Quick Summary:
- Pay in USD to let your card network set the exchange rate.
- DCC often adds a hidden margin on top of exchange rates.
- Look for “pay in GBP/EUR” prompts on the terminal and decline.
- Ask for a re-run in USD if you were charged incorrectly.
Picking up a car hire in Los Angeles, you might be asked a question that sounds harmless: “Do you want to pay in USD, or in pounds/euros?” That second option is usually Dynamic Currency Conversion (DCC). It can feel helpful because you see a familiar currency amount on the screen, but it often increases the final cost through a marked-up exchange rate and sometimes extra fees.
This article explains how DCC works at the counter, why paying in USD is commonly cheaper for UK and European travellers, and how to spot and decline DCC during your Los Angeles car hire pick-up. The goal is not to make payment complicated, it is to help you recognise when “convenience” is being priced in.
What DCC is, and why it appears at car hire pick-up
DCC is a service offered by some payment processors and merchants that lets you pay in your card’s “home” currency at the point of sale. If your UK-issued card is used in the US, the normal method is that the charge is made in USD and then converted by your card network (Visa or Mastercard) and your card issuer, using their exchange rate and any foreign transaction fee your card applies.
With DCC, the conversion happens earlier and is controlled by the merchant’s payment provider. You see the amount in GBP or EUR on the terminal and the receipt, which can make budgeting feel easier. The trade-off is that the exchange rate used is frequently worse than the network rate, and the difference is effectively a margin. Sometimes that margin is disclosed as a percentage, sometimes it is only visible if you compare rates.
Car hire desks are a common place to encounter DCC because transaction values are often higher than day-to-day purchases, so even a small percentage makes a noticeable difference. It can also appear when paying a deposit, settling the final rental charges, or paying optional extras.
How DCC changes the exchange rate and fees
The most important point is that DCC does not remove fees, it changes who sets the exchange rate and what margin is applied. When you pay in USD, the conversion is handled by the card scheme and issuer. When you accept DCC, the conversion is handled by the merchant’s DCC provider.
Here is what typically changes:
1) The exchange rate. DCC commonly uses a rate that is less favourable than the interbank or card-network rate. The difference might be a couple of percent or more. On a larger car hire total, that difference can add up quickly.
2) The “DCC markup”. Sometimes the screen mentions a percentage above the base rate. Sometimes it simply says you are guaranteed a rate and shows the total in your home currency. The lack of clarity is part of the issue, because you may not realise you are paying extra for the conversion service.
3) Your card’s foreign transaction fee. If your card charges a foreign transaction fee, paying in USD may trigger it. If you use DCC and pay in GBP, that fee may not apply because the transaction is now treated as domestic. However, the DCC markup can easily exceed the foreign transaction fee you would have paid. If you have a card with 0% foreign transaction fees, paying in USD is often the cleanest option.
4) Refund and dispute clarity. Refunds can be simpler to understand when the original charge is in USD and the card issuer converts it. With DCC, the merchant has converted it, and the way refunds are processed can be more confusing if exchange rates have moved.
So, should you pay in USD or accept DCC in Los Angeles?
For most travellers collecting a car hire in Los Angeles, paying in USD is usually the better value because it avoids the DCC provider’s marked-up exchange rate. That is the core answer. The exceptions are specific and depend on your card and your priorities.
Pay in USD if any of the following are true:
You have a 0% foreign transaction fee card. In this case, you are very likely better off paying in USD and letting your issuer apply its conversion rate.
You want the most transparent comparison. Paying in USD allows you to compare the rental agreement and receipt amounts directly in the local currency, which helps spot unexpected add-ons.
You are paying a large amount. The higher the transaction, the more the DCC markup tends to matter.
Consider DCC only if all of the following are true:
Your card charges a high foreign transaction fee and you cannot use an alternative card, and you are willing to pay extra for the certainty of seeing the exact GBP or EUR amount at the counter. Even then, it is worth checking what the DCC markup is before agreeing.
The practical default for Los Angeles car hire pick-up is: choose USD, decline DCC.
Where DCC shows up during a Los Angeles car hire transaction
DCC is not always presented as “DCC”. It can appear as a simple choice on the card terminal, or as a question from the agent. It is most common at these moments:
When placing the security deposit. Many rentals pre-authorise a deposit at pick-up. The terminal may offer “USD” versus your home currency.
When paying the rental charges at return. Final settlement is another chance for DCC to be offered, especially if there are additional charges.
When paying for optional extras. Items like additional driver fees, toll products, or fuel options may be charged separately.
If you are comparing options for pick-up at LAX, these Hola Car Rentals pages can help you understand the local airport context and supplier desks, which is where you are most likely to face the DCC question: car hire at Los Angeles Airport (LAX) and Los Angeles LAX car hire.
How to spot DCC in seconds at the counter
DCC relies on you agreeing to pay in your home currency. Spotting it is mostly about recognising the prompts and wording.
On the card terminal, watch for:
Options like “Pay in GBP” or “Pay in EUR” alongside “Pay in USD”.
Wording such as “Guaranteed exchange rate”, “I accept conversion”, or “Convert to cardholder currency”.
A screen that shows an exchange rate and a margin, sometimes in small text.
From the agent, listen for:
“Would you like to pay in pounds/euros today?”
“It will be easier for you to pay in your own currency.”
“You will know exactly what you are paying.”
None of those phrases are automatically “bad”, but they are common DCC scripts. The key is that you are not required to choose your home currency. In most cases you can insist on USD.
How to decline DCC politely, and what to do if it still happens
Declining DCC does not need an argument. You can simply say: “Please charge me in USD.” If you are asked again, repeat it and, if needed, add: “I do not want currency conversion at the terminal.”
Tips that help in busy Los Angeles pick-up lines:
Use a credit card where possible. Many car hire suppliers prefer credit cards for deposits. Regardless of payment method, you can still request USD for settlement.
Watch the screen before tapping or inserting. DCC is easiest to avoid before you approve the transaction.
Ask to redo the transaction if you spot DCC. If the receipt shows GBP/EUR and you wanted USD, ask immediately for a void and re-run in USD. The earlier you catch it, the cleaner it is to correct.
Keep the receipt. If a correction is needed later, documentation matters.
Does DCC affect the deposit, the final charge, or both?
It can affect either. Some deposits are pre-authorisations rather than completed charges, but DCC can still be applied to a completed payment for the rental itself or for extras. If you see a home-currency amount during any card interaction, assume DCC is being offered.
Also remember that many car hire transactions involve more than one payment event. Even if you successfully pay the deposit in USD, you may be offered DCC again when you settle the final amount.
Why DCC can be especially costly for car hire
Car hire totals can include base rate, taxes, location fees, young driver surcharges, and optional extras. Because DCC is percentage-based in effect, it scales with the transaction amount. A small-looking markup becomes real money on a multi-day rental, particularly if you add insurance products or upgrade vehicles.
If you are selecting suppliers at LAX, it can be useful to understand which desks you will deal with and what the pick-up flow looks like, as the DCC prompt usually appears on a shared card terminal. These pages provide that context for common brands: Enterprise at Los Angeles LAX and Budget at Los Angeles LAX.
A simple checklist before you tap your card
Use this quick mental check right before payment:
1) What currency is displayed? If it is not USD, pause.
2) Is there a “guaranteed rate” or “conversion” message? That signals DCC.
3) Are you being asked to choose between USD and GBP/EUR? Choose USD.
4) Do you have the right card? If you have a 0% foreign transaction fee card, prefer it.
5) Does the receipt match what you chose? Verify before leaving the desk.
If you want a broader overview of Los Angeles LAX rental logistics and what to expect on arrival, the Hola Car Rentals information page can be a helpful reference point: car rental at Los Angeles LAX.
FAQ
Is Dynamic Currency Conversion mandatory at Los Angeles car hire pick-up?
In most cases, no. DCC is typically optional, and you can request to be charged in USD instead. Always check the terminal screen before you approve the payment.
Will paying in USD always be cheaper than DCC?
Not always, but it often is. Paying in USD lets your card network and issuer handle conversion, which is frequently better than a DCC-marked rate. The main exception is if your card charges a high foreign transaction fee and the DCC markup is unusually low.
How can I tell from the receipt whether I accepted DCC?
If the receipt shows the transaction in GBP or EUR, or mentions “currency conversion”, “DCC”, or an exchange rate and margin, you likely accepted DCC. A USD-only receipt usually indicates you avoided it.
What should I do if I accidentally accepted DCC?
Ask immediately for the transaction to be voided and reprocessed in USD, if you are still at the counter. If you only notice later, keep the receipts and contact the merchant and your card issuer to ask what options exist.
Does DCC change the rental price itself?
No, it does not change the USD rental charges on the agreement. It changes the currency conversion applied to your card payment, which can increase the amount you pay in your home currency.
