European commission investigation into Dynamic Currency Conversion
The European commission has been investigating dual charging and excessive charging at both point of sale (POS) and ATMs due to excessive and disproportionate charges being applied.
Within the POS arena, dynamic currency conversion (DCC) seems to average between 2% and 3.5% however we see some charges at ATMs being up to 17% which is excessive and giving customers a feeling of distrust for ATMs.
The European commission has investigated this and has come back with a few very clear conclusions:
-Transparency is needed and this has been given a deadline of 3 years from July 2018
-A cap on DCC fees may be needed
Based on the findings the European Commission has decided to focus on transparency and not to apply a cap of fees at the moment. EC notes reference ‘Remove the proposed interim price cap on currency conversion charges that would apply until the transparency requirements take effect’ in 3 years time.
The industry still has a responsibility to manage transparency and ensure the user has clear information to make an informed decision.
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