Kotak Card Abroad: 3.5% Fee Hits Your Wallet

Kotak Mahindra Bank is raising its Dynamic Currency Conversion fee from 1% to 3.5% plus GST from August 1, 2026. If you use your Kotak card at foreign ATMs, shops, or websites, every transaction just got significantly more expensive.

Here's what happened: Kotak Mahindra Bank is hiking its Dynamic Currency Conversion (DCC) fee from 1% to 3.5% plus GST, effective August 1, 2026.. DCC applies when you pay in Indian rupees using your Kotak card at a foreign ATM, POS terminal, or international website.. This fee is separate from the standard forex markup (typically 1.5%–3.5%) — meaning total charges on a DCC transaction could cross 7% easily..

What you should do: Always choose to pay in the LOCAL foreign currency — never select 'Pay in INR' at foreign terminals or websites to avoid DCC entirely.. Compare your Kotak card's total forex cost against zero-markup travel cards like Niyo Global, IDFC FIRST or SBI's forex prepaid card before your next trip.. Check your Kotak credit or debit card agreement online for the updated fee schedule effective August 1, 2026, and budget your travel spend accordingly..

DCC is almost always optional — merchants abroad default to it because they earn a cut. Firmly say 'charge me in local currency' and you sidestep this fee completely.