---
title: "What is Dynamic currency conversion? | Benefit Systems"
description: "Dynamic currency conversion is the offer to settle a payment abroad in your own home currency, with the merchant side choosing the exchange rate."
source: "aus dem gebauten HTML abgeleitet"
---
# What is Dynamic currency conversion?

Dynamic currency conversion is the offer to settle a payment abroad in your own home currency, with the merchant side choosing the exchange rate.

Also called: DCC.

## How it works #

A terminal, cash machine or booking page asks whether to charge in your home currency or the local one. Choosing home currency accepts a conversion provider’s rate instead of the card network’s; the markup sits inside the rate and appears in no fee schedule. The merchant takes a share of it, which is the entire reason the question is asked.

## Not to be confused with #

Dynamic currency conversion is not the same as your own bank’s foreign transaction fee: that fee normally still applies and, with DCC, is calculated on the already inflated amount.

## In German #

The German term is Dynamic Currency Conversion. [German version of this term](/de/glossar/dynamic-currency-conversion)

## Related terms #

- [Foreign transaction fee](/en/glossary/foreign-transaction-fee): A foreign transaction fee is a percentage charge added by the card issuer on purchases that are not in the card’s billing currency.
- [Interbank rate](/en/glossary/interbank-rate): The interbank rate is the exchange rate banks trade at with each other, and it serves as the benchmark against which any markup abroad is measured.
- [Cash advance](/en/glossary/cash-advance): A cash advance is withdrawing cash on a credit card, which counts as borrowing and therefore carries its own fees and interest rules.

## Articles that use this term #

- [Why you should never pay in your home currency abroad](/en/knowledge/dynamic-currency-conversion)
- [What is a foreign transaction fee and when does it apply?](/en/knowledge/foreign-transaction-fee)
- [What’s the cheapest way to get cash abroad?](/en/knowledge/cash-abroad)