Almost always, banks or in your case, ICICI will have a buy rate for the USD nearly higher than the current rate. Additionally, on top of this markup, there will be a GST. When you get a refund, they will refund you at the sell rate for the day you get it, which will always be lower than the current rate. Also, GST wont be refunded.
For example, if I buy item worth 100 USD today
1 USD to INR is ~70 INR
Amex will charge roughly a 3.5% markup. This comes to 72.45 + 0.5 GST which nearly equals 73 INR.
When refunded, you will get it for ~69.5- I got this rate from Canara bank site. No GST on this because its a refund (thank god)
So, you might buy 100 USD item for 7300 and get back 6950 only. Thats a loss of 350 INR!
Might be wrong, but others can chip in...
