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ToggleIf you are planning to travel abroad and want to issue a credit card for the same, you must be aware of a fee that banks charge on foreign currency transactions. It is known as a foreign transaction fee or forex markup fee. It is charged on every foreign currency transaction you do using your credit card. However, not all banks charge this fee. In this article, let’s understand what a foreign transaction fee is and which credit cards do not have a foreign transaction fee in India.
A foreign transaction fee or foreign markup fee is a charge that banks levy when you use your credit and debit cards for international transactions. The fee typically ranges between 0% to 3.5% and varies across banks.
It is applicable to retail transactions made outside India, online transactions made in foreign currency, cash withdrawals from ATMs overseas, transactions made in India where the point of sales (POS) is linked to an overseas account, and any other foreign currency transaction.
Let’s understand how the foreign transaction fee is calculated with the help of an example. Suppose you spent Rs 10,000 worth in foreign currency, and the foreign transaction fee is 3%. Then you will have to pay Rs 300 as a markup fee and 18% as GST which will amount to Rs 354. The higher the markup fee, the higher your expense will be. Hence, it is best to choose cards with low or zero markup fees.
When you use your credit card for international expenses, you might incur the following expenses apart from the foreign transaction fee. The following expenses are not mandatory and are only applicable in certain situations.
Goods and Service Tax (GST) is applicable on all kinds of fees levied by the bank.
If you withdraw cash overseas at an ATM, you will be charged a cash withdrawal fee. This fee is either a fixed amount or a percentage of the withdrawn amount.
If you withdraw money or don’t pay your credit card dues on time, the bank will charge you interest. This interest typically ranges from 30%-45% per annum.
Whenever you use an Indian credit card for a foreign currency transaction, banks also levy a currency conversion fee. This ranges between 3%-5% of the transaction value and is levied on the settlement date and not on the transaction date.
From a bank’s perspective, a foreign transaction is done only using USD or any other currency.
In the case of USD, the Indian credit card first converts the amount into Indian currency, and then the foreign markup fee is levied.
In case you spend in terms of other currency, first, the amount is converted into USD and then into Indian currency. The foreign markup is then levied, which you must pay to the bank while clearing your credit card dues.
The Indian market has many credit cards that do not charge a foreign transaction fee. The following credit cards are just some of the few cards that do not charge a foreign transaction fee.
Credit Card | Joining Fees | Lifetime Free | Annual Fee Waiver Amount | Welcome Benefits | Cashback Features | Rewards | Other Features |
Scapia Federal Bank Credit Card | Nil | Yes | NA | NA | NA | 20 Scapia coins on travel spends of Rs 100
10 Scapia coins on other spends of Rs 100 |
Unlimited lounge access if monthly spends cross Rs 5,000 |
Axis Bank Burgundy Private Credit Card | NA | No | No | 30,000 EDGE points on the first transaction | NA | 15 EDGE points for every Rs 200 spent on the card | Unlimited lounge access at domestic and international airports with an add-on priority pass for 12 guest visits.
Flexibility to increase credit limit during travel. Unlimited lounge access at domestic and international airports with an add-on priority pass for 12 guest visits. Up to 15% off at The Postcard Hotels Global travel and medical assistance during international travel 24×7 concierge services Fuel surcharge waiver of 1% Personalised assistance for your styling and shopping needs Travel insurance for loss/delay in baggage Credit shield and purchase protection |
RBL World Safari Credit Card | Rs 3,000 | No | No | Welcome voucher of Rs 3,000 from MakeMyTrip | NA | For every Rs 100 spent on travel, earn five travel points, and for other expenses, earn two travel points
Get 10,000 travel points if annual expenses exceed Rs 2.5 lakhs and 15,000 travel points if expenses exceed Rs 5 lakhs |
Complimentary lounge access at domestic and international lounges
Travel insurance covering personal liability coverage, trip delays, baggage loss, dental treatment, and loss of passport Complimentary golf rounds and no-cost golf lessons Other benefits include 24*7 concierge services and a fuel surcharge waiver |
Club Vistara IndusInd Explorer Credit Card | Rs 40,000 | No | No | Club Vistara Gold Membership
Complimentary business class ticket voucher worth Rs 25,000 Gift cards from Luxe, Oberoi, and Vouchagram |
NA | Get 8 Club Vistara points per Rs 200 spent on website, 6 points for travel, 2 points on other spends, and 1 point for utility bills | Complimentary domestic and international airport lounge access
Travel insurance up to Rs 1 lakh for lost baggage, delayed baggage, loss of passport, lost ticket, and missed flight connection 20% off on BookMyShow on events, and theater bookings Buy One Get One offer on movie tickets, up to 2 a month Get up to 5 business class tickets per year upon spending Rs 3 lakhs to Rs 15 lakhs per annum |
IDFC First Wow Credit Card | Nil | Yes | NA | NA | 5% cashback on purchases up to Rs.1,000 on first EMI transaction | 4x rewards on all spends | Shopping offers worth 20% across 300 merchants and 1500 restaurants
Roadside assistance worth Rs 1,399 up to 4 times a year Personal accident cover of Rs.2 lakhs and lost card liability cover worth Rs.25,000 |
The Federal Scapia Card is a credit card launched in collaboration with Federal Bank. Scapia is a travel platform that helps in travel bookings. The Federal Scapia Card is for frequent travellers and shoppers and offers the following benefits and features.
The Axis Burgundy Private Credit Card is for high-net-worth individuals and is designed to meet their requirements. The following are its features and benefits.
The RBL World Safari Credit Card is a travel credit card that offers unique benefits and features at low costs. The following are the features and benefits of the card.
The Club Vistara IndusInd Explorer Credit Card is exclusively for frequent travellers. The following are the features and benefits of the card.
IDFC First Wow Credit Card is a travel card that offers the following features and benefits.
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Although there are zero forex credit cards, there are credit cards that give more rewards than the forex charges. The following are some of the best credit cards with rewards higher than foreign transaction fees.
Credit Card | Joining Fees | Lifetime Free | Annual Fee Waiver Amount | Welcome Benefits | Cashback Features | Rewards | Other Features |
HDFC Infinia Credit Card | Rs 12,500 | No | No | Complimentary Club Marriot membership for a year
12,500 reward points upon activation |
NA | Five reward points for every Rs 150 spent on the card | Unlimited airport lounge access across the globe for primary and add-on member
Complimentary nights buffet at participating ITC hotels Book for three night’s stay at ITC hotels, and pay for two Unlimited Complimentary golf games at leading courses 24*7 concierge services 1% fuel surcharge wavier Accidental air death cover worth Rs 3 crore |
Axis Reserve Credit Card | Rs 50,000 | No | No | Taj Experience E-Gift card, club Vistara Gold membership, and Zomato pro membership for free
Receive 50,000 reward points upon card activation |
NA | 15 EDGE reward points for every Rs 200 spent
2x rewards on international expenditures |
Unlimited airport lounge access at domestic and international airports with 12 complimentary visits for guests
8 VIP assistance services up to 8 times a year with a seamless airport experience Accroplus membership with complimentary night stay across the Asia-Pacific region, complimentary room upgrades, and 50% off on dining Exclusive offers at Oberoi Hotels and Resorts, including 15%-50% savings on rooms and suites Lost card liability up to credit limit, purchase protection of Rs 2 lakhs, coverage for loss and delay in baggage up to USD 500, credit shield of Rs 5 lakhs, and air accident coverage of Rs 45 lakhs |
Tata Neu Infinity HDFC Bank Credit Card | Rs 1,499 | No | Yes, provided annual spending exceed Rs 3 lakhs | 1,499 NeuCoins. | NA | 5% NeuCoins at partner Tata online and in-store purchases
5% NeuCoins on bill payments and recharges through Tata Neu. 1.5% on NeuCoins on other spends. |
Complimentary lounge access at domestic and international airports
1% fuel surcharge wavier |
HDFC Diners Club Black Credit Card | Rs 10,000 | No | Yes, if annual spend exceeds Rs 5 lakhs | Complimentary yearly subscription to Forbes, Club Mahindra, Times Prime, MakeMyTrip Black, Amazon Prime and Swiggy One on spending Rs 1.5 lakhs | NA | 2x rewards on weekend dining
5x on Rs 150 spent on retail 10x reward points for spending on SmartBuy |
Unlimited airport lounge access in India and abroad
25% discount on all restaurant bill payments done through Swiggy Dineout Air accident insurance of Rs 2 crore, travel insurance of Rs 55,000, emergency overseas hospitalisation of Rs 50 lakhs, and credit liability cover of Rs 9 lakhs |
Bank of Baroda Eterna Credit Card | Rs 2,499 | No | Yes, if annual spend exceeds Rs 2.5 lakhs | Complimentary six months FitPass pro membership worth Rs 15,000 | NA | 15 reward points for every Rs 100 spent on travel, international spending, dining, and movies
Three reward points for every Rs 100 spent on other categories 1.5 reward points for every Rs 100 spent on select merchants |
Unlimited complimentary lounge access at domestic airports
Buy One Get One free ticket on bookings done on Paytm Movies Exclusive access and deals at 250+ restaurants Earn milestone rewards of 10,000 bonus points for Rs 50,000 spent in the first 60 days, and 20,000 reward points for every Rs 5 lakh spent in a year Fuel surcharge waiver of 1% Personal accidental death cover Zero liability on lost card |
Fi Credit Card | Rs 2,000 | No | Yes, if annual spend exceeds Rs 2.5 lakhs | Rs 5,000 worth of vouchers gift cards from Zomato, Myntra, and Uber, or 50,000 Fi coins | NA | 5x rewards on top 3 brands with the most spends
2x rewards on 20+ brands 1x reward on fuel and rent |
Complimentary lounge access at domestic airports
Milestone benefits vouchers worth Rs 2,500, Premium Jio Cinema annual membership, along with annual fee waiver, two Vistara class upgrades, two priority check-ins, and ET Prime membership |
AU Zenith Credit Card | Rs 7,999 | No | Yes, if annual spend exceeds Rs 5 lakhs | Vouchers worth Rs 1,000 on first transaction and 10,000 bonus rewards on spending worth Rs 1 lakh within 60 day | NA | 20 reward points per Rs 100 spent on dining
Ten reward points on international transactions, grocery, and department stores Five reward points on other merchant categories One reward point on utility and telecom categories |
Milestone benefits worth Rs 1,000 every quarter upon spending Rs 2 lakhs, and complimentary Epicure membership upon spending Rs 8 lakhs in a year
bonus rewards of 2,500 points upon spending on your birthday Complimentary airport and railway lounge access 24*7 concierge services 1% fuel surcharge waiver Comprehensive protection cover including air accident cover, card liability cover, credit shield, purchase protection, and other travel-related covers |
HDFC Regalia Gold Credit Card | Rs 2,500 | No | Yes, if annual spend exceeds Rs 4 lakhs | Complimentary Club Vistara Silver Tier and MMT Black Elite Membership when you spend Rs. 1 Lakhs and above within 90 days of card issuance | NA | 20 reward points on spends at Marks & Spencer, Myntra, Nykaa, Reliance Digital
Four reward points on other brands and categories for every Rs.150 spent |
Rs 1,500 worth of vouchers on quarterly spends of Rs. 1.5 lakh, 5,000 worth of flight vouchers on annual spends of Rs. 5 lakh and an additional voucher of Rs. 5000 on spends of Rs. 7.5 lakhs
Complimentary lounge access at over 1000 airports 24*7 concierge services Get up to 20% savings on all restaurant bill payments done via Swiggy Dineout Zero lost card liability, accidental air death cover, emergency overseas hospitalisation, and credit liability cover |
The HDFC Infinia Credit Card is a travel credit offering a wide range of benefits.
Axis Reserve Credit Card is a premium card that offers best-in-class privileges to its users across travel, wellness, and entertainment segments.
Tata Neu Infinity HDFC Credit Card is a shopping/rewards card and offers the following benefits.
The HDFC Bank Diners Club Black Credit Card offers a range of benefits across travel, dining, and golf. It offers the following features and benefits to the users.
The Bank of Baroda Eterna Credit Card gives exclusive lifestyle and travel benefits.
Fi credit card was launched in collaboration with Federal Bank. The following are the features and benefits of the card.
The AU Zenith Credit Card is a premium credit card that offers a range of benefits that let you travel in luxury. The following are the features and benefits of the card.
The HDFC Regalia Gold Credit Card best suits frequent travellers. It offers the following features and benefits.
Credit cards are a useful financial tool when travelling abroad. They can help you get free lounge access and also accumulate rewards on all your international spending. However, before using it, it is important to keep the following in mind.
No, not all credit cards charge a foreign transaction. There are a few cards that charge a zero markup fee.
There are five cards that do not charge a foreign transaction fee. They are the Scapia Federal Bank Credit Card, Axis Bank Burgundy Private Credit Card, RBL World Safari Credit Card, Club Vistara IndusInd Explorer Credit Card, and IDFC First Wow Credit Card.
You can check your card’s terms and conditions, including the different kinds of fees it charges, in the factsheet or terms and conditions sheet. You can find this on the card issuer’s website.
If a credit card is charging a 3% foreign transaction fee, it means your bank will charge an additional 3% from you when billing your credit card dues. For example, if you use Rs 10,000 for a foreign currency transaction, then the bank will charge you an additional Rs 300 for the foreign currency transaction you did using the credit card. Hence, the credit card statement will reflect the amount of Rs 10,300 instead of Rs 10,000.
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