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Dynamic Currency Conversion and Consumer Protection: Finding the right rules. ECRI Commentary No. 22, 19 March 2018

Bouyon, Sylvain and Krause, Simon (2018) Dynamic Currency Conversion and Consumer Protection: Finding the right rules. ECRI Commentary No. 22, 19 March 2018. [Policy Paper]

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    Abstract

    Several policy options are under discussion for better regulation of the dynamic currency conversion (DCC) payment service, each of which offers specific advantages but also poses distinct challenges. Enhancing transparency, for example, will require creative solutions. The imposition of fixed price caps would call for the design of robust criteria to determine the level of the caps. And the adjustment of the payment card chip would necessitate the adoption of common standards between card providers. From a consumer protection perspective, a ban on DCC makes sense only if all other options have been exhausted and if consumers can find satisfactory alternatives. Overall, despite the challenges it presents, the first option – enhancing transparency – is the most promising. The mandatory disclosure of an indicative spread seems to be the best way for most consumers to truly understand what is at stake and how much they are paying for what.

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    Item Type: Policy Paper
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > consumer protection policy
    EU policies and themes > Policies & related activities > economic and financial affairs > general
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > ECRI Commentaries
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 20 Mar 2018 10:10
    Number of Pages: 6
    Last Modified: 20 Mar 2018 10:10
    URI: http://aei.pitt.edu/id/eprint/93602

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