Quick Summary:
- Choose to pay in USD unless your card charges unusually high fees.
- Decline Dynamic Currency Conversion if the exchange rate looks worse.
- Check the terminal screen for “GBP” prompts before you tap.
- Keep receipts showing currency choice, rate, and any DCC mark-up.
At a New York car hire pick-up desk, you may be asked whether you want to pay in USD or in GBP. That choice often appears when the rental agent runs your card for a deposit, pre-authorisation, or final payment. If the card machine offers to charge you in GBP, that is usually Dynamic Currency Conversion, often shortened to DCC.
DCC can sound convenient because it shows a familiar amount in pounds there and then. The catch is that convenience often comes with a poorer exchange rate, and sometimes an extra “conversion” margin built into the rate. For many UK travellers, the cheaper option is to pay in USD and let their card provider convert the currency at their own rate. That is not always true, but it is the default that tends to win in real-world comparisons.
This guide explains how DCC works in practice at the counter, the common places it appears during car hire in New York, and how to decide quickly which option is likely to cost less on a UK card.
What DCC is, and why it appears at car hire pick-up
DCC is a service offered by payment processors and merchants that lets you pay in your home currency when you are abroad. Instead of charging you in USD in the United States, the terminal charges you in GBP at an exchange rate chosen by the DCC provider.
At car hire pick-up, DCC can show up because rental desks routinely take card payments that are larger than the base rental cost. You might see one or more of these transactions:
1) A security deposit pre-authorisation, sometimes called a hold. This is not a charge, but it reserves funds on your card until the car is returned and the hold is released or replaced by a final charge.
2) A charge for the rental itself, either at pick-up or at drop-off, depending on the supplier and your payment arrangement.
3) Extra items added at the desk, such as additional driver fees, toll products, fuel options, child seats, or upgrades.
DCC is most likely to be offered when your card is issued outside the United States and the terminal detects it. In New York, this can happen at major airport locations like JFK, and also at nearby hubs such as Newark. If you are comparing airport options for car hire, it helps to know that DCC can appear regardless of which side of the Hudson you pick up from, whether that is car rental at New York JFK or car hire at Newark Airport (EWR).
How DCC works at the counter, step by step
In a typical New York car hire pick-up, the agent enters the amount and asks you to insert, tap, or swipe your card. If DCC is enabled, the terminal may display a choice of currencies, usually USD or GBP, sometimes with an exchange rate and a mark-up message.
If you select GBP, you are authorising the DCC provider to convert the USD amount into GBP at their rate. Your UK card issuer then treats it as a domestic-currency purchase, so it usually will not apply its own foreign exchange conversion, and may not apply its normal foreign transaction fee. That sounds good, but only if the DCC rate is competitive.
If you select USD, the payment is processed in dollars. Your UK card issuer converts the amount into pounds using its own rate, and may add a foreign transaction fee, depending on your card. Many cards, especially fee-free travel cards, either add no fee or a relatively small fee, which often makes paying in USD cheaper than DCC.
A key point is that DCC is a choice. It should not be forced on you. However, the on-screen prompts can be easy to miss if you are tired after a flight, the queue is long, or the agent is moving quickly.
How to spot DCC quickly, even when the desk is busy
DCC is easiest to spot if you know what signals to look for. Use this checklist at the payment terminal and on any paper or email confirmation you receive.
Look for a currency choice: If the screen asks “Pay in GBP or USD?” or shows two buttons, that is a DCC prompt. If you want to avoid DCC, choose USD.
Watch for wording like “Guaranteed exchange rate”: “Guaranteed” can mean “locked in now”, not “best”. It is marketing language commonly used for DCC.
Check for a printed exchange rate and mark-up note: Some terminals show the exchange rate and may mention a margin. If the rate looks meaningfully worse than what you would expect from the mid-market rate, it is a warning sign.
Notice if the amount is shown in pounds at a US desk: At a New York car hire counter, seeing GBP during payment is a strong DCC indicator. Standard processing is in USD.
Read the receipt lines: Receipts may include terms like “DCC”, “Currency Conversion”, “Markup”, “Exchange Rate”, or “Converted Amount”. Keep these receipts in case you need to query the transaction later.
If you are picking up at JFK with a major supplier, you may see similar terminal prompts whether you are collecting from National at New York JFK or Dollar at New York JFK. The DCC prompt is usually driven by the payment setup, not the brand name on the desk.
When paying in USD is usually cheaper on UK cards
For many UK travellers, paying in USD wins because UK card issuers often offer decent FX rates, and some cards have no foreign transaction fee at all. DCC providers, by contrast, commonly build a margin into the exchange rate that can be several percentage points.
Pay in USD is usually cheaper if:
You have a fee-free travel credit card or debit card. These cards typically convert at close to the card scheme rate (Visa or Mastercard) with no additional fee, which tends to beat DCC.
Your card’s foreign transaction fee is modest. Even if your card adds a fee, a typical fee can still be lower than a poor DCC rate. The only way to know is to compare.
The terminal’s GBP total looks inflated. If the GBP figure seems high for the USD amount, that is often the DCC margin showing up.
You want clearer dispute handling. Paying in local currency can simplify chargeback discussions, because there is no extra conversion layer that you agreed to at the point of sale.
There is also a practical angle for car hire. Your deposit or hold can be a large number in USD. A DCC mark-up on a large authorisation can be costly if it later becomes a charge or if extras are added and processed under DCC.
When DCC in GBP might be worth considering
DCC is not automatically wrong in every case. It can be worth considering if your UK card has particularly expensive foreign currency fees, or if you strongly prefer price certainty and are happy to pay for it.
DCC might be worth considering if:
Your card charges a high foreign transaction fee. Some UK cards add around 3% to non-sterling transactions. If the DCC margin is smaller than your combined issuer fees and rate difference, DCC could be competitive. You still need to compare numbers on the day.
You need to match a strict GBP budget at the point of purchase. With DCC, you know the sterling amount immediately. That can help if you are managing cashflow tightly.
Your company expenses system requires GBP amounts. Some travellers prefer DCC because it reduces back-office reconciliation work. That is a convenience decision, not necessarily a money-saving one.
Even in these situations, you should still check the rate displayed. If the terminal does not show the exchange rate and the final GBP amount clearly, treat that as a sign to avoid DCC and pay in USD.
A simple, fast comparison you can do at the desk
You do not need a calculator if you use a quick sense-check.
First, note the USD amount on the screen. Second, if the terminal offers GBP, look at the implied rate. For example, if a USD 500 deposit is offered as GBP 430, the implied rate is about 1.16 USD per GBP. If you know that recent rates are closer to, say, 1.25 to 1.30, then 1.16 is a noticeably worse rate, suggesting a DCC margin.
Third, think about your card fee. If your card adds 0% FX fees, the USD option is very likely to be better. If your card adds 3% and the DCC rate looks only slightly worse, it is closer, but DCC can still lose because the rate margin can exceed 3%.
Finally, remember that the deposit may be a pre-authorisation rather than a charge. Even so, the currency choice can affect what you see pending on your account and, in some cases, how the final settlement is processed if amounts change.
Common DCC scenarios during New York car hire
Deposits and pre-authorisations: The biggest surprise for many travellers is seeing DCC offered for a hold, not just a payment. Choose USD to keep the transaction in local currency.
Upgrades at the counter: If you accept a vehicle upgrade, such as moving to a larger class, the extra cost might be processed immediately. For travellers choosing an SUV in New York, be especially alert to the currency screen because upgrade amounts can be significant. If you are comparing vehicle classes in advance, see SUV rental at New York JFK for typical category expectations, then keep payment currency separate from vehicle choice at the desk.
Pay now versus pay later arrangements: If you have already paid for the rental portion, you might still have a deposit and potential extras at pick-up. DCC can still appear even when most of the cost is settled.
Multiple transactions: You might have one authorisation at pick-up and a final charge at drop-off. Make sure your currency choice is consistent, and check each receipt.
How to decline DCC politely and confidently
If the agent asks, “Would you like to pay in pounds?”, you can simply say, “USD, please.” If the terminal is in your hands, choose USD on-screen.
If the terminal is angled away and the agent is pressing buttons, ask to see the screen before you tap. It is reasonable to say you want to pay in local currency. If you are told it is not possible, ask again, because most systems do allow local currency processing, and DCC is meant to be optional.
After the transaction, check the receipt right away. If it shows a converted GBP amount and you did not intend to accept DCC, raise it immediately while you are still at the desk.
What to do if you think DCC was applied incorrectly
Start with the paperwork. Keep the rental agreement, the merchant receipt, and any email confirmations. Look for DCC wording, the currency, and the rate. If DCC was applied and you did not agree to it, ask the rental desk to void and reprocess in USD where possible.
If the transaction has already completed and the merchant cannot or will not correct it, contact your card issuer. Provide the receipts and explain that you intended to pay in USD, or that you were not offered a clear choice. Outcomes vary, but clear documentation helps.
Also remember that a pending amount can change. A deposit hold might drop off and be replaced by the final charge. Track both entries in your account so you do not assume you have been double-charged.
Bottom line for UK travellers picking up a car in New York
In most New York car hire pick-ups, paying in USD is the safer default for cost-conscious UK cardholders, especially if you use a card with low or zero foreign transaction fees. DCC can be tempting because it shows a sterling figure immediately, but that figure often includes an uncompetitive exchange rate.
The best habit is simple: watch for the currency selection screen, choose USD unless you have a specific reason not to, and keep your receipts. That small moment of attention at the terminal can save more than you expect, particularly when deposits and extras make the amounts larger than the headline rental price.
FAQ
Is DCC the same as paying with my card’s exchange rate? No. With DCC, the merchant’s payment provider converts to GBP at its rate. Paying in USD lets your card issuer convert, often at a better rate.
If my card has 0% foreign transaction fees, should I ever accept DCC? Usually no. A 0% fee card is designed to handle USD spending efficiently, and DCC margins often outweigh any benefit of seeing a GBP amount.
Can DCC be offered on the security deposit, not just the final bill? Yes. Car hire deposits or pre-authorisations can trigger the same currency choice on the terminal, so check the screen at pick-up.
What should I say at the counter to avoid DCC? Ask to be charged in USD, or select USD on the terminal. If asked about pounds, decline and request local currency processing.
Will paying in USD affect my refund or deposit release timing? The timing is mainly set by the rental company and your bank. Currency choice affects conversion cost, not usually how quickly holds are released.
