Axis Credit Card Atlas Forex charges on Airbnb

[Adith]

DCC is usually around 1% + GST for most cards and forex rate would be more like around 2% + GST even for very good cards. Therefore DCC is always beneficial when you get reward points.

But doesn't this not count the difference in the conversion?

My understanding was that say for example 100 usd is worth 8300 , when forex is calculated, it's calculated 3.5% + gst on the 8300. So a 100 usd purchase would be around 8600 with forex.

Whereas in dcc , 100USD would be worth 8700 instead since the conversion rate is higher. So 1.5% on this makes it 8800 on a 100 usd purchase.

This was my understanding and why people always recommend doing international transactions in the foreign currency rather than dcc.

Is this wrong ?

 

[Ash8]

But doesn't this not count the difference in the conversion?

My understanding was that say for example 100 usd is worth 8300 , when forex is calculated, it's calculated 3.5% + gst on the 8300. So a 100 usd purchase would be around 8600 with forex.

Whereas in dcc , 100USD would be worth 8700 instead since the conversion rate is higher. So 1.5% on this makes it 8800 on a 100 usd purchase.

This was my understanding and why people always recommend doing international transactions in the foreign currency rather than dcc.

Is this wrong ?

Yes its wrong. With DCC it would be 8300 + 1.5%

 

[Adith]

Yes its wrong. With DCC it would be 8300 + 1.5%

But this isn't always the case right ? Isn't that why it's always suggested to check ? Forex is usually days rate set by visa or MasterCard but dcc depends on what the conversion to inr shows up at that spot correct? 1.18 or 1.5% on top of that.

 

[Ash8]

But this isn't always the case right ? Isn't that why it's always suggested to check ? Forex is usually days rate set by visa or MasterCard but dcc depends on what the conversion to inr shows up at that spot correct? 1.18 or 1.5% on top of that.

You are overthinking about the scenario here. If you really want to find that corner case scenario where forex is cheaper then you can try it by all means. For simpler life, 1% DCC will always be cheaper than 2% or more Forex conversion rate. Most of the people would tell you take DCC wherever possible, it will always turn out to be cheaper.

 

[Half Human]

But doesn't this not count the difference in the conversion?

My understanding was that say for example 100 usd is worth 8300 , when forex is calculated, it's calculated 3.5% + gst on the 8300. So a 100 usd purchase would be around 8600 with forex.

Whereas in dcc , 100USD would be worth 8700 instead since the conversion rate is higher. So 1.5% on this makes it 8800 on a 100 usd purchase.

This was my understanding and why people always recommend doing international transactions in the foreign currency rather than dcc.

Is this wrong ?

Same ship here adith bro... Last 2 years was a lie for me too.. not only that the credit card buffs on YouTube are spreading this only.... 😅

Funny thing - Asked Chat GPT multiple times, in multiple ways... Even GPT sticks with the popular notion - FOREX + DCC.

I really am confused...

But will be believing the seniors here now.

 

[Adith]

Same ship here adith bro... Last 2 years was a lie for me too.. not only that the credit card buffs on YouTube are spreading this only.... 😅

Funny thing - Asked Chat GPT multiple times, in multiple ways... Even GPT sticks with the popular notion - FOREX + DCC.

I really am confused...

But will be believing the seniors here now.

From what I read , paying in local currency ( foreign currency) of the country during international transactions is best for pos machines . Whereas if you are doing international transactions online , seeing which one is better is the best option.

Post in thread 'Dcc and markup charges on international transactions through credit card' https://www.technofino.in/community...actions-through-credit-card.25042/post-880371


Post in thread 'Which card to be used on Foreign Transactions? - Suggestion' https://www.technofino.in/community...ign-transactions-suggestion.27846/post-684491

This comment mentions what I typed , the increased conversion rate problem with dcc.
I've seen a few comments like this.

 

[Half Human]

I really don't understand. Even IDFC says DCC charges are over and above the forex charges... So how come atlas is giving DCC without Forex?

Can someone pls explain?

So much lost in translation 🥺

 

[Adith]

I really don't understand. Even IDFC says DCC charges are over and above the forex charges... So how come atlas is giving DCC without Forex?

Can someone pls explain?

So much lost in translation 🥺

Usually dcc is separate and forex is separate. I'm confused why idfc is saying dcc is applied on top of forex.

The unfavorable exchange rate is what I was talking about. But dcc on top of forex is something new I've heard.

 

[Half Human]

Usually dcc is separate and forex is separate. I'm confused why idfc is saying dcc is applied on top of forex.

The unfavorable exchange rate is what I was talking about. But dcc on top of forex is something new I've heard.

So should I comprehend that for Atlas if I am using INR the Tony extra charge would be DCC of 1.77%? And no need to be concerned about Forex charge of 4.13% right @Adith bro?