Dynamic currency conversion (DCC) is a service intended for the cardholders of cards issued outside of Croatia, enabling them to select the option of card debiting in domestic currency of the cardholder when withdrawing cash at Zagrebačka banka’s ATMs or when making payments at Zagrebačka banka’s EFT POS devices.
The DCC service is optional for cardholders.
If a cardholder chooses to convert a HRK transaction amount into another currency, depending whether they are withdrawing cash on ATM or making payment on EFT POS devices, currency exchange rate that will be used for the conversions of the original transaction amount will be the ATM DCC rate or the DCC EFT POS rate.
When converting, the original transaction amount is multiplied by the corresponding coefficient that covers both the DCC exchange rate list and relevant fees in accordance with Zagrebačka banka’s tarif. If the fee equals zero, the coefficient is equal to the DCC exchange rate list.
The DCC service applies to Maestro, Cirrus, Mastercard and Visa cards issued outside Croatia, and to the currencies that are published on DCC exchange rate list on the day when the transaction was conducted.
The exchange rate list for DCC is different from the exchange rate list valid at the branch offices.
When you use cards issued by Zagrebačka banka in stores or withdraw cash in particular countries, especially in Europe (Poland, the Czech Republic, Austria, etc.), you might have to choose between two types of payments: withdrawal/purchase in the currency of the country where you are located or a conversion to the equivalent amount in HRK.
For clients who use cards for accounts in HRK and who want to know how much they will be charged in the equivalent amount in HRK immediately, choosing the DCC is definitely beneficial. When you enter your PIN or sign a receipt, you consent to a conversion to the equivalent amount in HRK. The amount of margin and/or fee applied for the currency conversion into HRK, as charged by a foreign bank for the DCC service, will be displayed on the screen.
Some foreign banks charge higher fees and margins for the currency conversion service, so it is usually more favourable for users of cards issued by Zagrebačka banka not to select the DCC service when they are abroad, but to effect a transaction in the original currency. Then the foreign currency conversion into HRK will not be performed by a foreign bank according to its exchange rate, but by Zagrebačka banka according to the rules described in the Terms and Conditions of a particular card.