Federal Bank offers a diverse range of debit cards. They provide convenience and security for everyday transactions. While there are no ATM withdrawal charges on domestic transactions, Federal Bank Debit Card international transaction charges are applicable. These include markup fees, Dynamic Currency Conversion (DCC) fees, and international ATM transaction fees. Let’s find out what they mean and how much charge you have to pay for each transaction.
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Federal Bank Debit Card International Transaction Charges
When using Federal Bank debit cards for international transactions, various charges apply to ensure transparency and manage costs. Understanding these debit card foreign transaction fees is essential for cardholders who frequently engage in overseas spending or withdrawals. Below are the applicable charges as of June 1, 2024:
| Charge Type | Amount |
| Mark-Up Fee | 3.5% for Visa and Mastercard debit cards; 3.5% for Rupay debit cards |
| Dynamic Currency Conversion Fee | 1% of the DCC transaction amount plus GST |
| Surcharge for POS Transactions | 2.50% of the transaction amount or INR 10, whichever is higher |
| International ATM Transaction Fee | INR 100 for financial transactions; INR 25 for non-financial transactions at other banks’ ATMs |
Also Read: Federal Bank education loan for abroad studies is available for multiple study abroad programs. Click to know more.
Mark-Up Fees
The mark-up fee is a charge applied to all international transactions made with Federal Bank debit cards. As of June 1, 2024, this fee is set at 3.5% for Visa and Mastercard debit cards, as well as for Rupay debit cards.
This percentage is added to the transaction amount, meaning that every time you purchase abroad, this fee will increase the overall cost. For example, if you spend INR 10,000 on an international transaction, an additional INR 350 will be charged as a mark-up fee, which is one part of the Federal Bank Debit Card international transaction charges.
Dynamic Currency Conversion Fee
For transactions that utilize Dynamic Currency Conversion (DCC), a fee of 1% of the DCC transaction amount plus GST applies. This Federal Bank Debit Card international transaction charge is incurred when you choose to pay in your home currency rather than the local currency while abroad.
Opting for DCC can lead to higher costs since the conversion rate may not be favorable compared to local currency payments.
Surcharge for POS Transactions
Federal Bank applies a surcharge of 2.50% on point-of-sale (POS) transactions conducted at petrol pumps and railway stations. Alternatively, a minimum charge of INR 10 will apply if the calculated surcharge is lower than this amount.
This surcharge adds an extra cost specifically for transactions at these locations, which can accumulate over time if you frequently use your card for such payments.
International ATM Transaction Fees
For withdrawals made at international ATMs, Federal Bank Debit Card international transaction charges of INR 100 for financial transactions and INR 25 for non-financial transactions at other banks’ ATMs are applicable.
These fees can add up quickly if multiple transactions are made, impacting your overall cash withdrawal costs while travelling. However, study abroad aspirants can opt for debit cards for students under 18 and other Forex cards for lower transaction fees and additional benefits.
Also Read: Check all about Federal Bank Education Loan Interest Rate here. Know the calculation process and factors affecting the interest on the loan.
Debit Card International Transaction Charge Exemptions for Celesta Scheme Holders
Holders of the Celesta scheme with Federal Bank enjoy significant benefits, particularly regarding Federal Bank Debit Card international transaction charges. One of the most notable advantages is the exemption from international ATM transaction charges.
This exemption provides Celesta scheme holders with a cost-effective option for accessing funds while travelling abroad, allowing them to withdraw cash without incurring additional fees that other debit cardholders would typically face.
- For standard Federal Bank debit cardholders, using ATMs internationally incurs fees of INR 100 for financial transactions and INR 25 for non-financial transactions at other banks’ ATMs.
- However, Celesta scheme holders are exempt from these charges, which can lead to substantial savings.
Benefits of the Celesta Scheme
The Celesta scheme is designed to cater to both NRE (Non-Resident External) and resident account holders, providing a range of benefits beyond just ATM fee exemptions. It includes features like unlimited usage of Federal Bank ATMs without transaction charges and various rewards on spending.
By eliminating international ATM transaction fees, Federal Bank ensures that Celesta scheme holders can access their funds conveniently and economically while enjoying their travels.
Also Read: Apply for Federal Bank personal loans at low interest rates. Check the interest rates, documents, eligibility, and application process.
Limitations on Magnetic Stripe Debit Cards
Federal Bank’s magnetic stripe debit cards, particularly those issued before December 1, 2013, come with specific limitations regarding international usage.
These cards are capped at a maximum transaction limit of INR 30,000 per day across all channels, including ATMs, point-of-sale (POS) transactions, and e-commerce purchases.
The INR 30,000 cap means that cardholders using these older magnetic stripe cards will need to plan their transactions carefully. For example, suppose a customer wishes to make multiple purchases throughout the day or withdraw cash for expenses. In that case, they may find themselves unable to complete all desired transactions due to this daily limit.
Given these constraints, Federal Bank encourages customers to upgrade to EMV chip-enabled cards, which offer enhanced security features and broader usage capabilities. EMV chip cards not only provide better protection against fraud but also typically come with higher transaction limits for both domestic and international use.
By upgrading, customers can enjoy a more seamless banking experience while travelling and avoid the inconveniences associated with the limitations of magnetic stripe cards.
This was all about Federal Bank Debit Card international transaction charges. By being aware of these charges, Federal Bank debit cardholders can effectively manage their international transaction costs and make informed decisions while travelling or shopping abroad.
FAQs on Federal Bank Debit Card International Transaction Charges
Yes, you can use your Federal Bank debit card for international transactions. Ensure that your card is enabled for such usage.
Federal Bank charges a 3.5% mark-up fee on international transactions. Additional fees may apply based on the type of transaction.
Charges include a mark-up fee, dynamic currency conversion fee, and ATM transaction fees. These fees vary based on the transaction type and location.
The mark-up fee is 3.5% for Visa, Mastercard, and Rupay debit cards. This fee is added to the transaction amount.
The dynamic currency conversion fee is 1% of the DCC transaction amount plus GST. This applies when you choose to pay in your home currency abroad.
Yes, there is a 2.50% surcharge on POS transactions at petrol pumps and railway stations. Alternatively, a minimum charge of INR 10 applies if the surcharge is lower.
Federal Bank charges INR 100 for financial transactions and INR 25 for non-financial transactions at other banks’ ATMs internationally.
Yes, holders of the Celesta scheme are exempt from international ATM transaction charges. This provides a cost-effective option for accessing funds abroad.
Magnetic stripe debit cards issued before December 1, 2013, have a limit of INR 30,000 per day for international usage across all channels.
Yes, it’s advisable to upgrade to an EMV chip-enabled card. These cards offer enhanced security and higher transaction limits for international use.
To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
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