Foreign guests paying by card at the property: currency conversion at the card terminal (DCC) and what the law says in 2026

Updated: 10 November 2026

A British, Swiss or American guest pays at reception and the terminal asks: «Pay in EUR or GBP?». That is dynamic currency conversion (DCC). We read the EU regulation and the official pages of the European Commission, the European Banking Authority, the ECB and the Banco de España (links at the end). We only give what they say; where we could not confirm something, we say so. This is not legal advice: your contract with the terminal provider and your adviser are what count.

Summary

Since 19 April 2020, whoever offers conversion at the point of sale must disclose, before payment, the cost as a percentage mark-up over the latest ECB reference rate (Regulation 2019/518, which added Article 3a to Regulation 924/2009).
Today that rule is in Article 4 of Regulation (EU) 2021/1230, which codified and repealed Regulation 924/2009.
Before payment the guest must see the amount in the property's currency and the amount to be debited, and be told they can pay in the property's currency.
The European Commission puts it simply: the customer always has the right to say no and pay in the local currency.

What DCC is

With dynamic currency conversion the charge is converted at the terminal into the currency of the guest's card, at the rate and mark-up of whoever provides that service. If the guest pays in euros, their own bank converts it later, on its own terms.

What the EU regulation says

Article 4 of Regulation (EU) 2021/1230 (formerly Article 3a of Regulation 924/2009, added by 2019/518):

Paragraph 1: total currency conversion charges are expressed as a percentage mark-up over the latest available euro foreign exchange reference rates issued by the ECB, disclosed before the payment is initiated.
Paragraph 3: whoever provides conversion at the ATM or point of sale discloses, before payment, the amount the payee receives in its currency and the amount to be debited from the payer.
Paragraph 4: this is clearly displayed at the point of sale; the payer is also told they can pay in the payee's currency and have their own bank convert it later; and it is provided on a durable medium (such as the receipt).
Paragraphs 5 and 6 (from 19 April 2021): the guest's bank sends them an electronic message with this information; they can opt out.
Paragraph 7: the information must be free of charge, neutral and comprehensible.
Scope (Article 1(2)): national and cross-border payments in euros or another EU Member State currency that involve currency conversion.

Can the property impose the conversion?

Not according to the sources we read. Recital 9 of Regulation 2019/518 says the payer may refuse that service and pay in the payee's currency, and Article 4(4) requires them to be told about that option. The European Commission adds that the customer «always» has the right to say no and pay in the local currency. We did not find an article using the word «impose»: the protection lies in that duty to inform and the right to refuse.

What about guests from outside the EU?

We could not confirm this. The regulation covers payment service providers and those offering conversion in the EU, and Article 1(2) refers to payments in euros or EU currencies involving conversion. No official source we read states expressly whether a guest with a card issued outside the EU gets all these safeguards. The electronic message in paragraph 5 is sent by the guest's bank, which may not be subject to EU law. The prudent approach is to give everyone the same information.

What official sources advise travellers

European Commission (Your Europe): paying in the local currency is often cheaper; paying in your home currency gives immediate certainty about the amount, but the extra fees often make it more expensive. You can always say no.
Banco de España (Bank Customer Portal blog, 10-8-2023): outside the euro area your bank may charge a currency exchange fee; check your card's conditions before travelling.
ECB: its reference rates are published around 16:00 CET on working days and are «for information purposes only»; they help compare the mark-up, they are not the rate your bank applies.
Banco de Portugal and Banca d'Italia: we found no official page on DCC, so we do not quote their advice.

What to do as a hotelier

Check your terminal contract: whether DCC is switched on, who provides it and on what terms. If you are offered a share of the mark-up, get it in writing. No official source we read says how much the merchant receives, so we do not assume it.
Train staff to ask guests which currency they want to pay in, without choosing for them or recommending conversion.
Check that the terminal shows the mark-up over the ECB rate and both amounts before payment, and that the receipt includes them.
Show your prices in euros on your website, booking confirmation and terms, and say guests can pay in euros.
Do not add surcharges for consumer card payments: Article 62(4) of Directive (EU) 2015/2366 prohibits it. We explain it in our payments guide: /cash-payment-limits-card-acceptance-hotels-2026.
If a guest complains, keep the receipt and what the terminal displayed, and talk to your acquiring bank.

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Frequently asked questions

Is it legal for the terminal to offer charging in the guest's currency?

Yes, if the mark-up over the ECB rate, both amounts and the option to pay in the property's currency are disclosed before payment (Article 4 of Regulation 2021/1230, formerly Article 3a of 924/2009 added by 2019/518).

Can the guest refuse and pay in euros?

Yes. The European Commission says customers can always say no and pay in the local currency.

Since when does this apply?

Prior information at the point of sale since 19 April 2020; the electronic message from the customer's bank since 19 April 2021.

Sources

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