ICICI Bank Increases Debit Card DCC Fee to 3.5% from June 21, 2026; International Payments to Cost More

Using your debit card for international purchases or payments to foreign merchants may soon become significantly more expensive. ICICI Bank has announced that it will increase the Dynamic Currency Conversion (DCC) fee on select debit card transactions from 1% to 3.5%, with the revised charges taking effect from June 21, 2026.

ICICI Bank to Raise DCC Fee on Debit Cards from June 21, 2026

The charge will increase from the current 1% of the transaction amount to 3.5%, representing a significant rise in the cost of using debit cards for select cross-border payments.

The revised fee will apply when customers choose to pay in Indian rupees rather than in the local foreign currency during eligible international transactions.

Which Transactions Will Attract the Higher Fee?

The increased DCC fee will apply to specific debit card transactions settled in Indian rupees under two broad scenarios:

Purchases made in Indian rupees at merchant outlets located outside India.
Transactions initiated within India where the payment is processed by a merchant that is registered overseas.

This means that even if a payment appears to be made in rupees, it may still be treated as an international transaction if the merchant's acquiring bank or registration is based in another country.

What Is Dynamic Currency Conversion (DCC)?

Dynamic Currency Conversion is a payment feature that allows cardholders to view and settle an international transaction in their home currency.

For example, when making a purchase abroad at a store, hotel, restaurant or ATM, or while shopping on a global e-commerce platform, customers may be given the option to pay in Indian rupees instead of the local currency.

The conversion is carried out instantly by the foreign merchant or payment processor. While this can appear convenient because the final amount is displayed in rupees, DCC transactions often involve additional charges and less favourable exchange rates compared with paying directly in the local currency.

How the Change Affects ICICI Customers

With the DCC fee rising to 3.5%, overseas travellers and consumers who regularly shop from foreign merchants may need to evaluate their payment choices more carefully.

Whenever a terminal or website offers the option to "Pay in INR" or "Pay in Local Currency," selecting Indian rupees could now result in substantially higher charges. In many cases, opting to pay in the local currency may prove more economical, depending on the exchange rate and card terms.

Although the change does not affect every international debit card transaction, it will increase costs for customers who use the DCC option, whether abroad or on online platforms linked to foreign merchants.

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