DCC – Specific Transaction Requirements

Chip and PIN Transactions

The information that is required to be provided to the customer so that customer is able to make an informed choice of either accepting or declining DCC. This must be available to the consumer before they enter their PIN (choice before PIN Principle).

Mail Order / Telephone Order

Written procedures or scripts must exist for processing telephone orders that include; an explanation of the DCC service being offered, consumer choice and disclosure of information. If DCC is offered on mail orders, the order form must disclose the source of the Reference Exchange Rate, the Mark-up and any commission that may be applied.

eCommerce Transactions

If payment is made over the internet, all information relating to the DCC service being offered must be displayed to the consumer on the customers website before the authorisation takes place.

The consumer must indicate whether they accept (opt-in to) or decline (opt-out of) the DCC service by either:

  • Checking one of two boxes displayed: one to accept DCC, the other to decline DCC; or
  • Checking a single box displayed to accept DCC.

Note: Having only one check box to decline the DCC service or having two boxes with one pre-populated to accept DCC is not acceptable.

Recurring Transactions

To process DCC on recurring transactions the consumer must agree to accept DCC for subsequent transactions by opting in at the time of the first transaction. Relevant financial information must be provided to the consumer for the first transaction and be available for all subsequent transactions. A process must be available for the consumer to change their mind and choose not to accept DCC for subsequent transactions.

Pre-authorisation & Completions (Check In and Check Out)

A cardholder must be presented with the DCC option at both pre-authorisation and completion stages. Best practise to optimise the DCC take up rate and revenue opportunity is to bring back the DCC decision made at pre-authorisation stage so that the staff member/cardholder is aware of the original DCC decision and this can guide the staff member to talk to the cardholder about the benefits of DCC in order for them to make their final decision at completion stage if they are present.

Express Check Out

Prior to completing DCC transactions in express check out scenarios, where they consumer is not present to complete the transaction, the customer must go through all choice and transparency requirements and must also inform the consumer that the conversion rate to be applied to the Transaction will be determined by the customer at a later date without additional consultation with the consumer.

For Card not present Express Check out Visa transactions to be allowed for DCC, a pre-auth receipt is required and it must have a ticked box to show the cardholder has opted in to DCC. See Sample Pre-Auth Receipt for a sample receipt.

Refunds

Depending on relevant domestic consumer legislation, the consumer may request a refund of all or part of the purchase price. A refund transaction must be processed in the same currency used for the original purchase. If the merchant is unable to determine whether the DCC service was accepted on the original transaction, then DCC should not be selected when performing a refund.

Note: A DCC refund will use the exchange rate from the current day as the DCC will be performed in the online lookup manner.

If the sale and refund are performed on different days, there will be a different exchange rate used between the sale and refund and therefore the customer must be aware that the cardholder could gain or loss out here (the same would happen with a non DCC transaction as the issuer rates would change).

Contactless refunds - If the original DCC authorisation was completed as contactless, then if the reader supports it, we recommend that you do a contactless refund but it is not a mandated.

Gratuity Transaction

DCC is permissible on Gratuities and Tips. If the POI Solution is configured for Gratuity, the receipt for the transaction should contain the following data:

  • Tip Amount in Merchant Pricing Currency
  • Tip Amount in Cardholder Currency
  • Total Transaction Amount including Tip
  • Total Amount in Merchant Pricing Currency in including Tip

DCC on Proximity Payments

The Card Schemes do not permit DCC on low value Proximity Transactions, whereby the transaction amount is less than or equal to the applicable Reader CVM limit. DCC is however permissible on High Value Proximity Payments that are above the CVM limit.

In order to simplify the transaction flow the Card Schemes have agreed that such transactions should take place using a single tap process. This is facilitated by the fact that the transaction cryptogram can be generated in the merchant’s base currency, as opposed to the final transaction currency. It is widely accepted that the cryptogram is only used by the issuers to authenticate the transaction, and not to determine the authorisation amount.

Example Transaction:

A US Consumer Paying for Goods at a Euro, DCC-enabled Terminal

  • The Euro Amount is entered on the terminal (Transaction amount is above the CVM limit)
  • The Cardholder taps their card and the cryptogram is generated based in Euro currency
  • The DCC look-up occurs (either via the Online DCC inquiry message or checking the BIN file on the terminal) and offers the choice to the cardholder to pay in both Euro and US Dollars
  • The Cardholder selects US Dollar Amount
  • The authorisation is sent online with the original Cryptogram generated in the merchant’s base currency
  • The issuer will use the merchant base currency in the authorisation message to decrypt the cryptogram and there should be no impact on the approval / decline response

Note: The implementation of the POI currency conversion must not require a subsequent tap of the card on the terminal.