VISA has announced a change in its policy that will allow ATM deployers the option to perform Dynamic Currency Conversion (DCC) on international ATM transactions in the U.S. The new rules reverse a long-held policy that prohibited the use of DCC at ATMs in the U.S.
The DCC service allows cardholders — when traveling abroad — to choose if the transaction should be conducted in the local currency or their home currency. If a cardholder accepts a DCC transaction at the ATM, the operator may assess a conversion-related commission to convert the transaction amount in the cardholder’s more easily understood home currency while dispensing local currency.
According to VISA, the changes will be made to the DCC program rules to ensure a consistently positive cardholder experience at ATMs, including adequate disclosures and choice. Those related rules governing DCC, VISA indicated, will be made available soon. The long-sought rule changes are viewed as a victory for the National ATM Council (NAC), which has continued to voice its support for the rule changes and earlier this year circulated a petition favoring new DCC policies.
“This is very exciting news,” said NAC chair, George Sarantopoulos. “I know some operators who don’t have a lot of international cards aren’t going to be as excited as ATM operators in New York, L.A. or Miami, but there are definitely going to be many operators excited about the additional revenue. Even if you don’t have a lot of international travelers, you’ll still be able to increase revenue with VISA and DCC now.”
Sarantopoulos noted that while NAC’s efforts, including the petition, may not have been solely responsible for VISA’s policy change, he’s confident the organization’s continued lobbying played a role.