Dynamic Currency Conversion Terms of Service
- This document sets out the terms and conditions of the DCC Service (defined below) and adds the DCC Service to your merchant processing agreement (this document is referred to as the DCC Terms of Service). The terms of your merchant processing agreement and the terms of these DCC Terms of Service both apply to your use of the DCC Service, but if anything in these DCC Terms of Service directly conflicts with your merchant processing agreement, these DCC Terms of Service will control. Capitalized terms used in these DCC Terms of Service not otherwise defined will have the meaning ascribed to them in your merchant processing agreement.
- While we provide the DCC Service, we do not provide Foreign Exchange Services, which are provided solely by the Card Organizations. You are solely responsible, except as otherwise provided in the merchant processing agreement, for all aspects of a Card transaction that uses the DCC Service. You must comply with all applicable Card Organization Rules and applicable laws. You will only use the DCC Transaction Rate solely in connection with your receipt of the DCC Service.
- The DCC Service may be used to undertake DCC Transactions on a point of sale device as a part of a card present transaction or as a card not present transaction.
- Settlement of DCC Transactions will be made in the Local Currency based on the Transaction Price.
- Settlement funds will be converted by the appropriate Card Organization, and not by us.
- We will provide the following information:
You must clearly and conspicuously disclose relevant portions of such information to the Cardholder in accordance with all Card Organization Rules and applicable laws when required to do so. The Foreign Currency Equivalent will then be the amount we use to authorize the Card transaction with the applicable Card Organization. You are solely responsible for obtaining the Cardholder’s consent to a Card transaction that entails a Transaction Currency Conversion, including obtaining the Cardholder’s agreement for any DCC Transaction. You are solely responsible for clearly and conspicuously disclosing all terms of any DCC Transaction to the Cardholder (including on the transaction receipt or credit voucher).
- the Foreign Currency Equivalent amount of the Card transaction,
- the DCC Transaction Rate applied,
- the Contracted Margin used in calculating the DCC Transaction Rate, and
- any other information required by applicable laws.
- The DCC Service is available only for Card transactions that entail the use of a Visa or Mastercard branded Card.
- The DCC Service supports only certain Foreign Currencies and certain types of Foreign Currency Transactions. We have the right to change which Foreign Currencies and which Foreign Currency Transactions the DCC Service will support. We will use commercially reasonable efforts to give you reasonable advance notice if we cease supporting any existing Foreign Currency or Foreign Currency Transaction. If, however, there is a sudden and extreme fluctuation in the value of a Foreign Currency, we have the right to stop supporting the Foreign Currency immediately with notice to you. A “sudden and extreme fluctuation” in a Foreign Currency’s value means a movement (up or down) of at least 6% over a two-day period.
- You shall retain the electronic Rate ID when possible, for each Card transaction that entails a Transaction Currency Conversion which is authorized in a currency other than the Local Currency.
- Settlement of Chargebacks of DCC Transactions will occur in the Local Currency, using the DCC Transaction Rate that was applied on the date of the original Transaction Currency Conversion, not the DCC Transaction Rate in effect on the date of the Chargeback. Any Margin Amount credited to you on the original Card transaction will be deducted from the Foreign Currency Fee credited to you.
- The following apply with respect to refunds:
- Refunds (but not Chargebacks) in respect of a Card transaction that entailed a Transaction Currency Conversion will each be treated as a separate Card transaction from the original Card transaction that entailed a Transaction Currency Conversion.
- If you seek to process a refund in respect of a Card transaction that entailed a Transaction Currency Conversion, you shall provide us with the Rate ID associated with the original Card transaction.
- If you provide the Rate ID, we shall determine the Foreign Currency Equivalent based on the Transaction Price of the refund using the DCC Transaction Rate from the date of the original Card transaction. We shall then process the submitted refund with the Card Organization as a Foreign Currency Transaction. Any Margin Amount credited to you on the original Card transaction will be deducted from the Foreign Currency Fee credited to you (described below).
- If you fail to provide the Rate ID, we shall determine the Foreign Currency Equivalent based on the Transaction Price of the refund using the then-prevailing DCC Transaction Rate as at the time and date that we submit the Refund as a Foreign Currency Transaction to the Card Organizations. We shall then process the submitted Refund with the Card Organization as a Foreign Currency Transaction. The calculated Margin Amount on the Refund will be deducted from the Foreign Currency Fee credited to you. Any foreign exchange risk that may arise from a change in the DCC Transaction Rate used in connection with a refund in respect of a Card transaction that entailed a Transaction Currency Conversion where you fail to provide the Rate ID from the DCC Transaction Rate used in respect of the original Card transaction will be allocated to the Cardholder and will be the Cardholder’s responsibility. You are solely responsible for disclosing any such risk to a Cardholder in accordance with the Card Organization Rules and any Applicable Laws.
- You acknowledge and agree that we have the right to add, delete or substitute the source of the Wholesale Rate so long as any substituted Wholesale Rate is a recognized market wholesale exchange rate.
- The following apply to fees in relation to the DCC Service:
- The fees that apply to Card transactions generally also apply to the Card transactions that use the DCC Service. You will pay us the same fees and charges for processing these Card transactions that you pay us for processing other Card transactions, including all Assessment fees.
- Your payment of fees in connection with Card transactions that use the DCC Service will occur at the same time and in the same manner as the fees for your other Card transactions.
- Where applicable, the Contracted Margin amount will be deducted from Settlement to you and retained by us. Each month, we will credit you a Foreign Currency Fee in an amount equal to the Applicable Percentage multiplied by the Local Currency Turnover.
- In addition to your other obligations to indemnify us contained in your merchant processing agreement, you agree to indemnify and hold us, our Affiliates, agents, and third-party service providers harmless from and against all losses, liabilities, damages, and expenses arising from your failure to provide, or delay in providing, a Rate ID in respect of a refund.
- In these DCC Terms of Service, the following definitions apply:
Applicable Percentage: the percentage used to calculate the Foreign Currency Fees, which is currently 0.50% and which we may change upon notice to you.
Contracted Margin: the margin (expressed as a percentage) that we add to a Wholesale Rate to create the DCC Transaction Rate, which is currently 3.5.%, and which we may change upon notice to you.
DCC Service: the service performed to authorize, process, and settle a DCC Transaction.
DCC Transaction: a Foreign Currency Transaction in which the Cardholder authorizes (i) the Transaction Price to be converted to the Foreign Currency Equivalent, and (ii) the Cardholder’s account to be charged in the amount of the Foreign Currency Equivalent.
DCC Transaction Rate: the Wholesale Rate plus the agreed Contracted Margin that we provide to you periodically, which is used to convert the Transaction Price into the Local Currency Equivalent.
Foreign Card: a Card that is denominated in a Foreign Currency.
Foreign Currency Equivalent: the Foreign Currency equivalent of the Transaction Price, which we calculate using the DCC Transaction Rate.
Foreign Currency Fees: the fees we pay you in connection with a Transaction Currency Conversion transaction that we process.
Foreign Currency Transaction: a Card transaction between you and a Cardholder who uses a Foreign Card as a payment method with you to complete the Card transaction.
Foreign Exchange Services: the exchange of one fiat currency into another fiat currency.
Local Currency: the default fiat currency assigned to your merchant identification number with the applicable Card Organization.
Local Currency Equivalent: the equivalent in Local Currency of the amount of a Foreign Currency Transaction that is processed as Transaction Currency Conversion.
Local Currency Transaction: a Card transaction between you and a Cardholder in the Local Currency that is submitted to us for processing in the Local Currency.
Local Currency Turnover: the total Local Currency Equivalent of all DCC Transactions you process in each calendar month.
Margin Amount: the amount equal to the Contracted Margin multiplied by the Local Currency amount of the applicable Local Currency Transaction.
Rate ID: the unique identifier accompanying a Card transaction that entails a Transaction Currency Conversion that identifies the DCC Transaction Rate associated with that Card transaction.
Transaction Currency Conversion: the process in respect of a Card transaction entailing the use of the DCC Service that converts one currency into another by applying the DCC Transaction Rate.
Transaction Price: the original price (in Local Currency) of the good or service that is subject of the Card transaction between you and a Cardholder, prior to Transaction Currency Conversion.
Wholesale Rate:the market wholesale exchange rate published by the Card Organizations which is then used by the DCC Service to derive the DCC Transaction Rate.