No Foreign Transaction Fee Credit Card in India – 2024

If 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.

What is a Foreign Transaction Fee?

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.

Other Expenses Involved in Using a Credit Card for International Expenses

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.

• Tax: Goods and Service Tax (GST) is applicable on all kinds of fees levied by the bank.
• Cash withdrawal fee: 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 This fee is either a fixed amount or a percentage of the withdrawn amount.
• Finance charges: 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.
• Currency conversion fee: 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.

What Happens When a Foreign Transaction Is Done Using an Indian Credit Card?

From a bank’s perspective, a foreign transaction is done only using USD or any other currency.

• US Dollar: In the case of USD, the Indian credit card first converts the amount into Indian currency, and then the foreign markup fee is levied.
• On other currency: 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.

Best No Foreign Transaction Fee Credit Card in India

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.

#1 Federal Scapia Card

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 card charges a 0% foreign markup fee when used for international spending.
• Get 10 Scapia coins for every Rs 100 spent and 20 Scapia coins for every Rs 100 spent on travel spent on the Scapia App.
• It offers unlimited lounge access to the users upon spending a minimum of Rs 5,000 every month.
• The card is lifetime free, so there are no joining fees or annual renewal fees charged to users.

#2 Axis Bank Burgundy Private Credit Card

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.

• No forex markup fee is levied on international transactions. No cash withdrawal charges and interest will be levied till the due date.
• Welcome benefits of 30,000 EDGE points on the first transaction.
• Flexibility to increase credit limit during travel.
• 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.
• Up to 15% off at The Postcard Hotels.
• 50 complimentary gold rounds per year.
• 5 movie and non-movie complimentary tickets per month.
• Complimentary EazyDiner Prime membership that can help save up to 25% at select fine dining restaurants.
• Global travel and medical assistance during international travel.
• Complimentary hotel and dining membership at Club Marriott, Accor Plus and Taj Epicure.
• Other benefits include 24×7 concierge services, a fuel surcharge waiver of 1%, personalised assistance for your styling and shopping needs, travel insurance for loss/delay in baggage, a credit shield, and purchase protection.
• Joining fee: NIL; however, it is important to maintain a net relationship value (NRV) of a minimum of Rs 5 crores with Axis Bank to get this card.
• Annual fee: Rs 10,000 if NRV criteria are met, else Rs 50,000.

#3 RBL World Safari Credit Card

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.

• A welcome voucher of Rs 3,000 from MakeMyTrip is available if you use the card within one month of issuance.
• 0% markup fee on international transactions. However, there are no reward points for international purchases.
• 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 covers 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.
• Joining fee and annual fee: Rs 3,000

#4 Club Vistara IndusInd Explorer Credit Card

The Club Vistara IndusInd Explorer Credit Card is exclusively for frequent travellers. The following are the features and benefits of the card.

• Attractive welcome benefits: Club Vistara Gold Membership, complimentary business class ticket voucher worth Rs 25,000, Luxe gift card, Oberoi gift card, and Vouchagram gift card.
• No foreign markup fee, no late payment fee, no over-limit fee, and no cash advance or withdrawal charges.
• 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.
• Get 8 Club Vistara points per Rs 200 spent on the website, 6 points for travel, 2 points on other spends, and 1 point for utility bills.
• 20% off on BookMyShow on events and theatre 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.
• Joining fees: Rs 40,000
• Annual fee: Rs 10,000

#5 IDFC First Wow Credit Card

IDFC First Wow Credit Card is a travel card that offers the following features and benefits.

• Zero forex markup fee, zero interest on ATM Cash withdrawals, and lifetime free card.
• Shopping offers worth 20% across 300 merchants and 1500 restaurants.
• Get 4x rewards on all spends.
• 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.
• Get 5% cashback on purchases up to Rs.1,000 on the first EMI transaction.
• Joining fee and annual fee: Nil
• Eligibility: IDFC First Wow Credit Card is issued only against a fixed deposit of Rs 5,000. The credit limit is equal to the FD amount.

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Other Best Credit Cards with Foreign Transaction Fees in India

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.

#1 HDFC Infinia Credit Card

The HDFC Infinia Credit Card is a travel credit offering a wide range of benefits.

• Forex markup fees are 2%, one of the lowest in the industry.
• Welcome benefits include a complimentary Club Marriot membership for a year and 12,500 reward points upon activation.
• Get five reward points for every Rs 150 spent on the card.
• Unlimited airport lounge access across the globe for primary and add-on members.
• Complimentary nights and buffet at participating ITC hotels.
• Book a night stay at ITC hotels and pay for two.
• Unlimited Complimentary golf games at leading courses.
• 24*7 concierge services.
• 1% fuel surcharge waiver.
• Accidental air death cover worth Rs 3 crore.
• Joining fee and annual fee: Rs 12,500
• Eligibility: Invite only credit card

#2 Axis Reserve Credit Card

Axis Reserve Credit Card is a premium card that offers best-in-class privileges to its users across travel, wellness, and entertainment segments.

• Foreign markup fees of 1.5%.
• Gives welcome business of Taj Experience E-Gift card, club Vistara Gold membership, and Zomato pro membership for free. Also, receive 50,000 reward points upon card activation.
• Offers 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 seamless airport experience.
•  Earn 15 EDGE reward points for every Rs 200 spent and 2x rewards on international expenditures.
• Get 50% off room tariffs for suites on weekends and 25% green points on food and beverage expenses.
• Get an Accroplus membership with a complimentary night stay across the Asia-Pacific region, complimentary room upgrades, and 50% off on dining.
• Complimentary lunch buffets at Accor Hotels in India.
• Exclusive offers at Oberoi Hotels and Resorts, including 15%-50% savings on rooms and suites.
• Fifty complimentary golf rounds per annum at the finest golf courses in India.
• Get a 1% fuel surcharge waiver.
• Other benefits include 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.
• Joining and annual fee Rs 50,000.
• Eligibility:
  • Income: Above Rs 18 lakhs per annum

#3 Tata Neu Infinity HDFC Bank Credit Card

Tata Neu Infinity HDFC Credit Card is a shopping/rewards card and offers the following benefits.

• Forex markup fee of 1%.
• 10% NeuCoins on Tata neu
• 5% NeuCoins at partner Tata online and in-store purchases, including BigBasket, Croma, Tata 1 mg, Air Asia, Tata CliQ, Taj Hotels, Cult, Titan and Tanishq.
• 5% NeuCoins on bill payments and recharges through Tata Neu.
• 1.5% on NeuCoins on other spends.
• Redeem NeuCoins for purchases at partner brands.
• Eight complimentary lounge access (2 per quarter) at domestic airports and one international lounge access per year.
• 1% fuel surcharge waiver.
• Welcome the benefit of 1,499 NeuCoins.
• Renewal fee waiver on annual spending above Rs 3 lakhs in the previous year.

#4 HDFC Diners Club Black Credit Card

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.

• Forex markup fee is 2%.
• Gives a welcome bonus of a complimentary yearly subscription to Forbes, Club Mahindra, Times Prime, MakeMyTrip Black, Amazon Prime and Swiggy One on spending Rs 1.5 lakhs in the first 90 days. These memberships will be renewed if the cardholder spends Rs 8 lakhs per annum.
• Unlimited airport lounge access in India and abroad.
• Earns 2x rewards on weekend dining, 5x on Rs 150 spent on retail, and 10x reward points for spending on SmartBuy.
• Get a 25% discount on all restaurant bill payments done through Swiggy Dineout.
• Other benefits include 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.
• Get a 1% fuel surcharge waiver at all fuel stations across India.
• The joining fee and annual fee is Rs 10,000. The annual fee will be waived if the expenditure exceeds Rs 5 lakhs.
• Eligibility:
  • Age: Between 21 years and 70 years
  • Income: It should be above Rs 1.75 lakhs per month for salaried individuals and Rs 21 lakhs per annum for self-employed individuals.

#5 Bank of Baroda Eterna Credit Card

The Bank of Baroda Eterna Credit Card gives exclusive lifestyle and travel benefits.

• Forex markup fee of 2%.
• Complimentary six-month FitPass pro membership worth Rs 15,000 as a welcome gift.
• Fifteen reward points for every Rs 100 spent on travel, international spending, dining, and movies.
• 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.
• Three reward points for every Rs 100 spent on other categories, and 1.5 reward points for every Rs 100 spent on select merchants.
• 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%.
• Other benefits include personal accidental death cover, zero liability on lost cards,
• Joining fee and annual fee: Rs 2,499
• The joining fee is waived if Rs 25,000 is spent within the first 60 days, and the annual fee is waived if Rs 2.5 lakhs are spent within a year.
• Eligibility:
  • Age: Between 21 and 65 years old
  • Income: Minimum of Rs 12 lakhs

#6 Fi Credit Card

Fi credit card was launched in collaboration with Federal Bank. The following are the features and benefits of the card.

• The card charges a forex markup fee of 1%.
• Welcome benefits worth Rs 5,000 in the form of vouchers and gift cards from Zomato, Myntra, and Uber, or 50,000 Fi coins.
• Get 5x rewards on the top 3 brands with the most spending, 2x rewards on 20+ brands, and 1x reward on fuel and rent.
• Complimentary lounge access at domestic airports.
• If annual expenses exceed Rs 2.5 lakhs, you will get vouchers worth Rs 2,500, Premium Jio Cinema annual membership, and an annual fee waiver.
• If annual expenses exceed Rs 4 lakhs, you will get benefits worth Rs 8,000, including two Vistara class upgrades, two priority check-ins, and an ET Prime membership.
• Joining fee: Rs 2,000
• Annual fee: Rs 2,000, waived off if spending exceeds Rs 2.5 lakhs.

#7 AU Zenith Credit 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.

• Forex markup fee of just 1.99%.
• Get vouchers worth Rs 1,000 on the first transaction and 10,000 bonus rewards on spending worth Rs 1 lakh within 60 days.
• Twenty 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, and 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.
• Enjoy 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 includes air accident cover, card liability cover, credit shield, purchase protection, and other travel-related covers.
• Joining fee: Rs 7,999
• Annual fee: Waived if annual spending exceeds Rs 1.25 lakhs in the first 90 days and Rs 5 lakhs in a calendar year.
• Eligibility:
  • Age: 21-60 years

#8 HDFC Regalia Gold Credit Card

The HDFC Regalia Gold Credit Card best suits frequent travellers. It offers the following features and benefits.

• Low forex markup fee of 2%.
• Welcome benefits: complimentary Club Vistara Silver Tier and MMT Black Elite Membership when you spend Rs. 1 Lakhs and above within 90 days of card issuance.
• Twenty reward points on spends at Marks & Spencer, Myntra, Nykaa, and Reliance Digital, and four reward points on other brands and categories for every Rs.150 spent.
• Complimentary lounge access at over 1000 airports.
• Milestone benefits: Rs 1,500 worth of vouchers on quarterly spending 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.
• 24*7 concierge services.
• Get up to 20% savings on all restaurant bill payments done via Swiggy Dineout.
• Other benefits include zero lost card liability, accidental air death cover, emergency overseas hospitalisation, and credit liability cover.
• Joining fee: Rs 2,500.
• Annual fee waiver: if Rs 4 lakhs is spent a year.
• Eligibility:
  • Age: 21-65 years
  • Income: Higher than Rs 1 lakh per month

Things to Keep in Mind Before Applying for a Credit Card for a Trip Abroad

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.

• Check the foreign transaction fee of the credit card you hold before using it to avoid any surprises later.
• If you are taking a credit card for the purpose of travelling abroad, check and compare the foreign transaction fee and other rewards. Choose the one with the lowest fee and high rewards.
• If you want to choose a zero forex markup fee card, then make sure you check the terms and conditions of using it. Most zero foreign transaction fee cards have certain conditions that restrict the card usage.
• A foreign currency conversion fee is levied irrespective of the markup fee. Hence, make sure you understand the conversion charges before using it.

Frequently Asked Questions

Do all credit cards charge foreign transaction fees?

No, not all credit cards charge a foreign transaction. There are a few cards that charge a zero markup fee.

What credit cards do not charge a foreign 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.

How do I know if my credit card has foreign transaction fees?

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.

What is a 3% foreign transaction fee?

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.