If you frequently use your debit card for overseas shopping or online purchases from foreign merchants, your transactions are set to become more expensive from next year.
ICICI Bank has announced that it will revise the Dynamic Currency Conversion (DCC) fee on debit cards, increasing it sharply from 1% to 3.5% of the transaction value. The new charges will take effect from June 21, 2026, the bank said in an official communication to customers.
WHAT IS CHANGING
The revised DCC fee will apply to select debit card transactions where currency conversion is involved, even if the payment appears to be made in Indian rupees. This typically includes purchases made in India but processed through foreign payment networks, as well as transactions at international locations where rupee-based payment options are offered.
In practical terms, customers may still see rupee billing at checkout, but the additional conversion-related charge will be higher under the new structure.
WHAT IS DYNAMIC CURRENCY CONVERSION
Dynamic Currency Conversion (DCC) is a payment feature that allows customers to pay in their home currency instead of the local currency during international transactions. For example, while shopping abroad or on foreign websites, users are sometimes given the option to pay directly in Indian rupees instead of dollars or other currencies.
While this can make pricing more transparent at the point of sale, it often comes with extra conversion charges imposed by banks or payment networks.
WHAT CUSTOMERS SHOULD NOTE
With the revised fee, customers may need to be more careful while selecting payment options during overseas or cross-border transactions. Choosing the local currency instead of converted rupee pricing could help avoid additional charges in some cases, depending on the merchant and payment network.
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