How to Use the DCC Loss Calculator
When you pay with a card abroad, a terminal or online checkout sometimes asks, "Would you like to be charged in US dollars instead?" That's Dynamic Currency Conversion (DCC). It sounds convenient because you see the dollar amount immediately, but the exchange rate is set by the merchant or their payment processor rather than your card network — and it almost always includes a hidden markup. This calculator compares your local-currency price against the DCC-quoted dollar charge to show exactly how much that markup cost you.
If you pay in local currency instead, your card network applies its own market-based exchange rate plus your card's standard foreign transaction fee (often 0-3%). DCC markups, by contrast, commonly run 3-8% above that real rate, and since you don't see the exact percentage upfront, the only way to know the true cost is to compare the DCC charge against what the same purchase would have cost with your card's own conversion.
The simplest way to avoid this loss altogether is to always decline DCC before it happens. At any terminal, ATM, or online payment screen that asks you to choose a currency, pick the local currency. If you already have a receipt showing a DCC charge, use this calculator to see the loss and decide whether it's worth disputing with your card issuer.
Frequently Asked Questions
DCC lets the merchant or their payment processor set their own exchange rate, which typically bakes in a markup of 3-8% above your card network's real rate. You see the charge in dollars right away, but you usually pay more than if you'd let your card convert the local currency itself.
Whenever a terminal, ATM, or online checkout asks you to choose between your home currency and the local currency, always pick the local currency. Choosing your home currency triggers DCC, which applies an unfavorable rate plus its own markup.