What is DCC Markup Fee?

Hey Buddy,

NoBroker InstaCash Loan

Get upto Rs. 10 Lakhs Instantly in your Bank Account with hassle free auto repayment.

Instant approval and disbursement

Interest rate starting 12.99%

Withdraw now

If you've ever used a credit card or an ATM, you're probably aware that most transactions are subject to a fee if you've done any online shopping on a foreign website or travelled overseas. One sort of currency conversion cost is dynamic currency conversion (DCC). Most currency conversion costs are assessed by the ATM network or credit card payment processor (often Visa or MasterCard). The merchant charges DCC markup fees, usually through a service provider.

What is Dynamic Currency Conversion: Key takeaways

• You can view your international credit card transactions in your local currency at the moment of sale via a service offered by the merchant called dynamic currency conversion (DCC), also known as cardholder preferred currency (CPC) (POS).

• DCC charges more fees than your credit card payment processor does.

• DCC is a choice, and you are free to reject it.

• You are still liable for any foreign transaction fees imposed by your credit card when using DCC.

The standard foreign exchange transaction fee for MasterCard and Visa is 1%. The fee, which can range from 1.5% to 3% or even more, is added on by the majority of credit card providers as an additional percentage. As a result, this cost varies depending on the credit card company.

Every credit card issuer is required to publish or make known the costs associated with international transactions at the time of issuance. If the issuer doesn't, the cardholder must receive compensation.

However, this regulation was used in the past. Now, the credit card agreement explains every detail in detail. Therefore, before applying, it is essential to thoroughly read the entire credit card agreement. The issuer's official website also lists these crucial facts.

Every time a foreign transaction is performed with an Indian credit card, the Cross-Currency Markup is assessed. In India, credit card issuers typically charge between 3% and 5%, though this varies from bank to bank.

Additionally, rather than the "transaction date," this is applied to the "settlement date." A couple of India's top banks charge the following markup on currency conversions:

• 3.5% for HDFC Bank

• 3.5% for Axis Bank

• 2.5% at Kotak Mahindra Bank

MasterCard and Visa, two widely used payment networks, serve as the intermediaries between the retailer from where a foreign transaction is being made and the issuing bank (HDFC, SBI, Kotak Mahindra, Axis, etc.) As a result, both of these payment networks levy 1% on the issuing bank and 2% if the payment network is different when a credit card is used outside of India.

Therefore, before making any form of overseas payment using a credit card, it is crucial to study the charges.

I would like to conclude here about DCC markup fees. I hope this helps:)

Read More: