If you're a frequent international traveller, chances are that you prefer credit cards to make international transactions. However, using a domestic card, especially a credit card is a costly affair. Read on to learn about some credit cards with no foreign transaction fees.
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Absolutely! Since there’s a limit on cash that we can carry abroad, more and more credit card issuers are offering attractive schemes to people. Those who want a credit card for their trip abroad or simply make international payments online can opt for these cards.
However, most of these credit cards have some price attached to them. These costs should be considered before selecting any card as they can amount to a considerable sum.
Every time you make a payment abroad, your bank and credit card network charges a fee towards this conversion. This fee is called a foreign transaction fee on credit cards.
For most credit card networks such as MasterCard and Visa, this fee is usually 1% of the transaction amount. Credit card issuers may charge anywhere between 1% and 2.5% as their mark-up fee.
With so many options available, many people go for credit cards for hassle-free payments while they’re abroad. Most credit cards available in India have some foreign transaction fee (foreign currency mark-up fees) for every transaction. Take a look at some credit cards in India with no foreign currency markup fees:
RBL Bank World Safari Credit Card is among the top choices of credit cards that offer a vivid travel experience thanks to its 0% markup fee on all foreign transactions. Compared to other credit cards, travellers can save anywhere from 2-4% on all their foreign currency transactions.
The card comes with a voucher worth Rs. 3000 and travellers earn travel points on all their spending. These points can be redeemed for hotel and flight bookings.
The card also offers several milestone benefits depending on the amount spent. Also offers complimentary travel insurance with coverage for trip delays, personal liability, passport loss, baggage loss and dental treatment.
Fee: Annual membership fee of Rs. 3000 + GST
Key Benefits: Complimentary Priority Pass membership, 2 complimentary domestic lounge access every quarter, Golf privileges, fuel surcharge waiver, and more.
Described as a card laden with privileges, rewards, and luxury, Club Vistara IndusInd Bank Explorer Credit Card is another card with zero foreign currency mark-up on all international transactions. Upon payment of the, joining fee, users will receive gift vouchers worth Rs. 25,000, a Luxe Gift Card, and a lot more.
The card comes with a complimentary Club Vistara Gold Membership with benefits like priority check-in, additional baggage allowance and priority boarding.
Joining Fee: Rs 40,000
Annual Fee: Rs. 10,000
Key Benefits: 0 foreign currency markup, complimentary business class ticket voucher, 20% discount on Airport Fast Track, contactless credit card features,
Targeted at the ultra HNI Indians, the Axis Burgundy Private Credit Card (The One Card) has been recently launched to cater to a segment of customers. The card is available for its private banking customers and offers a plethora of transaction benefits including no forex mark-up on international payments and no cash withdrawal charges.
Other than these, it also offers several lifestyle and entertainment benefits such as 24X7 concierge services, 50 complimentary rounds of golf, unlimited lounge access, complimentary hotel and dining memberships, and more. It also offers travel insurance with air accident cover up to Rs. 4.5 crore along with lost card liability and purchase protection.
Eligibility: Only those with a Burgundy Private Savings Account can avail of this benefit. A minimum TRV of Rs. 5 crores are required.
Joining/Annual Fee: N/A (Rs. 50,000 if the customer downgrades their account)
Key Benefits: No foreign transaction fee, golf benefits, health and wellness offers, unlimited lounge access (international and domestic), and more.
A foreign transaction fee is usually in the form of a percentage and is assessed by the card issuer. If your fee is 3%, then you will need to pay that on every transaction.
To help you understand why you should check a card’s foreign transaction fee, consider this example:
Suppose you shop on international sites a lot, then credit cards with foreign transaction fees will cost you considerably as you'll need to pay that percentage on top of your spending every time. On every Rs. 1000 spent, you will need to pay an additional amount of Rs. 30.
In such a case, finding a card with the lowest or no foreign transaction fees will save you a lot of time. If you buy a card with a high foreign transaction fee, then it can cost you anywhere from 2 to 4% extra per transaction.
Travelling abroad is no short of an adventure. To successfully plan any foreign trip, money is perhaps the biggest concern while travelling abroad. Even before reaching your destination, plenty of things need to be considered and taken care of. While credit cards offer a great solution to the hassles of carrying money securely, don’t forget to buy best international travel insurance plan to ensure a safe trip. This will ensure that you never exceed your savings or get into financial travel whenever you are abroad!