E-Commerce Merchants Selling in Brazil, Listen Up

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E-Commerce Merchants Selling in Brazil, Listen Up

The Association of Brazilian Credit Cards and Services Companies (Abecs) recommended that issuers no longer accept transactions using Dynamic Currency Conversion (DCC).  As a result of this recommendation, two major issuers in Brazil, Itau and Bradesco, have stopped allowing purchases using DCC on credit cards they issue effective as of September 13th.  With DCC, merchants control when they hit the consumers’ cards with the foreign exchange rate.  For these two major issuers who will no longer accept DCC transactions, they are regaining control over charging their cardholders the FX rate.


DCC is useful for merchants who sell cross-border because it enables them to present an offer in the shopping cart in the purchaser’s local currency.  According to Abecs’ Executive Director, Ricardo Viera, his agency was fielding complaints from consumers who had purchased in Brazilian reals but were seeing transactions on their credit card statements in U.S. dollars.  By disallowing DCC, merchants could face two headaches – increased shopping cart abandon rates and different processing for customers in Brazil.


Merchants who are selling into Brazil will need to monitor whether this impacts their sales and processing costs enough to warrant alternative options, such as setting up domicility in Brazil in order to present and settle transactions in Brazilian reals.

For more information on the switch, visit our friends at CardNotPresent.com.

By | 2013-09-16T20:50:59+00:00 September 16th, 2013|Categories: Blog Post|0 Comments

About the Author:

Melanie Stout began her career at Synapse Group nearly 20 years ago, blazing the trail for continuous service magazine subscriptions. After Synapse Group, she successfully built and launched the first direct-to-consumer recurring revenue stream at WebMD.com. Prior to PLC, Melanie was Vice President of Marketing and Communications for a SaaS-based healthcare IT company. She has combined her knowledge of the subscription economy with B2C, B2B, and B2P marketing, to help companies of all sizes increase conversions, improve retention, and reduce operating costs. Melanie has participated as a panelist at the CNP Expo and as a moderator at the Subscription Insider event, Mastering Payment Processing for Recurring Revenue.