Okay, before we discuss what's going on, Let ask ask you a question.
When we apply for a credit card, what do we think?
I received an email from HDFC Bank itself two days ago. That email title is "Important Update on your HDFC Bank Credit Card ending XXXX."
In this email, they inform us that they are going to change into 3 categories,
1. Reward Points Accrual.
The most impactful change is the shift in the spending threshold for earning rewards.
1(a). New Multiplier: Reward points will now be accrued for every ₹200 spent, moving up from the previous threshold of ₹150.
1(b). Affected Cards: This applies to a wide range of popular cards, including the Regalia series, Diners Club variants, and most Business cards
1(c). Exceptions.
. Premium Tier: No changes for Infinia (Metal/Regular), Diners Black (Metal/Regular), and BizBlack
. Cashback/Co-branded: No changes for Millennia, Swiggy, Tata Neu, Marriott Bonvoy, or ShoppersStop cards.
2. Dynamic Currency Conversion (DCC) Fee.
The Dynamic Currency Conversion (DCC) Fee is a specific markup charged when you choose to pay in Indian Rupees (INR) for transactions that involve foreign entities. According to the HDFC Bank update.
2(a). New DCC Fee Structure
1. Revised Rate: The fee is set at 1.75% per transaction.
2. Effective Date: May 15, 2026.
3. International Locations: If you are physically abroad (e.g., at a hotel or retail store in London) and choose to settle the bill in Indian Currency (INR) instead of the local currency (GBP).
4. Foreign-Registered Merchants: If you are making a purchase in India from a merchant that is registered in a foreign nation, even if the transaction is carried out in INR. This often happens with global online services, app stores, or streaming platforms that process payments through offshore entities.
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WATCH OUT FOR THIS
Always use the local currency of that respective country. In this case, London.
Let me Explain step-by-step.
Step 1. Terminal used (or Website)
> When you swipe your HDFC card at a foreign store or enter your details on a foreign website (like a London-based streaming service), the payment terminal recognizes your card as being issued in India.
Step 2: The Choice
> The terminal (or website) will show you a prompt:
"Would you like to pay in [Local Currency, e.g., GBP] or [Home Currency, i.e., INR]?"
If you choose INR, you are opting into DCC.
Step 3: The Merchant’s Conversion
> The conversion from the local price to INR happens instantly at the point of sale.
The Exchange Rate: This is set by the foreign merchant’s bank, not HDFC. They often use a rate that is 3% to 5% higher than the actual market rate.
The Result: You see exactly how many Rupees you are "paying" on the screen right then.
Step 4: HDFC’s Part (The New Fee)
Once you agree to that INR amount, the transaction is sent to HDFC Bank in Indian Rupees. This is where the HDFC Bank update kicks in:
HDFC sees that this is an international transaction settled in INR.
They then add the 1.75% DCC markup fee on top of that amount.
Summary of the Math
To give your readers a clear example:
Item Price: £100
Merchant Conversion: The merchant bank converts £100 to ₹12,638 (using a poor rate).
HDFC Fee: HDFC adds 1.75% of ₹12,638 = ₹221.16.
Final Bill: You pay ₹12,859.16.
On top of that, I think we need to pay 18% GST on ₹221.16, so it could be like ₹39.81, so you end up with a final price of ₹12,898.97.
To be hosnet i dont sure about this one. BUT! In India, we have to pay GST. So that's why I don't add this is the Final Bill.
IF some one conform it, please let us know in comment we will update this one.
3. Card Re-issuance Fee.
This one is simple,
Just ( Maybe 18% GST on it, HDFC does not confirm it)
- ₹199 for non-metal card variants
- ₹3,500 for metal card variants
⚠️ Disclaimer: This content is for informational purposes only and should not be considered as financial advice. Please consult with a qualified financial advisor before making any financial decisions. We may receive compensation from some of the products and services mentioned on this site.
Cardwisehq Team
editor
Cardwisehq Team is an editor and contributor for CardwiseHQ.
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