This is very essential when traveling to other countries or buying items online that are priced in other currencies apart from your own because another thing that might be charged is the foreign transaction fee. This fee is also referred to as the forex markup fee and it is commonly levied for purchases made in a foreign currency or in a foreign country. In this article, let’s discuss what foreign transaction fees are and look at the best credit cards in India 2024 that don’t include this fee so you can be wise in spending your money when you travel overseas.
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What on the face is an FTT?
Forex markup fee or a foreign transaction fee is designed as the compliment taken by your bank when you make a purchase or a transaction in foreign currency or linked to an overseas account. This fee normally varies between 0% – 3%. Depending on the card issuer card, the merchant has to pay a fee of 5% of the transaction amount.
The foreign transaction fee applies to various types of transactions, including The foreign transaction fee applies to various types of transactions, including:
Retail purchases made abroad
- Any business performed through the internet and involving foreign exchange.
- Overseas Utilization of ATM, and Counter Facilities.
- Currently, these POS terminals allow transactions within India associated with POS terminals in a foreign country.
- It is therefore important for a student to understand how these fees are charged to manage his expenses aptly.
Continued from above: An example of Foreign Transaction Fee Calculation is as shown below;
For instance, you use your credit card to buy something worth Rs 10,000 but in a foreign currency and the credit card charges you a 3% foreign transaction fee. Here you have to pay an additional amount of Rs 300 as a markup fee along with 18% GST on the fee will be Rs 354 extra. To make sure that I do not incur such charges it will be wise if I get a credit card with low or no Foreign transaction fee.
The Banking/credit cards With the Least Foreign Transaction Fee in India in 2024
Below is the list of popular credit cards in India which either charge no foreign transaction fee or forex markup fees in the year 2024:
HDFC Bank Regalia ForexPlus Credit Card’s new feature is offering the customers an Additional Convenience of Wire Transfer.
Joining Fee: Cost: Rs 1,000 plus GST.
Key Features: With the ability to load the card in US dollars, the card can be used in cross-border transactions across numerous institutions without being charged any cross-currency costs. It also has up to 8 airport lounge visits in a year for free.
IDFC First Wow Credit Card is a new venture into the Credit cards Portfolio of IDFC Bank.
Reward Points: Get 1 reward point for every Rs 150 spent without using the same for the purchase of fuel, EMI transactions, or cash withdrawals. The other cost which includes the forex conversion fee is not incurred when using the card hence making it reasonable in the conduct of international business.
Federal Bank and Scapia Co-branded Credit Card
Key Benefits: They don’t require any joining or renewal fees, and one can access domestic airport lounges for free with a minimum spending of Rs 5000 per card, Credit cards do not apply any markup on forex transactions made internationally. Also, earn Scapia coins on qualifiable expenses and travel bookings through the Scapia App available for download.
Axis Burgundy Private is a Credit Card
Welcome Offer: 30,000 EDGE REWARD points after the first transaction.
Key Features: It has no cash withdrawal charges, no interest on the amount until the payment due date, and no forex markup on international transactions which makes it appealing for clients who travel frequently.
RBL World Safari Credit Card is a credit card in India that adds value to customers on their international traveling.
Travel Benefits: Getting up to Rs. 2,500 cashback, you will be able to receive 10 thousand travel points for using the application for the second time and paying Rs. 2. 15 thousand ‘membership year,’ they are permitted to borrow up to 500,000 rupees. Other incentives include 3750 travel points for making expenses of 500000 Rs per year and 10000 gift cards for making expenditures of 700000 Rs. 5 lakh. Other wonderful benefits of this card also include a 0% forex markup fee as well as being able to access two domestic airport lounges per quarter.
Conclusion
There are credit cards for international transactions that you can apply for that do not charge any foreign transaction fee hence saving you the cost. As we have seen above, the credit cards listed above are very useful when traveling abroad or making purchases online in foreign currencies since they do not attract any forex markup charges. When applying for credit cards pay close attention to each card’s offering and its conditions to identify the credit card that best suits your requirements.
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