Confusion about International Markup Fees

So here’s the deal, I have linked my HDFC’s debit MasterCard on iTunes for a monthly subscription. I do realise that iTunes purchases are processed internationally.

However, recently I switched to PayTM’s new VISA debit card to make my iTunes payments. I realised for every payment on iTunes, PayTM charged ≈4% of the total purchase value as “Markup Fees for International In-Store Transaction”.

I looked it up and realised banks do charge a markup fees for international transactions. However, I have never incurred such charges with my HDFC card.

What’s the deal here? Anyone can help out with this?

Hi @Divyaansh_Agarwal

It’s totally depends upon what kind of Credit / Debit card you are using. Most of the cards comes with a markup fees of 3.5% + GST. Some cards offers 2% + GST & Few cards offers ZERO Forex Markup.

Hope this helps!

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Hey, thanks for the response!

I did check that my HDFC card actually has a 3.5% + taxes forex markup. However, was never subjected to any fees on iTunes, at least on passbook. Maybe they deduct forex charges yearly or so.

@Divyaansh_Agarwal You are welcome.

Which HDFC Card you are using for international payments?

HDFC Millennia MasterCard Debit

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They do charge it for me on the same card after few days of transaction under the following narration:

23/03/21 .DC INTL POS TXN MARKUP+ST 200321 210321-MIR21082524XXXXXX MIR21082524XXXXXX 23/03/21 31.50

Thanks for the reply @rmj-s

I saw my statement for the last 3 months. Didn’t see the mention of any such charge.

UPDATE: @rmj-s I also incurred these charges under CRV POS. I got the amount deducted as a bi-yearly it seems.

Appreciate your help. Thanks

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CRV is Credit Reversal, it’s a refund for some transaction not FCY charges.

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I have a similar experience with my Kotak Credit Card which was linked with YouTube Premium subscription. The card charged me Issuer Markup Assessment of 3.5% and GST 18% on the markup fees. I use the base variant of Kotak - Urbane Gold.

@bininishere

Kotak cards didn’t offer Zero Forex markup.

That’s interesting. That means I haven’t had any markup charges yet… Yes i just checked it was credited and not debited.

ok, you mean none of the Kotak variants offer zero mark up fees?

@bininishere yes, you are right. No Kotak credit / Debit card offers Zero forex markup.

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https://www.hdfcbank.com/content/bbp/repositories/723fb80a-2dde-42a3-9793-7ae1be57c87f/?path=/Personal/Pay/Cards/Debit%20Card/Debit%20Card%20Landing%20Page/Debit%20Cards/DC%20Charges%20V.17%20(Revised).pdf

You can have a deeper look at all your current charges on the mentioned card here :slight_smile:

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Thanks a lot @sneh.baxi

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