Axis Bank and Kotak Mahindra Bank have increased Dynamic Currency Conversion charges on select card transactions. Customers paying in Indian rupees abroad or on international websites may now face fees of up to 3.5% plus GST.
Highlights
- Axis Bank and Kotak Mahindra Bank have increased DCC charges.
- Some Axis Bank credit cards will attract a 3.5% DCC fee.
- Kotak debit-card DCC charges will rise to 3.5% plus GST.
- Kotak’s revised charges will apply from August 1, 2026.
- Axis Bank’s new charges will take effect from August 28, 2026.
- Paying in the local foreign currency may help customers avoid DCC fees.
International card payments are set to become more expensive for some Axis Bank and Kotak Mahindra Bank customers after the two private-sector lenders increased their Dynamic Currency Conversion charges.
Dynamic Currency Conversion, commonly known as DCC, is offered when customers use their debit or credit cards abroad or on international websites. It allows them to complete a transaction in Indian rupees instead of the local foreign currency.
While this option may appear convenient, banks and payment providers charge an additional conversion fee. After the latest revision, customers selecting payment in Indian rupees could face significantly higher charges.
Axis Bank has raised DCC fees on several credit cards. Customers holding My Zone, Select, Privilege and Neo credit cards will now pay a DCC charge of 3.5%, compared with the earlier rate of 1.5%.
The DCC fee on Magnus and Magnus for Burgundy credit cards will be 2%, while Olympus cardholders will continue to pay 1.8%. Axis Bank’s revised charges will become effective from August 28, 2026.
Kotak Mahindra Bank has also sharply increased DCC charges for its debit-card customers. The bank earlier charged 1% plus GST, but the fee will now increase to 3.5% plus GST from August 1, 2026.
The higher charges could have a noticeable impact on travellers, students, business professionals and customers shopping on foreign websites.
For example, on an international transaction worth ₹1 lakh, a customer who earlier paid nearly ₹1,000 as DCC charges may now have to pay around ₹3,500, excluding GST. This means the additional expense could rise by nearly ₹2,500.
Customers should carefully check the payment options displayed at foreign stores, hotels, ATMs and international websites. Experts generally advise choosing the local foreign currency instead of Indian rupees wherever possible.
When customers select the local currency, their bank or card network carries out the conversion according to the applicable exchange rate and foreign currency markup. This may help them avoid the separate DCC fee, though other international transaction charges may still apply.
