Learn · Forex · DCC

What is dynamic currency conversion (DCC)?

When a card machine or ATM abroad asks whether to charge you in INR or the local currency, the rupee option is dynamic currency conversion. The merchant or ATM converts the amount at a rate it sets, which may include its own markup. Choose the local currency.

Why does a terminal abroad offer rupees?

How it works

Your card tells the terminal it was issued in India. If the merchant's bank supports DCC, the terminal can offer to convert the bill into rupees on the spot. That conversion is a service of the merchant and its bank, not of the card network, and the merchant sets the rate. Visa requires the screen and receipt to show both amounts, the exchange rate and any markup, and says the merchant must not choose for you.

DCC, forex markup and ATM fees are three different charges

At a glance
Charge Who sets it Can you avoid it?
DCC rate and markup The merchant or ATM, when you accept rupees Yes: choose the local currency
Forex markup Your card issuer, on foreign-currency transactions Yes, with a 0% forex card
ATM operator fee The bank that owns the ATM, per withdrawal No, though it varies by bank and card network

Accepting rupees can also add a charge from your own bank. HDFC Bank charges a 1.75% DCC markup on transactions in Indian currency at an international location, and on rupee transactions with merchants in India that are registered abroad. HDFC's documents give two start dates for the 1.75% rate: 15 May 2026 in its customer notice and 20 May 2026 in its most important terms. Other issuers publish their own terms in their MITC.

What happens on a 0% forex card?

Zero forex

A 0% forex card is only 0% when the card does the conversion. Pay in the local currency and the network converts the amount with no issuer markup. Accept rupees and the merchant's rate and markup apply instead, so the card's main benefit is lost on that payment.

Using cards abroad

By destination

Common questions

What is dynamic currency conversion (DCC)?
DCC is when a merchant or ATM abroad converts the amount into your card's home currency, rupees for an Indian card, at the point of payment. You then see and pay a rupee amount instead of the local-currency amount.
Should I choose INR or the local currency?
Choose the local currency, such as THB in Thailand or EUR in France. That declines DCC and leaves the conversion to your card. Declining does not stop the payment or the withdrawal.
How is DCC different from forex markup?
Forex markup is your card issuer's charge on a foreign-currency transaction. DCC is a conversion offered by the merchant or ATM, at a rate it sets, which may include its own markup. Some Indian issuers also charge a separate fee on rupee transactions made abroad.
Is DCC the same as an ATM fee?
No. An ATM operator fee is a flat charge per withdrawal on a foreign card, and you pay it either way. DCC at an ATM is only the choice of currency for the withdrawal. You can decline DCC, but not the operator fee.
What does "1.75% on all DCC transactions" mean on an HDFC card?
It is HDFC Bank's dynamic currency conversion markup: a 1.75% fee on transactions charged in Indian rupees at an international location, and on rupee transactions with merchants in India that are registered abroad. At a terminal or checkout abroad, choosing the local currency avoids it, and your card's own forex markup applies instead. HDFC's customer notice dates the 1.75% rate from 15 May 2026; its most important terms say 20 May 2026.
What happens with DCC on a 0% forex card?
If you pay in the local currency, a 0% forex card converts the amount without any issuer markup. If you accept rupees, the merchant's rate and markup replace that conversion, so you lose the benefit of the 0% card.

Sources

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Data compiled from issuer and public information. Details may change — verify with issuer. Reference data, not financial advice.

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