Dynamic Currency Conversion: Why Local Currency Generally Wins > 자유게시판

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You’re on a trip, a point-of-sale prompts with a choice: **pay in local currency** or **pay in your home currency**. It looks convenient, but that offer is **dynamic currency conversion (DCC)**—a real-time conversion that often costs more.

Under the hood, the merchant’s acquirer detects a foreign card and inserts an exchange rate that includes a margin, then shows a total in your card’s billing currency. When you choose it, the transaction posts in your home currency immediately; if you decline, your issuer handles the conversion later using the network rate, which is generally more competitive.

Why is DCC commonly more expensive? On-terminal conversions include a margin controlled by the merchant’s provider, not your issuer. Paying in **local currency** lets the issuer/network use **wholesale-style rates**, and you may only pay your card’s foreign transaction fee if one applies. Net, DCC trades instant clarity for **higher cost**.

Where you’ll see it: car-rental kiosks. Each may default to your home currency and wait for you to press a key. Certain ATMs display a banner about "conversion today"—that’s DCC in disguise.

Timing & statement behavior: with DCC, the home-currency amount posts with no later adjustment, so rate moves afterward don’t help you. With local-currency choice, posting occurs at the issuer/network rate; you’ll see the final amount and any foreign fee clearly.

Example: a bill is **100** in local currency. The terminal offers your home currency at a padded rate, sometimes plus an explicit "conversion fee." Decline the conversion, pay locally, and your issuer converts later—frequently cheaper across a trip. A few cents per purchase can compound over multiple cities.

How to avoid
rpaying:
- **Choose local currency** whenever prompted ("no c
rsion").
- **Prefer a credit card** over debit for travel; holds and DCC can reduce available funds on
it more.
- **Read the screen and receipt**; if a conversion appears after you declined, ask for a void and re-run
diately.
- **At ATMs**, decline the on-screen conversion; proceed with a local-currency with
al only.
- **Carry a backup card** with **no foreign transaction fee**, or hold small local cash for DCC-onl
rchants.
- **Monitor pending activity** in your banking app; if a converted amount slips through, contact the merchant while pending status is fresh.

Nuances you migh
counter:
- Rarely, a DCC rate matches your issuer’s rate, but that’s uncommon
strategy.
- Some terminals default to home currency; look for a "more options" button or ask st
to switch.
- If you’re charged in home currency despite declining, you can challenge with documentation (screenshot, receipt, written note).

Common quest
, in brief:
- **Is DCC legal?** It’s allowed, but it transfers currency-risk and pricing power to th
rchant side.
- **Can I reverse DCC later?** It depends. If you clearly declined or weren’t given a choice, a quick request to the merchant often resolves it; failing that, con
your issuer.
- **Does DCC apply online?** It can. Some sites identify your card’s region and pre-convert in your home currency—seek out a currency switcher and choose local.

To wrap up: **Pick the local currency** at checkout and **decline DCC**. This simple step protects your budget by avoiding quiet conversion spreads and keeps your trip costs predictable across borders.

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