If you use your debit card for international shopping or online payments with foreign merchants, your transaction costs are set to rise.
ICICI Bank has announced a steep revision in its Dynamic Currency Conversion (DCC) fee on debit cards, increasing it from 1% to 3.5% of the transaction value. The new charges will come into effect from June 21, 2026, according to an official communication to customers.
WHAT IS CHANGING
The revised DCC fee will apply to certain debit card transactions where currency conversion is involved, even if the payment is shown in Indian rupees. This typically covers situations where Indian users make purchases from foreign merchants or transact on platforms that route payments through international payment networks.
As a result, even rupee-denominated payments may attract higher charges if the underlying transaction is processed as a foreign currency conversion.
WHAT IS DYNAMIC CURRENCY CONVERSION
Dynamic Currency Conversion (DCC) is a service that lets customers pay in their home currency instead of the local currency during international transactions. For instance, when shopping abroad or on foreign websites, users may be given the option to pay in Indian rupees instead of dollars or other foreign currencies.
While this offers convenience and upfront clarity on spending, it often includes additional conversion fees charged by banks or payment processors.
WHAT IT MEANS FOR CUSTOMERS
With the higher DCC fee, overseas and cross-border transactions could become more expensive for debit card users. Customers may need to carefully check payment options at checkout, as selecting the local currency instead of converted rupee pricing can sometimes help avoid extra charges depending on the merchant and network used.
Comments are closed.