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Dynamic Currency Conversion at ATMs Launched in Croatia

The new service provides card holders with the ability to view the cash-out value in their home currency, allowing them to know the exact amount that is going to be deducted from their bank accounts.

Dynamic Currency Conversion is defined as the conversion of the purchase price of goods or services from one currency to another, as agreed by the cardholder and merchant. The conversion is performed from the merchant’s pricing currency at the point of sale (POS) or ATM, to the cardholder’s billing currency before the acquirer presents the transaction for authorization. The agreed currency becomes the transaction currency, regardless of the merchant’s pricing currency.

Benefits for customers

  • Dynamic Currency Conversion provides the cardholder with an opportunity to pay for goods and services internationally with their local currency.
  • The foreign exchange margin normally applied to such transactions by the credit card company and the foreign issuing banks will in the majority of cases no longer apply.
  • This new functionality improves the customers’ experience by adding convenience, clarity and transparency.

Benefits for financial institutions

  • Dynamic Currency Conversion enables the bank to fully exploit its ATM/POS network’s potential and to benefit from the additional commission, generating extra revenue.
  • Dynamic Currency Conversion leaves a good impression of the bank on the customer
  • Dynamic Currency Conversion shifts the value of the pricing and conversion fees from the card association and issuer to the acquirer.

Dynamic Currency Conversion is sometimes referred to as Cardholder Preferred Currency. It was created and commercialized in 1996 by a number of different companies, including Monex Financial Services and FEXCO.

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