Visa has reportedly agreed to allow dynamic currency conversion (DCC) for its cardholders carrying out international ATM transactions globally.
DCC is a service that offers cardholders with an option for payment in their billing currency when making an international transaction. It is provided by acquirers/ATM operator and their merchants.
Mastercard permits DCC at US ATMs, while previous Visa network rules prohibited such services.
Visa’s latest decision comes after the US National ATM Council (NAC) submitted a public petition in February this year seeking DCC services to international VISA cardholders who use ATMs in the country.
During its petition, NAC provided Visa with data indicating successful DCC for Mastercard transactions at US ATMs. It also highlighted the benefits for Visa cards in markets where the firm allowed the services.
Additionally, the ATM council provided information on significant percentage of cardholders who repeatedly use DCC services wherever they are permitted.
NAC executive director Bruce Renard said: “DCC services provide the transparency and real-time information needed by consumers from abroad to better understand their cash withdrawals from US ATMs in terms of the cardholder’s home currency.”
After considering the petition, Visa agreed to permit DCC services at worldwide ATMs. The revised rules are set to be effective from 13 April next year.