The revised fee structure will apply to select debit card transactions conducted in Indian rupees under certain international payment scenarios.
According to the bank’s customer communication, the DCC charge will be levied on transactions made in Indian currency at overseas merchant locations. The fee will also apply when payments are processed in rupees with merchants operating in India but registered outside the country.
This means customers could face higher charges on some cross-border purchases even when payments are completed in Indian rupees.
Dynamic Currency Conversion, or DCC, is a payment feature that enables cardholders to pay in their home currency instead of the local foreign currency during international transactions.
For instance, customers making purchases abroad or paying on international websites may receive an option to complete the payment directly in Indian rupees rather than in dollars, euros or other foreign currencies.
Under the revised structure, the DCC fee will rise to 3.5% of the transaction value from the current 1%.
The higher levy could increase costs for customers using debit cards for overseas spending, international subscriptions or transactions routed through foreign merchant networks.
Customers may therefore need to review payment options carefully while carrying out international or cross-border transactions, particularly when selecting the billing currency at checkout.
The revised DCC fee will be applicable on every eligible transaction carried out in Indian currency at international locations and on transactions with India-based merchants registered in foreign countries.
