Saturday, 22nd June, 2019

What are the charges on HDFC bank debit card if I swipe it abroad?

If you are wondering about the fees incurred when you do shopping by swiping your HDFC bank debit card at some merchant location / point of sale (POS) machine during your travel abroad then it will be:

3.5% (cross currency mark-up charges by HDFC) of the amount you spend in Indian rupees + 18% (goods & services tax by Indian government) on that 3.5%


You spend 1000 rupees:

Fee 1: 3.5% of 1000 = 35
Fee 2: 18% GST on 35 = 6.3
Total = 35 + 6.3 = Rs 41.3

So if you spend 1 lakh rupees either in a single transaction or spread across multiple transactions outside India, the bank will charge you 4130 rupees in total.

Each time you buy something using your debit card, there will be 3 lines for that purchase inside your netbanking account, you just need to be able to clearly identify them.

1. The amount you paid to buy something, converted from the foreign currency into Indian rupees as per that day’s exchange rate

2. FCY CONVERSION MARKUP FEE = Fee 1 mentioned above, which is 3.5% foreign currency conversion markup fee on the amount you paid

3. IGST-VPS………….-RATE 18.0 -21040 = Fee 2 mentioned above, which is 18% Indian GST on the 3.5% foreign currency conversion markup fee

And in this post I have explained the charges HDFC bank will take from you when you withdraw cash in foreign currency using HDFC ATM/debit card in a foreign ATM outside India.