The use of DCC can often be encountered by foreign tourists in the Czech Republic and Czech citizens abroad.
The so-called dynamic conversion is the current transfer of the amount charged in the currency in which the client's bank account is maintained. DCC thus offers transaction payments directly in Czech crowns, not in the currency of the country.
"Although it seems that the service is at first glance because the customer knows how much he will pay, the exchange rate is in most cases less favorable than the subsequent conversion made by the client bank," Zurovec said.
The currency conversion stop is determined by the company managing the payment terminal or ATM. In the case of payment or withdrawal from ATMs abroad, it is much better for a customer to settle in the local currency and to deny the use of the DCC terminal.
"If a DCC bidding is displayed on a billing or ATM terminal, it is generally better to deny it and continue without change, ie pay in local currency," a spokesman added.
The ministry has added an illustrative image of the warning message showing the ATM screen. However, it is in Czech, which is extremely unusual for foreign institutions.
For clients, it is usually preferable to continue without shifts, advising the Ministry.
"In which language the DCC service will always be offered depends on the ATM. In the English version, in the case of Chorvast's payment in most cases, the correct choice on the payment terminal would be to choose" Payment in kunas " : & # 39; Continue Without Conversion & # 39; ", said Nikola Rusinova from the Ministry of Finance.
More information next year
Without DCC, the amount will be converted into one to three days at the current bank rate. You will only find out the course on the bank statement or online banking. But this "uncertain" option is usually much more favorable, as some economic analysts have pointed out.
According to the German consumer organization Stiftung Warentest of 2016, the difference in ATM cash withdrawals is 12 percent on average.
The European Union (EU), which adopted the new European Decree in March, responded to this problem. From April 2020, ATMs will have to show the customer not only the conversion rate but also the deviation from the central bank's exchange rate and some other information. The goal is to increase user awareness and increase transaction transparency.
Until the law comes into force, the Ministry calls for greater caution when withdrawing from ATMs. However, using a card abroad does not have to be afraid of resorts.