<prompt> Human: Dynamic Currency Conversion DCC is a service that merchants are increasingly using. This service is in almost every instance a complete and utter scam and should be avoided.The way normal credit card transactions work internationally is that the merchant submits the transaction to the card network in their home currency. So, lets say youre in India - the merchant will submit the transaction in Rupees INR. The network then converts the transaction to your cards billing currency lets say USD. They use a very very competitive rate generally this will be very close to or even better than the rate youd get by going to google and typing 1 INR in USD. Your card issuer then tacks a Foreign Transaction Fee on top of this, for doing nothing, generally of about 3.DCC transactions work similarly, except that the merchants terminal detects your cards billing currency, and submits the transaction to the card network in that currency. For example, they could submit the transaction in US Dollars, even though the merchants account is in Indian Rupees. The big difference here is that the merchant gets to set the exchange rate, and it practically always has a huge markup that is generally split between the scummy service provider of DCC and the merchant. So not only do they pick an unfavorable rate for you, but they also mark that up and make more money there. Then, to add insult to injury, your card is still going to charge you a foreign transaction fee of another 3!4 is a relatively standard exchange rate markup in DCC transactions. So, you pay a higher exchange rate generally by .5-1, 4 DCC markup, and a 3 FTF - for total fees on the transaction on the order of 7-9!!Obviously, this isnt something you want to do. So, how do you avoid DCC? Use a Discover card which also has no FTF or an American Express. Neither of these networks support DCC. Ask the merchant when youre handing them your card local currency, please. Unless the merchant is deliberately being shady, they will bill you in the local currency. IT IS ALWAYS TO YOUR ADVANTAGE TO BE BILLED IN THE LOCAL CURRENCY. The card networks have access to far far far better rates than any pissant merchant ever will. Not DCC-related, but try to get a card with no FTF. 3 adds up quickly. Capital One cards all have no FTF but dont have chips, which can make it hard to use in Europe. Bank of America also has a travel card with a chip, and no FTF, and no annual fee. If you can stomach doing business with them, it might be worth it to have that card in case of travel. If youre going to travel a lot, consider getting and using a rewards credit card. The Barclay Arrival is my favorite, because it has offline PIN fallback so can be used pretty much anywhere if the terminal is configured correctly.Finally, here is an example of just how shady DCC can turn out. The non-DCC receipt is on the left, and the pair of DCC receipts is on the right. Notice theres a huge disclaimer on the DCC receipts indicating that you accepted the DCC. However, if you look at the tiiiny bit of text in the yellow box, the conversion is already done and the transaction is going to post in USD! Youll also notice that the DCCd receipt charged US58.24. Dont see it? Look for the tiny line below the exchange rate that says USD: . Seems obvious thats what youre being charged, right? Surely the GIGANTIC AMT: INR 3344 wouldnt make you think you were being charged in Rupees, would it? For transactions settling on 0729, MasterCards Rate Tool shows the exchange rate as 60.115.. INR to 1 USD, making the amount billed in USD 55.63 This is a 2.61 savings, or about 4.7. You can easily see how much this adds up quickly over time, so never accept DCC. If you get a receipt like the ones on the right, demand the sale be voided NOT refunded, or youll end up paying foreign transaction fees twice! and run in the local currency. Both Visa and MasterCard require that you have a meaningful choice of currency, and being handed a receipt thats already been run through this scam is not a meaningful choice.There is way more info on DCC and how to avoid it and where it is prevalent in this thread on FlyerTalk and I suggest you check it out and get informed on this if youre planning to travel.  <response>: From Flyertalker linked by OP, if you didnt realize that you got DCCed:You can even use terminology from Visas Chargeback Management Guidelines when filing the dispute, giving Reason Code 76: Incorrect Currency or Transaction Code.Reason Code 76 is used when the transaction was processed with an incorrect transaction code, or an incorrect currency code, or one of the following:Merchant did not deposit a transaction receipt in the country where the transaction occurredCardholder was not advised that Dynamic Currency Conversion DCC would occurCardholder was refused the choice of paying in the merchants local currencyMerchant processed a credit refund and did not process a reversal or adjustment within 30 calendar days for a transaction receipt processed in errorANDMasterCards rules also clearly state that the POI Currency Conversion must be decided by both the merchant and customer. When filing a dispute with a MasterCard, list chargeback Reason Code 4846 from the MasterCard Chargeback Guide, which covers POI currency conversion disputes in the following circumstances:The cardholder states that he or she was not given the opportunity to choose the desired currency in which the transactions was completed or did not agree to the currency of the transaction, orPOI currency conversion took place into a currency that is not the cardholders billing currency, orPOI currency conversion took place when the goods or services were priced in the cardholders billing currency, orPOI currency conversion took place when cash was disbursed in the cardholdeers billing currency. 