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What is Dynamic Damping Control (DDC) system?


Question

What is Dynamic Damping Control (DDC) or Cardholder Preferred Currency (CPC) system?

Answer

Dynamic Currency Conversion is a process when the amount that has to be charged on the card of a client at the moment of paying at offline or virtual POS terminal is converted by a merchant or ATM machine to a currency of the card's issuing country. Every merchant has an option whether to activate or not the DDC control. When the DDC of a terminal is activated the customer will see the amount to be paid in its currency and the merchant will receive the money in the currency he has chosen for his merchant account. For example, imagine that a customer has a card issued by an American bank in US $ and wants to buy shoes at an online store in Europe for 100 euros. When the customer completes the check out process of the Virtual POS, introduces his information and confirms the payment, the terminal will automatically charge him in US $, even though the price of the product was in another currency.

The exchange rate that gets usually applied by the Virtual POS when the DDC is activated is very economical since it is based on the exchange rate of the acquiring bank and not on the exchange rate of the credit card issuing bank, that is usually more expensive.

Advantages of using DDC in your Virtual POS are:

  • DDC controls increase sales ratios since the customer gets charged in his own currency.
  • The risks of charge recessions decrease.
  • DDC exchange rate is very competitive.
  • The amount of money paid by the client will be transferred to the merchant in the currency that he chose when integrating his Virtual POS terminal. 


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