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HDFC applying very high USD INR rate for international transacations

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ankitfintech

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Hi fellow members,
I hold a HDFC DCB card and I made a international transaction on 7th Aug worth 1416 dollars. When the transaction settled, I see two charges of worth 1,18986 Rs and 2379.7 Rs as foreign current markup fee.
1,18986 / 1416 = 84.02 Rs ( USD -INR rate never went so high from 7th Aug to 9th Aug as can be seen in the snapshot)
2379 = 2% of 1,18986 ( This makes sense since DCB has 2% markup fee)

Can anyone explain how HDFC charged such a high USD-INR rate? Am I missing something?
Will fighting with HDFC result in them paying back the difference amount? Anyone has experience related to this?

Tagging some experts - @Wealth is my birth right! @anirban.choudhury @Walter White @bhavyegoel @TechnoFino

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I am unable to find the link but I remember reading somewhere that there can be a difference in the date of transaction and date of settlement of a foreign transaction with visa. And that the applicable rate of foreign exchange would be on that date as declared by hdfc.

Moreover, banks follow and publish their own foreign currency buy and sell rates which are quite different as we see on the internet.

For offline forex transactions, there is a bargain window in which you can haggle with the bank before placing your order.

With credit cards, the process as you know is automated without any manual intervention.

I will try to find the link and post it here but I am sure to have read about it somewhere. 😉 😊

Thanks!!
 
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>there can be a difference in the date of transaction and date of settlement of a foreign transaction with visa
I understand this but as I said the USDINR rate never reached 84.02 between date of transaction(7th Aug) and settlement date(9th Aug).
And if they don't take the direct USDINR rate(IBR rate) and apply their own rates then why are they taking the foreign currency conversion fee for? They should take only one of the two.
 
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ankitfintech said:
>there can be a difference in the date of transaction and date of settlement of a foreign transaction with visa
I understand this but as I said the USDINR rate never reached 84.02 between date of transaction(7th Aug) and settlement date(9th Aug).
And if they don't take the direct USDINR rate(IBR rate) and apply their own rates then why are they taking the foreign currency conversion fee for? They should take only one of the two.
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I totally agree my friend,

I was just trying to explain the difference in the conversion ratio.

Have you ever visited a bank and compared their foreign currency chart buy and sell rates with those displayed online? That should explain the difference.

Maybe talking to customer care could give some clarity about how they charged this rate of conversion.

But I sincerely feel that the difference is really off the mark in your case.

Thanks!!
 
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ankitfintech said:
Hi fellow members,
I hold a HDFC DCB card and I made a international transaction on 7th Aug worth 1416 dollars. When the transaction settled, I see two charges of worth 1,18986 Rs and 2379.7 Rs as foreign current markup fee.
1,18986 / 1416 = 84.02 Rs ( USD -INR rate never went so high from 7th Aug to 9th Aug as can be seen in the snapshot)
2379 = 2% of 1,18986 ( This makes sense since DCB has 2% markup fee)

Can anyone explain how HDFC charged such a high USD-INR rate? Am I missing something?
Will fighting with HDFC result in them paying back the difference amount? Anyone has experience related to this?

Tagging some experts - @Wealth is my birth right! @anirban.choudhury @Walter White @bhavyegoel @TechnoFino

View attachment 25968
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Discover exchange rates are higher than the rates charged by MC and Visa. The difference is significant.
 
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CARDBITRAGE said:
Nothing out of the ordinary here. Diners offers the worst conversion rates(usually 1-2 % over IBR). Visa and Mastercard will offer the best rates always. HDFC is only responsible for the 2% markup, so there is no point fighting with them. If you do a lot of fx transactions, consider getting a card on Visa/MC platform.
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Thank you for this information. Would use VISA/MC cards for international transactions henceforth.
 
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Diark said:
Are there any international websites that accept diners or did you go to a foreign country?
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The international website (CFA institute) accepted Diners card. But one funny thing was as I was typing the card number it said not accepted but on entering full card details the error went away and the transaction was successful..
 
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ankitfintech said:
The international website (CFA institute) accepted Diners card. But one funny thing was as I was typing the card number it said not accepted but on entering full card details the error went away and the transaction was successful..
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CFA wala portal ka payment gateway bada khatarnak. Ek toh OTP bhi nhi aata toh pata bhi nhi lagta kab successful ho jaata hai.
 
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Even though, my comment here doesn't address the specific question. I am making general comments.
HDFc or for that sake any big bank, make money in these situations only I.e. on overseas spending for the obvious reasons..
Hence need to find a better deal elsewhere before traveling..
No big use in fighting these big corporations, it is just waste of our time.. this is my personal view, not directed at anyone..
 
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saucy said:
@Trust Me @CARDBITRAGE @Walter White
So, what's the best way to make an int purchase?
Do zero forex markup cards help in this case?
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Hey, have you really started trusting me, or are you just putting me on? 🙂.

Although you probably could, because I don't tend to make serious comments unless I believe myself to be on reasonably solid ground.

-- About the subject matter, I'm not really up-to-date on the current goings on (although I'd lived a substantial part of my life abroad).
.
 
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ankitfintech said:
Isn't that true for all international transactions coz the OTP rule is mandated by RBI and international websites don't come under RBI Ambit
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Yes, you are right..

To those interested in:

I never received OTP s for my international transactions. They just debit our card , initially with the Forein currency amount, later in INR..
At First my transaction would be rejected because I disable International transactions(IT) by default..and also get SMS from the Bank stating that enable IT, if I want to proceed further.
This step is very important, once our card no and cvv is out, in international arena, our account will be stuffed..
Hence handle with care..
It happened to my foreign CC, my friends Indian CC..
 
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