Mumbai: ICICI Bank has announced an increase in the Dynamic Currency Conversion (DCC) fee applicable on debit card transactions. The revised charges will come into effect from June 21, 2026.
The bank has informed customers that the DCC fee will be increased from the existing 1 percent to 3.5 percent, resulting in higher costs for certain international transactions.
What Has Changed?
Under the revised structure, customers using ICICI Bank debit cards for eligible international transactions will have to pay a DCC fee of 3.5 percent, compared to the earlier charge of 1 percent.
This marks a significant increase in transaction-related costs for customers who frequently make payments outside India or use international online services.
Which Transactions Will Be Affected?
The revised fee will apply to transactions that are processed in Indian rupees outside India or through foreign merchants.
These may include overseas shopping, payments made on international websites, subscriptions to global streaming platforms, travel bookings and other cross-border purchases where the payment is converted into Indian rupees.
Understanding Dynamic Currency Conversion
Dynamic Currency Conversion, commonly known as DCC, is a payment feature that allows customers to pay in their home currency instead of the local foreign currency while making purchases abroad.
For example, an Indian customer travelling overseas may be offered the option to pay in Indian rupees rather than the local currency. The amount is converted at the point of sale, and the customer sees the final amount in rupees before completing the transaction.
Impact on Customers
The increase in DCC charges is expected to raise the overall cost of international spending for debit card users.
Customers making foreign purchases, paying for international subscriptions or carrying out cross-border transactions in Indian rupees will now incur a higher fee. As a result, the total amount payable on such transactions will increase from June 21, 2026.
Consumers who frequently use debit cards for overseas payments may need to review their payment choices to avoid additional costs.
