Reasons Why Your DCC Transaction Are Declined

In payment gateway industry, The term DCC means Dynamic Currency Conversion. Basically its a method or offer provided the acquiring merchant to cardholders to initiate a transaction using the country currency from which the cardholder belongs ultimately settling the transaction by using cardholder national currency like CAD\BAT\GBP etc.

The DCC transactions or service helps the cardholder to find out about the charged amount by the his/her card issuer for an international transaction in local currency. Many merchants or even e-commerce sites are introducing this service like Facebook/Google Play etc. But sometimes your transaction are declined by your card issuer. The reasons are:




Fact-1: DCC affects on the settlement amount because the exchange rate can be differ day to day. For example, you have done a purchase transaction on 1st day of the month when the exchange rate was 1 USD= 1.24 CAD but when the settlement was done 4th day of the month [assume] by the payment acquirer, the exchange rate goes to 1 USD=1.30 or downward. Basically, settlement was done in T+1 day [After the transaction date]. But if it is delayed for some reasons then it can effect on your statement as well as bank reconciliation. That’s why card issuer may block DCC transaction




Fact-2: Card issuer may block such type of transaction from their payment switch using appropriate logic such or may not allow international currency transaction to be settled in local currency. You may need to declare your card issuer about it before executing the transaction. In few countries, international transactions need to be reported to their central bank for different monetary policies purpose. That’s why DCC can be blocked by the card issuer.

That’s why,It is better to contact with your card issuer to do hassle free DCC transaction using your credit card.