Credit Card DCC charges explained

[TechnoFinoTechnoFino is verified member.]

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 -

 

[Aravind P]

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?

Interesting. How did you make this calculation to find what is cheaper?
I also paid in INR for singapore airlines. After how many days you got the miles?

 

[VibrantAnkur]

Interesting. How did you make this calculation to find what is cheaper?
I also paid in INR for singapore airlines. After how many days you got the miles?

If you pay in USD, you'll be charged USD as per exchange rate + 3.5% Forex + GST

If you pay in INR, you'll be charged INR + 1% DCC + GST.

You can calculate both and choose which is cheaper accordingly.

The miles will be credited within 3-4 weeks.

 

[sidsonn]

Interesting. How did you make this calculation to find what is cheaper?
I also paid in INR for singapore airlines. After how many days you got the miles?

They show the INR and USD values both on the website. So you can check the Visa website for the USD-INR rate. Using that calculate the base amount you have to pay. Add 3.5% forex markup and 18% on that forex markup charge as well to get your full amount.
The Visa rate is already marked up from what you see on Google. Then add the bank's markup charge and GST so the difference becomes quite substantial

 

[Aravind P]

They show the INR and USD values both on the website. So you can check the Visa website for the USD-INR rate. Using that calculate the base amount you have to pay. Add 3.5% forex markup and 18% on that forex markup charge as well to get your full amount.
The Visa rate is already marked up from what you see on Google. Then add the bank's markup charge and GST so the difference becomes quite substantial

Thank you for the explanation!