Dynamic currency conversion vs traditional currency conversion – What you should know ​

You can pay for international spends either in international currency or Indian Rupee (INR). Your choice defines dynamic and traditional currency conversions.

Traditional currency conversion (TCC)

You pay in international currency and the transaction is converted into INR when the credit card bill is generated.

Dynamic currency conversion (DCC)

You pay for the international transaction in INR in real-time, i.e., when the transaction happens.

In both methods, the exchange rate for the transaction date is considered. However, under DCC, the exchange rate will be inflated for the bank’s margin.

Under TCC and DCC, a forex mark-up fee might apply, depending on the card, for international spends. However, in DCC, an additional DCC fee will also apply.

DCC might give you a real-time look at the cost of your transaction in INR but it inflates the overall value, compared to TCC. Thus, its better avoided.

Enjoy low or nil forex fee with IDFC FIRST Credit Cards. Choose TCC and pay in the local currency to avoid added DCC charges and save more.