In the increasingly globalised business environment, understanding and catering to diverse payment needs has become more critical than ever. One such innovative solution gaining ground is Dynamic Currency Conversion (DCC). This feature, especially for Point of Sale (POS) terminals, has proven essential, particularly in seasons of high overseas footfall, such as the summer.
Understanding Dynamic Currency Conversion
Dynamic Currency Conversion is a financial service wherein the cardholders have the transaction cost converted to their home currency at the point of sale. This service gives international customers a choice to pay in their familiar home currency, allowing them to see exactly what they will be charged.
By choosing DCC, the cardholder can avoid any ambiguity around the final price. This is because they can compare the purchase amount in both currencies and make an informed decision.
DCC provides the cardholder with transparency on foreign exchange rates and prevents them from being unknowingly charged extra fees. It also allows the cardholder to decide if they want to bear the exchange rate risk or if they want to pay the purchase amount in their home currency.
How to leverage DCC this summer
With the influx of international tourists during the summer, businesses can leverage DCC to provide more personalised, transparent services.
Here are some strategies to leverage DCC effectively:
Invest in DCC-enabled POS systems
If your POS terminals are not already equipped with DCC, consider investing in DCC-enabled systems or integrating DCC into your current system.
Train staff
Ensure your staff are able to explain the benefits of DCC to customers clearly, such as immediate currency conversion and transparent pricing.
Promote DCC
Clearly advertise the availability of DCC at your business, both online and in-store. Make sure to communicate that customers have the option to pay in their home currency, providing them with an enhanced shopping experience.
Transparent pricing
Display prices in both your local currency and popular foreign currencies. This gives international customers an immediate understanding of how much they will pay in their home currency.
Partner with payment processors
Collaborate with reputable payment processors that support DCC. These partnerships can ensure seamless transactions and provide the necessary support should any issues arise.
Provide DCC on all channels
If your business operates across multiple platforms (in-store, online, mobile), make sure to offer DCC across all these channels. This ensures consistency and improves the overall customer experience.
Ensure compliance
Comply with all regulations related to DCC transactions, including clear customer choice and transparent communication of conversion rates. Compliance not only avoids potential legal issues but also helps build customer trust.
Key Benefits of Dynamic Currency Conversion
Increased revenue and profits
DCC offers an additional revenue stream. Businesses get a commission for every DCC transaction, enhancing their profit margins.
Competitive differentiation
By offering DCC, businesses differentiate themselves from competitors not providing this service, thus attracting more international customers.
Faster transactions
DCC allows customers to see the exact amount they'll be billed in their home currency, providing clarity and eliminating any post-transaction surprises due to currency conversion rates
Customer trust and loyalty
By providing a personalised and transparent service, businesses increase customer trust, fostering loyalty and promoting repeat business.
Considerations when using DCC on your POS
While DCC offers several benefits, there are certain considerations to keep in mind:
- The exchange rates for DCC transactions may be higher for customers compared to their home bank rates.
- There might be operational costs involved for businesses to implement and maintain DCC services.
- There might be customer concerns about possible higher exchange rates with DCC.
Getting started with DCC
To get started with dynamic currency conversion, businesses should partner with a payment solutions provider with robust DCC capabilities.
For instance, Trust Payments offers comprehensive support to integrate DCC into your existing POS terminal or help acquire a new one with built-in DCC functionality.
In an era where customer experience is key to business success, DCC can serve as a critical tool, particularly for businesses that see substantial overseas customers, such as in the summer.
Trust Payments DCC service comes with an exchange rate guarantee offering your customers full transparency at the point of purchase. It also provides a competitive exchange rate provided by Reuters.
As with any business decision, understanding your specific needs, potential costs, and the right partners can ensure you leverage DCC to its full potential.
Let us help maximise your earning capabilities from international Point of Sale transactions and improve your customer journey today!
