If your hospitality business is located in a tourist hotspot, maybe you own/run a hotel, restaurant, bar, or visitor attraction, if you do, you’re likely welcoming a significant number of international customers. While that’s great for business, it could also mean you’re paying more in card processing fees than necessary, if you don’t fully understand something called Dynamic Currency Conversion (DCC).
So what is DCC?
Dynamic Currency Conversion is a payment service that automatically detects a cardholder’s home currency and gives them the option to pay in that currency rather than in GBP. On the surface, this seems like a helpful function, it adds transparency for the customer by displaying the exchange rate, fees, and total cost in their own country’s currency.
But for your business, the picture isn’t always so simple.
The Hidden Costs of DCC for Merchants
While DCC can offer convenience for international customers and even reduce the risk of chargebacks from unrecognised foreign transactions, it often comes with higher processing fees.
Many business owners are unaware that:
- The customer usually pays more through DCC due to poor exchange rates and extra commission.
- The merchant can receive lower returns on transactions, especially when DCC fees are deducted at source.
- DCC rebates (where offered) rarely compensate for the lost revenue and inflated costs.
In short, the cost of offering this “convenience” may be greater than the benefit.
Why This Matters for the Hospitality Sector
In hospitality, volume and frequency matter. With hundreds or even thousands of transactions processed each month, even small DCC-related fees can quickly accumulate into thousands of pounds lost annually.
You may be unknowingly set up with DCC by default through your merchant service provider, and unless you’ve reviewed your account terms or statements closely, these charges can go unnoticed.
How acceptcards® Can Help
At acceptcards®, we specialise in helping hospitality businesses understand their card processing arrangements and uncover hidden costs like DCC. Through a quick, no-obligation review of your merchant account, we can:
- Identify unnecessary charges or non-optimal DCC arrangements
- Benchmark your current rates against the market
- Provide clear, impartial recommendations to reduce your fees
- Support you in renegotiating terms or switching providers if needed
We’ve saved businesses in the hospitality industry thousands of pounds simply by helping them understand how they’re being charged—and where they could be paying less.
Don’t Let DCC Drain Your Margins
If your business regularly serves international customers, it’s worth checking whether DCC is helping or hindering your bottom line. A simple review could mean the difference between paying thousands unnecessarily or reclaiming money you didn’t realise you were losing.
📞 Get in touch with us today for your free merchant account review and take the first step toward smarter, leaner payment processing.
Hospitality Finance, Card Processing, DCC, Merchant Services, Acceptcards, Tourism Business, Dynamic Currency Conversion, Hospitality Savings
