Definition
When a shop, restaurant or ATM abroad offers to charge your Indian card in rupees instead of the local currency. It looks convenient, but the rate is usually 3–8% worse than your card's own conversion. Always choose the local currency.
How DCC catches Indian travellers
At a card terminal in Paris, the screen asks: pay in EUR or INR? An ATM in Bangkok offers to show the amount in rupees if you accept its conversion. Rupees feel safer because you see the exact figure. But the rate is set by the merchant's payment provider, not your bank, and carries a hidden margin.
Example
You buy a handbag in Paris for €200. At a reference rate of ₹102 per euro, that is ₹20,400.
| Option | You pay |
|---|---|
| EUR on a forex card loaded at ₹103 | about ₹20,600 |
| EUR on a credit card with a 3.5% markup plus GST | about ₹21,250 |
| INR through DCC at a 6% margin | about ₹21,600, before any bank fee |
On a two-week Europe trip with ₹2 lakh of card spends, choosing DCC every time can quietly cost ₹8,000–15,000.
Why you can pay twice
Many Indian banks charge their foreign-transaction markup on any transaction processed abroad, even when it is billed in rupees. So DCC can give you the merchant's poor rate and your bank's fee on top.
Practical advice
- Always choose the local currency: euros in Europe, baht in Thailand, dirhams in Dubai.
- If a waiter brings a terminal already set to INR, ask them to cancel and redo it in local currency.
- At ATMs, decline the conversion offer; the withdrawal still goes through.
- Check your statement after the trip and dispute DCC charges you didn't agree to.
See forex markup for how card costs compare, or talk to our foreign exchange desk before you travel.