Barclays Bank Kenya has become the first local bank to adopt the Dynamic Currency Conversion (DCC) for its cardholding customers.
The move by the bank will allow for the conversion of the purchase price of goods or services from the currency in which the purchase price is displayed to a currency more familiar to the customer. Trading in a currency best understood by the buyer is meant to ease transactions for international customers as the customers will now be able to have a clear status of their transactions and account activities.
DCC will be a merchant –offered currency conversion service to the Barclays Merchants that accept foreign card transactions. Barclays Bank approved merchants will now use DCC, to convert currency at the point of sale. The bank explained that unlike a credit card company, a DCC operator will be mandated to disclose the exchange rate used for conversion at the time of the transaction according to a rate which will be pre-agreed between the bank and the merchant. The adoption of DCC is expected to remove the confusion that is often associated with foreign purchases.
Speaking on the move, Barclays Bank Director of Retail and Business Banking, Zahid Mustafa emphasized the commitment of the bank to value addition and enhancement of customers’ experience. “Introducing DCC evidence our promise to our customers to deliver the best services in the finance sector. The pilot for the new service has proven that DCC will offer relief to our customers from the pressure that comes with trading in foreign currency and the often misunderstandings that arise. We are guaranteeing the best rates in the market while using the DCC”
The DCC is targeted at merchants mainly operating in airport merchants, duty-free shops, hotels, restaurants, gift shops, car rental, and tour and travel operators. The merchants are set to benefit from the increased service offering to their customers, sharing in Barclays’ foreign exchange margin and reduced chargebacks and refunds.
The DCC service compliments the multi-currency prepaid cards that were launched in December last year by the bank. Multi-currency cards allow Barclays customers hold up to nine currencies on the same card at the same time. The card is able to hold US Dollar, British Pound, Euro, South African Rand, Canadian Dollar, Australian Dollar, Indian Rupee, Japanese Yen and the Kenya Shilling.