency conversion fee. Currency conversion is jointly charged by the credit card organization and the issuing bank of the credit card, while DCC is charged by an independent company. Generally speaking, the exchange rate of DCC is 5.45 higher than the exchange rate of card organization.
Because the transaction process of DCC is only recognized by Visa and Mastercard, other credit card organizations have not signed agreements with the DCC organization. Therefore, you may encounter DCC only when using Visa and Mastercard dual-currency cards or dual-currency cards. Pay special attention to dual-currency cards here. Yangyangzhu has emphasized many times that you should not use dual-currency cards overseas. You have to tell the merchant every time that you want to use UnionPay. If the merchant accidentally leaves V/M and returns DCC, you have to explain. long time.
Although it is so dangerous to use the V/M network, there are many V/M activities, the points are often multiplied, the exchange rate is often better than UnionPay, and swiping the V/M network is helpful for card maintenance, and more What's more, some merchants' POS machines only support V/M. You know you are likely to encounter DCC, but you still have to bite the bullet.
What is DCC? Will ICBC credit card be DCC?
DCC (DynamicCurrency
Conversion), also known as dynamic currency conversion. It refers to a payment method that instantly converts the consumption amount into the local currency of your credit card when using a credit card for transactions (consumption, pre-authorization confirmation, etc.). Since the merchant may charge additional fees for this service, this is only possible if both you and the merchant agree, and the merchant must inform you of the applicable exchange rate.
(Answer time: November 14, 2019. In case of business changes, please refer to the actual situation.)
What is DCC? How to avoid being cheated by DCC when using cards abroad?
DCC, the full name is DynamicCurrencyConversion, which is to convert the local currency into your accounting currency in real time. In theory, it converts the currency as soon as the card is swiped. It sounds like a good function, but the exchange rate of DCC is usually Not very cost-effective, so it's a feature that should be avoided. Let’s talk about the situation in our country. China’s dual-currency credit cards are quite special.
1 Only China’s dual-currency credit cards are printed with two credit card organizations, such as VISA and UnionPay.
2 China UnionPay does not accept RMB transactions settled through credit card organizations such as visa/mastercard. I admit it. For example, we use a dual-currency card in RMB and US dollars to spend euros. According to the current situation, the DCC converts the euros into renminbi and then converts them into US dollars for recording. When you repay the loan, you have to repay it in RMB, which results in three exchanges and a huge loss.
For example: Teacher Hua uses a RMB/USD dual-currency card to pay 100 euros for dining. The bank will first convert it to 900 yuan for you at an exchange rate of 1:9. And since we are using the Master channel, we cannot settle in RMB and can only settle in EUR/USD. Then use the exchange rate of 1:8 to convert it into euros, and the price on the bill becomes 900/8=EUR112.5, a loss!
Then why not go through the UnionPay channel?
1 Since UnionPay POS machines are not popular enough,
2visa/mastercard use various methods to block UnionPay,
3UnionPay’s exchange rate is not very cost-effective (in (Except Hong Kong, Macao and Southeast Asian countries),
The most ideal way is to use a U.S. dollar dual-currency card issued by a major bank in the U.S. dollar area, and use a euro dual-currency card issued by a major bank in the Euro area. In Hong Kong, Macao and Southeast Asia, you can use UnionPay cards, and the exchange rate is pretty good. The reason why big banks are specifically mentioned is that small banks may charge handling fees for related items when using U.S. dollar cards, such as Minsheng and Huaxia. This type of card is called a pseudo dual-currency card in major credit card forums.
Basic knowledge of credit cards: What is DCC
DCC is the abbreviation of Dynamic Currency Conversion, which appears in overseas credit card transactions. DCC transaction is to convert the local currency (Local Currency) into the cardholder's accounting currency in real time to reduce the cardholder's exchange risk between the transaction date and the repayment date.
pos machine dcc What does transaction mean?
A credit card transaction is being carried out overseas.
POS (Pointofsales) means "point of sale" in Chinese, and its full name is point of sale information management system. It is a terminal reader equipped with barcode or OCR code technology and has a cash or barter limit cashier function. . Its main task is to provide data services and management functions for commodity and media transactions, and to conduct non-cash settlement.
POS is a multi-functional terminal that can be installed in credit card merchants and acceptance outlets and connected to a computer network to realize automatic transfer of electronic funds. It supports consumption, pre-authorization, and balance. Functions such as inquiry and transfer are safe, fast and reliable to use.
Basic business information is difficult to obtain in bulk transactions. The introduction of POS systems is mainly to solve the blind spots of information management in the retail industry. An important part of the chain store management information system.
What is DCC? How to avoid the DCC trap when using credit cards overseas
DCC refers to "dynamic currency conversion". That is to say, during the process of swiping a card overseas, the acquiring bank converts the local currency into the currency selected by the cardholder in real time (usually the cardholder's accounting currency or national currency). The original intention is to reduce the cardholder's time between the transaction date and the repayment date. exchange risk. However, when converting currencies, a currency conversion fee of about 3% is usually added to the real-time exchange rate, so it is much higher than the normal exchange rate.
If you use a dual-currency credit card for overseas consumption, it is best to use Master to swipe the local currency. You may lose 0-1.5 when using UnionPay, and more than 3 when using DCC. Therefore, if you want to avoid DCC when swiping the card, one The first is to stick to the currency of the country where the card is swiped, and the second is to choose a UnionPay card or an American Express card.
That’s it for the introduction of dcc credit card.