Using credit cards abroad? Avoid hidden forex charges with these zero forex markup credit cards
Most people budget for flights and hotels when planning an international trip. Forex markup fees rarely make the list, but they should.
One cost that often goes unnoticed is the foreign transaction markup, a fee applied every time a card is used in a foreign currency. For frequent international travellers, this charge can accumulate noticeably over a trip.
Understanding how to avoid these charges is a practical step towards smarter travel spending.
What is a forex markup fee?
When a credit card is used abroad, the card network converts the transaction from a foreign currency to Indian Rupees. Most banks apply an additional percentage on top of this conversion, known as the forex markup fee. This usually ranges between 1.5% and 3.5% per transaction.
On a trip involving multiple purchases, hotel stays, and dining expenses, these charges can add up in ways easy to overlook.
How a zero-forex markup card helps
A zero-forex markup credit card eliminates the additional fee entirely, so the cardholder pays only the interbank exchange rate with no surcharge from the issuing bank.
The amount charged reflects the actual conversion rate, without any hidden percentage layered on top.
For those who make many online purchases in foreign currencies, the savings per transaction compound across multiple purchases.
Applicants looking to benefit from this feature can complete the process digitally. Those who choose to apply for credit card online will find that the process is simple, requiring only standard income and identity documents.
Cards with zero forex that are markup worth considering
Among issuers offering zero-forex-markup cards, three from IDFC FIRST Bank, spanning entry-level to premium, are outlined below.
1. Mayura Credit Card
A metal card positioned at the premium end, with zero forex markup on all international transactions.
Up to 40X reward points.
Complimentary domestic and international airport lounge access.
Annual fee: ₹5,999.
2. FIRST WOW! Black Credit Card
An FD-backed card with zero forex markup for applicants without a prior credit history.
Backed by a fixed deposit; no income proof required for eligibility.
Complimentary airport lounge access
Annual fee: ₹750+GST
3. FIRST WOW! Credit Card
An FD-backed card with zero forex markup for applicants without a prior credit history.
Backed by a fixed deposit; no income proof required for eligibility.
Up to 4X Reward Points
Lifetime free Credit card
4. Diamond Reserve Credit Card
A travel-focused card with zero forex markup and a structured rewards program for frequent international travellers.
Accelerated rewards on travel bookings
Complimentary airport lounge access
Annual fee: ₹3,000+GST
How to apply
Step 1: Go to the product webpage of the preferred card
Step 2: Click on “Apply Now”
Step 3: Fill in personal and income details as required.
Step 4: Upload documents as listed in the application checklist.
Step 5: Submit the form and track status through the bank's portal.
The application is fully digital, and you can track its status through the bank's portal. You can apply for a credit card online after reviewing the eligibility criteria for the variant you want.
Charges beyond the forex markup
Even with a no-markup card, certain other charges may apply when travelling abroad:
ATM withdrawal fees, if cash is drawn from international ATMs.
Dynamic Currency Conversion (DCC) charges, when merchants offer to bill in Indian Rupees instead of local currency (paying in local currency is the advisable approach).
Annual or joining fees, varying by card variant.
Being aware of these costs helps keep overall travel spend within expectations. A zero-forex markup credit card reduces only one layer of cost on international transactions, but it does not eliminate all travel-related charges. Cardholders are advised to review the most current fee schedule on the issuer's website before travelling, as charges are subject to revision.
Conclusion
A zero-forex markup card can reduce unnecessary costs on international spending. Choosing the right card depends on your travel frequency, credit profile, and how much value you place on benefits like lounge access. Reviewing the complete fee schedule, applicable taxes, and card benefits before applying can help customers make a more informed choice.