Dynamic Currency Conversion: A Hidden Travel Fee?

When traveling abroad or shopping on international websites, paying with your credit card is one of the most convenient ways to transact.

Upon payment or checkout, you may be given the choice to pay in PHP or NON-PHP currency.

Know more about how this works to avoid unnecessary charges on your foreign purchases.

What is DCC?

Dynamic Currency Conversion (DCC) gives you the option to pay in Philippine pesos (PHP) by converting the amount upfront.

While this may seem convenient, it often comes with extra costs you might not be aware of:

• Higher exchange rates – Conversion is done by the merchant’s payment provider which is usually higher than your bank’s rates
• Hidden markups – Merchant’s payment provider charges additional fees on top of their high exchange rate

As a result, paying in PHP abroad costs you 3-10% more per transaction, depending on the merchant’s rate.

Why NON-PHP Currency Should Be Your Choice

Paying in NON-PHP currency lets your bank handle the conversion. This means:

✅ Better exchange rates

✅ No hidden DCC markups

✅ Savings on every transaction

Travel Tip

DCC is also commonly offered on international websites such as airlines, hotels, and shopping platforms—not just in-store purchases. This can be avoided by choosing the NON-PHP currency in the payment settings before checkout.

When paying abroad or online, always remember to:

❌ Skip “Pay in PHP”

✅ Choose NON-PHP currency