Foreign Transaction Fee on Credit Cards - Compare & Save on Forex Charges

Updated: 15-10-2025 13:43:01 PM

Travellers who often visit foreign countries can use their credit card to make international payments. Credit card payments are much more secure than cash or travellers cheques. This security and convenience come at a price which is known as a foreign transaction fee. Whenever you conduct a transaction overseas, banks and credit card networks charge a fee to convert the denominations. The fee ranges from Nil to 3.5% across credit cards. Usually, premium credit cards with high annual fee offer a low forex markup fee, but this may vary from one issuer to another. Please see below for more details on low or zero forex markup credit cards.

When is Foreign Transaction Fee on Credit Cards Applicable?

How Do Foreign Transaction Fees Work?

Top Credit Cards with Lowest Forex Transaction Fee

Other Charges applicable to Foreign Transactions

How much do you save with lowest forex markup fee credit cards?

FAQs

When is Foreign Transaction Fee on Credit Cards Applicable?

A foreign transaction fee is applied in the following situations:

Retail transactions made outside of India
Online transactions made in a foreign currency
ATM cash withdrawals made overseas
Transactions made in India where the POS machine is linked to an overseas account like those at Duty-Free shops
Any other transaction made in foreign currency

Suggested Read: Best Credit Cards for International Travel

How Do Foreign Transaction Fees Work?

From a bank’s perspective, you can conduct only two types of foreign transactions namely:

Foreign Transactions in United States Dollar
Foreign Transaction in any other currency

Foreign Transactions made in United States Dollar

When you conduct a transaction in USD, your Indian credit card first converts the amount into Indian Rupee. They then apply the foreign transaction mark-up fee on the amount. You will have to pay this amount as the Forex Mark-up Fee.

Foreign Transaction Fee Calculation

For example, if you purchased an item worth 100 USD and the exchange rate is 1 USD = INR 70. In this case, the payable amount in INR will be Rs. 7,000. Now if the foreign exchange mark-up fee is 3.5%, it will be Rs. 245 (3.5% of 7,000). GST at 18% will also be applicable on the fee amount.

Foreign Transaction made in any Other Currency

In some cases, when you conduct a foreign transaction in any currency other than US dollars then the amount is first converted into US dollars. Afterwards, the usual process takes place and the amount is converted into Indian Rupees. The mark-up fee is applied at this juncture and the final amount shows up on the customer’s credit card statement.

Top Credit Cards with Lowest Forex Transaction Fee

Federal Bank Scapia Credit Card

3.5_/5

Joining fee: ₹0

Annual/Renewal Fee: ₹0

Up to 20% Scapia coins on your spends

Zero forex mark-up fee with unlimited access to domestic airport lounges

Travel

Lounge Access

Lifetime Free

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Product Details

20% Scapia coins on travel bookings made on Scapia app
10% Scapia coins on online & offline purchases, where 5 Scapia coins = Rs. 1
Lifetime-free credit card with zero forex mark-up fee
Unlimited domestic airport lounge access on spending min. Rs. 10,000 every month
Up to Rs. 1,000 off on spends at domestic airports on min. Rs. 10,000 monthly spends

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Ixigo AU Credit Card

3.5_/5

Joining fee: ₹0

Annual/Renewal Fee: ₹0

10% discount on travel bookings at Ixigo

Up to 10 reward points per Rs. 200 spent

Travel

Lifetime Free

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Product Details

10% discount on bus bookings, max. Rs. 300 once per month via Ixigo
10% discount on flight bookings, up to Rs. 1,000 once per month via Ixigo
10% off on hotel bookings, up to Rs. 1,000 once per month via Ixigo
Zero forex markup fee
16 free visits to domestic airport and railway lounges and 1 free visit to international airport lounge per year

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RBL World Safari Credit Card

3.5_/5

Joining fee: ₹3000

Annual/Renewal Fee: ₹3000

Zero forex markup fee

5 reward points per Rs. 100 on domestic & international travel spends

Travel

Rewards

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Product Details

10,000 reward points on spending Rs. 2.5 Lakh in a year
15,000 reward points on annual spends of Rs. 5 Lakh
Voucher worth Rs. 10,000 of top brands, including Taj Experiences, Amazon, Croma, Myntra & MakeMyTrip on annual spends of Rs. 7.5 Lakh
Fuel surcharge waiver up to Rs. 250 per month on fuel spends of Rs. 500 to Rs. 4000
1 complimentary golf lesson every month & 4 complimentary rounds of green fee every year

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IDFC FIRST Mayura Credit Card

3_/5

Joining fee: ₹5999

Annual/Renewal Fee: ₹5999

10X rewards on monthly spends above Rs. 20,000; 5X rewards below that

Up to 8 international, 16 domestic (+4 guest visits) lounge access per year

Travel

Lounge Access

Rewards

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1X rewards = 1 Reward Point per Rs. 150 spent
No forex mark-up fee; Reimbursement of up to Rs. 50,000 on flight/hotel booking cancellation, twice per year
Buy 1 and get up to Rs. 500 off on 2nd movie ticket on BookMyShow, twice per month
7,500 Reward Points on Rs. 8 lakh annual spends and 15,000 Reward Points on Rs. 15 lakh annual spends
Up to 2 golf rounds per month, 1st on Rs. 20,000 monthly spends and 2nd on Rs. 40,000 monthly spends

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Axis Bank Burgundy Private Credit Card

4_/5

Joining fee: ₹50000

Annual/Renewal Fee: ₹50000

Unlimited domestic & international airport lounge access

Complimentary EazyDiner Prime, Club Marriott, Accor Plus and Taj Epicure memberships

Travel

Premium

Rewards

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Product Details

Free EazyDiner Prime Membership for savings up to 25% at fine dining restaurants
50 complimentray golf rounds every year
Free ticket for every movie/non-movie ticket bought through BookMyShow, applicable 5 times for movies and 5 times for non-movie events
Complimentary concierge service for 8 airport visits
Complimentary Club Marriott, Accor Plus, and Taj Epicure memberships
Zero forex markup fee

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AU Zenith+ Credit Card

3.5_/5

Joining fee: ₹4999

Annual/Renewal Fee: ₹4999

2X reward points on travel, dining and international spends

16 complimentary international and domestic lounge access every year

Travel

Movies

Rewards

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Product Details

1 reward point for every Rs. 100 on retail spends
1,000 reward points on Rs. 75,000 monthly retail spends & Taj Epicure membership on Rs. 12 Lakh annual retail spends
16 complimentary international lounge visits in a year using Priority Pass & 16 complimentary domestic airport lounge access every year
16 complimentary B1G1 movie/event tickets from BookMyShow in a year
International travel benefits with a low forex markup fee of 0.99% and 4 end-to-end VIP airport check-in services per year
Low forex markup fee of 0.99%

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YES BANK Marquee Credit Card

4_/5

Joining fee: ₹9999

Annual/Renewal Fee: ₹4999

36 YES Rewardz Points per Rs. 200 spent online & 18 on offline spends

Up to 24 domestic & unlimited international airport lounge visits per year

Travel

Premium

Rewards

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Product Details

1% forex mark-up fee
Up to 12 complimentary golf lessons in a year & 4 green fee waivers at select golf courses in India
60,000 and 20,000 YES Rewardz Points on joining and renewal fee payments respectively
B1G1 offer with up to Rs. 800 off per BookMyShow movie ticket with max. 3 free tickets per month
Min. 15% off on dining via Dining Fiesta program

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IDFC FIRST Wealth Credit Card

3_/5

Joining fee: ₹0

Annual/Renewal Fee: ₹0

Up to 10x rewards on every spend

Up to 8 international & 8 domestic airport lounge & spa access in a year

Travel

Lifetime Free

Rewards

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Product Details

3x rewards on monthly spends of up to Rs. 20,000 and 10x rewards on spends after this spend threshold
1 reward point per Rs. 150 spent on insurance and utility; low forex mark-up fee of 1.5%
Buy 1 get 1 offer with up to Rs. 250 off twice a month on movie tickets on District by Zomato app
Complimentary golf round per Rs. 20,000 monthly spends, up to 2 rounds/month
5% cashback on 1st EMI transaction and Rs. 500 gift voucher as welcome benefit
Low forex mark-up of 1.5%

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SBI Card ELITE

3.5_/5

Joining fee: ₹4999

Annual/Renewal Fee: ₹4999

5X reward points on dining, grocery and departmental store spends

Complimentary Priority Pass membership

Lounge Access

Movies

Rewards

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Product Details

2 reward points per Rs. 100 spent on other categories
Up to 50,000 bonus reward points as milestone benefits
6 complimentary international lounge access in a year; 1.99% forex mark-up fee
Up to 8 complimentary domestic lounge access per year, 2 per quarter
Free movie tickets worth Rs. 6,000 in a year
Low forex mark-up fee of 1.99%

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HDFC Infinia Credit Card

4_/5

Joining fee: ₹12500

Annual/Renewal Fee: ₹12500

Unlimited airport lounge access for primary and add-on members

10x reward points on travel and shopping spends on Smartbuy

Travel

Premium

Rewards

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Product Details

1 RP = 1 Air Mile or Rs. 1 for travel bookings, Apple products and Tanishq vouchers purchased via SmartBuy
Invite-only card with Club Marriott membership and 12,500 reward points on card activation & renewal
5 reward points on every Rs. 150 spent, including spends on insurance, utilities and education
Access to unlimited golf games and lessons across premium golf courses worldwide
Book 3 nights stay at participating ITC hotels and pay for 2 with 1+1 complimentary weekend buffet
Low forex mark-up fee of 2%

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ICICI Emeralde Private Metal Credit Card

4_/5

Joining fee: ₹12499

Annual/Renewal Fee: ₹12499

Taj Epicure & EazyDiner Prime memberships

Unlimited airport lounge visits

Travel

Premium

Rewards

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Product Details

Rs. 3,000 EaseMyTrip vouchers on reaching each annual spending milestone of Rs. 4 Lakh and Rs. 8 Lakh
Unlimited golf lessons or rounds every month on creating a Golftripz account
EazyDiner membership, up to 50% off on dining in India & Dubai; 2,000 EazyPoints on joining
Buy 1 ticket and get up to Rs. 750 off on the 2nd ticket on BookMyShow bookings, twice a month
1% fuel surcharge waiver of up to Rs. 1,000 per month on fuel transactions below Rs. 4,000
Low forex markup fee of 2%

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HDFC Regalia Credit Card

3_/5

Joining fee: ₹2500

Annual/Renewal Fee: ₹2500

4 reward points per Rs. 150 spent on all retail spends

Up to 15,000 bonus reward points as milestone benefit

Travel

Shopping

Rewards

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Product Details

Low forex markup fee of 2%
10,000 rewards on Rs. 5 lakh annual spends & 5,000 rewards on Rs. 8 lakh annual spends
Up to 20% off on dining via Swiggy Dineout
Insurance cover for air accident death, lost card liability & emergency overseas hospitalisation
1% fuel surcharge waiver up to Rs. 500 per month for fuel spends of Rs. 400 to Rs. 5,000

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Axis Magnus Credit Card

3.5_/5

Joining fee: ₹12500

Annual/Renewal Fee: ₹12500

Unlimited international & domestic lounge visits with 4 additional guest visits

Up to 60 EDGE reward points per Rs. 200

Travel

Premium

Rewards

Check Eligibility

Product Details

Low forex mark-up fee of 2%
Conversion of rewards into Air Miles or Hotel Loyalty points (5:2)
Luxe gift card/ The Postcard Hotels/ Yatra voucher worth Rs. 12,500 on making the first transaction within 30 days from card issuance

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Other Charges applicable to Foreign Transactions

You may incur the following credit card charges when conducting international transactions. Note that these charges are not necessarily applicable; they are subject to the situations as mentioned below.

Tax – Goods & Service Tax (GST) will be applicable on all the fees and charges that your international transactions incur. It is currently at 18%.

Cash Withdrawal Fee – Cash withdrawals done overseas like any domestic withdrawals will incur this fee. The minimum amount can range from Rs. 100 to Rs. 300 and maybe more.

Finance Charges – If you withdraw money or fail to clear your dues by the due date, then finance charges will be applied. The rate can be anywhere between 23% and 42%, may vary across card type and issuers.

Suggested Read: Forex Cards vs Credit Cards – Which is Better for International Travel?

How much do you save with lowest forex markup fee credit cards?

FAQs

Do all monetary instruments charge a mark-up fee on overseas transactions?
No, cash transactions, traveller’s cheques, Forex cards and certain credit cards do not charge a mark-up fee.

Which is better Cash, credit card or travellers’ cheque?
Amongst the three, a credit card is the best monetary instrument for international travel. This is especially true if the card charges 0% currency conversion fee. They also keep your finances secure. Meaning you can cancel/dispute a transaction later on. This facility is not provided by the other two means. Also, cash & travellers’ cheque can be easily misplaced or stolen. Though, you get a small window of time to cancel travellers’ cheques. Travellers’ cheques also require that you pay a commission fee to get them and use them. They are also prepaid.

How can I find out how much am I charged on foreign transaction fee?
At the time of credit card application, you were handed a Most Important Terms & Conditions handbook. You can find the rate under Foreign Currency Transactions fee. You may also contact the credit card provider to know the foreign transaction fee.

Will Finance charges be applicable if I do not pay the foreign transaction amount?
If you fail to pay your whole bill regardless of its contents by the due date then finance charges will be applied.

Is there a credit limit on international spends?
Credit card providers don’t usually set a separate international spend limit. However, some banks allow users to set an international spend limit. You also have the option to activate or deactivate international spends.

What is a foreign transaction fee?
A foreign transaction fee, also known as a forex markup fee, is charged by your bank or card issuer when you make a payment in a foreign currency or through an international merchant.

How to avoid foreign transaction fees?
You can avoid foreign transaction fees by using credit card that offer zero forex markup or no foreign transaction charges. Always choose to pay in the local currency instead of INR to prevent extra costs due to dynamic currency conversion.

Can I avoid foreign transaction fees by paying in INR?
Paying in INR abroad usually does not help you avoid foreign transaction fees. In fact, merchants often apply dynamic currency conversion (DCC), which converts the amount to INR at a poor exchange rate and may include extra markups. Therefore, you may end up paying more even though the transaction is in INR.

Do foreign transaction fees apply to online purchases from international websites?
Yes, foreign transaction fees can apply even to online purchases if the merchant is based overseas or charges in a foreign currency. Even if you are shopping from India, your bank may treat the payment as an international transaction and levy the applicable forex markup fee.

Which credit cards in India do not charge foreign transaction fees?
Some of the popular options include Federal Scapia, Ixigo AU, RBL Bank World Safari, and IDFC FIRST Mayura Credit Card. These cards are ideal for frequent travellers who wish to save on international spends.

Is it better to use a credit card or a forex card abroad?
Both options have their benefits. A credit card with no foreign transaction fees is convenient and offers better fraud protection, while a forex card lets you load foreign currency in advance at locked-in exchange rates. If your credit card offers zero forex markup, it can be as cost-effective as a forex card, with added convenience and security.

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Foreign Transaction Fee On Credit Cards Explained

When is Foreign Transaction Fee on Credit Cards Applicable?

How Do Foreign Transaction Fees Work?

Foreign Transactions made in United States Dollar

Foreign Transaction made in any Other Currency

Top Credit Cards with Lowest Forex Transaction Fee

Other Charges applicable to Foreign Transactions

How much do you save with lowest forex markup fee credit cards?

FAQs

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