Credit Card DCC charges explained

[TechnoFino]

Recently, several banks have informed their customers about a new policy regarding Dynamic Currency Conversion (DCC) fees. As per the terms and conditions, a 1% DCC fee will be levied by the bank in two scenarios:

1. If you carry out a transaction in Indian Rupees outside of India.
2. If you carry out a transaction in Indian Rupees within India, but the merchant is registered outside of India.

However, in both these cases, the bank cannot charge you DCC fees if the transaction is made in any foreign currency. Instead, foreign currency markup charges will apply. It's important to note that DCC and foreign currency markup charges cannot be imposed together.

Video Explanation Here -

 

[hemant ojha]

Many people are getting DCC charges for Zomato, Flipkart, Paytm and other payment for using Axis cards.. I feel like credit card companies are making these things so complicated that many people will stop using credit cards for international payments

 

[RupayMan]

Myntra, Zomato are charged for DCC, they have Indian business also right?
They are promoting using our Indian actors and even in local launguages, but Yet they are under Foreign category?

 

[TechnoFino]

Many people are getting DCC charges for Zomato, Flipkart, Paytm and other payment for using Axis cards.. I feel like credit card companies are making these things so complicated that many people will stop using credit cards for international payments

I'm sure it's an error on the axis side. I hope they will fix this soon. we should file complaint with axis as of now.

 

[anirban.choudhury]

@TechnoFino
I have a doubt here as you said forex markup and dcc cannot be applied at same time , so suppose a card has forex markup as 3.5% and dcc as 1% , in that case isn’t it good to do your transaction with dcc ( selecting inr ) in international spends ??

 

[caabhi]

Recently, several banks have informed their customers about a new policy regarding Dynamic Currency Conversion (DCC) fees. As per the terms and conditions, a 1% DCC fee will be levied by the bank in two scenarios:

1. If you carry out a transaction in Indian Rupees outside of India.
2. If you carry out a transaction in Indian Rupees within India, but the merchant is registered outside of India.

However, in both these cases, the bank cannot charge you DCC fees if the transaction is made in any foreign currency. Instead, foreign currency markup charges will apply. It's important to note that DCC and foreign currency markup charges cannot be imposed together.

Video Explanation Here -

It is imperative now to check with vendor if he is registered outside India where we have doubt!

 

[sam4]

@TechnoFino
I have a doubt here as you said forex markup and dcc cannot be applied at same time , so suppose a card has forex markup as 3.5% and dcc as 1% , in that case isn’t it good to do your transaction with dcc ( selecting inr ) in international spends ??

I think when you select INR as transaction currency instead of foreign currency, payment gateway or merchant will show you final amount after converting and also adding all the markup applicable. And now your bank will add DCC (1%) extra on that amount. So basically you end up paying more in case of DCC.
So If you purcahse 1 USD with indian cc you will be charged visa/mastercard exchange rate for that particular date of transaction plus forex markup+gst of your cc issuer.
And if you aske or select INR for transaction then merchant or payment gateway show you the amount equivalent of forex rate at that particular time(including all markup an taxes applicable) which is almost close to the 1st scenario or may be higher and you will be charged 1% +gst extra as DCC.
Above information is my understanding. It may be incorrect as its all backend process and we cant be sure of all the charges going to apply for our transaction and rate is also dynamic so tracing particular transaction is headache. so any further information by payment gateway expert is appreciated.
My opinion is never transact in INR (especially for high value transaction) in foreign country/website to avoid shocking charges later instead of buy forex card/currency with best rate and be sure of all the charges beforehand.

 

[HazelBlotch]

I'll just use Amex for my international transactions then. At least I won't have to worry about stuff like this.

 

[anirban.choudhury]

I think when you select INR as transaction currency instead of foreign currency, payment gateway or merchant will show you final amount after converting and also adding all the markup applicable. And now your bank will add DCC (1%) extra on that amount. So basically you end up paying more in case of DCC.
So If you purcahse 1 USD with indian cc you will be charged visa/mastercard exchange rate for that particular date of transaction plus forex markup+gst of your cc issuer.
And if you aske or select INR for transaction then merchant or payment gateway show you the amount equivalent of forex rate at that particular time(including all markup an taxes applicable) which is almost close to the 1st scenario or may be higher and you will be charged 1% +gst extra as DCC.
Above information is my understanding. It may be incorrect as its all backend process and we cant be sure of all the charges going to apply for our transaction and rate is also dynamic so tracing particular transaction is headache. so any further information by payment gateway expert is appreciated.
My opinion is never transact in INR (especially for high value transaction) in foreign country/website to avoid shocking charges later instead of buy forex card/currency with best rate and be sure of all the charges beforehand.

Yeah that my understanding was . I was just understanding the point where it’s mentioned either dcc or markup is applied and not both .

 

[sam4]

It is imperative now to check with vendor if he is registered outside India where we have doubt!

It would be great help for like users of this community and many cc enthusiast if on final transaction page (or OTP submission page) MCC and also merchant registration country code is visible. But its like dream come true for credit card enthusiast especially when every other week credit card company removing particular MCC from reward earning or milestone benefits.

 

[raj007]

I made a international transaction in INR and same transaction is cancelled and refunded but DCC charge and gst on it have not been reversed. Called customer care to ask why no reversal of dcc and gst, they said as per policy dcc and gst on it, are not reversible.
Is this true?

 

[SMGROW]

It would be great help for like users of this community and many cc enthusiast if on final transaction page (or OTP submission page) MCC and also merchant registration country code is visible. But its like dream come true for credit card enthusiast especially when every other week credit card company removing particular MCC from reward earning or milestone benefits.

It is imperative now to check with vendor if he is registered outside India where we have doubt!

Completely Agree
I recently booked an air ticket directly on KLM India website for a fare displayed in INR. I got charged DCC and GST on same.
The final invoice came from KLM India with their office address mentioned in New Delhi. When I called the Axis support line they told me that KLM is a merchant registered outside of India.

 

[pranavcool]

Can i get dcc waived through rm in hdfc ?

 

[Rahul Gupta]

Can i get dcc waived through rm in hdfc ?

N O P E.

 

[dreamchaser12]

Completely Agree
I recently booked an air ticket directly on KLM India website for a fare displayed in INR. I got charged DCC and GST on same.
The final invoice came from KLM India with their office address mentioned in New Delhi. When I called the Axis support line they told me that KLM is a merchant registered outside of India.

Dcc charges deducting after the transaction made or instantly?

 

[SMGROW]

Dcc charges deducting after the transaction made or instantly?

DCC charges were posted after 2 days from the date of transaction.

 

[dreamchaser12]

DCC charges were posted after 2 days from the date of transaction.

Ok thank u. Dcc charges also applicable on debit cards also Right?

 

[Chiku]

Does Amex cards charge DCC?

 

[VibrantAnkur]

Is it normal to get charged DCC Markup on Axis Atlas card for transaction on Singapore Airlines? At the payment page, it didn't show me the prices in USD, only INR was shown.

 

[sidsonn]

Is it normal to get charged DCC Markup on Axis Atlas card for transaction on Singapore Airlines? At the payment page, it didn't show me the prices in USD, only INR was shown.

Even I was charged DCC Markup on Axis Atlas on Singapore Airlines. The merchant on the statement is mentioned as Singapore Airlines, Singapore.
Before making the final payments, SIA allows you to select the currency of payment between INR and USD (you can change to SGD as well). In my case, the INR amount + DCC + GST was still cheaper than paying in USD (not adding the forex markup charges).

Btw, did you get edge miles for this payment?