Travelling abroad for summer holidays? Here are 5 credit cards with low forex markup fees

If you are traveling abroad with your friends or family for the summer holidays, a credit card is one of the most convenient ways to make payments. However, most credit cards charge a high forex markup fee for payments in foreign currency which can go up to 3.5 percent of the transaction amount. To help card users save on their international spends, some issuers offer credit cards with low forex markup fee. Such cards may also come with travel benefits like complimentary lounge access, hotel memberships and additional benefits. TechnoFino has identified five credit cards that charge a low forex markup fee and help you save on your international travel expenses.

While using the credit card, users need to understand the difference between rewards rate and effective rewards rate. A reward rate means, percentage of reward a user will earn by spending money within and outside India. We calculate an effective reward rate as actual reward rate less mark-up fees. Banks charge markup fees for transacting in USD or any other currency (non-INR).

Image Source: RBL Bank | On RBL World Safari Credit Card, there are no charges for foreign exchange mark-up fee. It offers MakeMyTrip welcome voucher worth Rs 3,000. The card users get a priority pass membership to access international airport lounges. It offers two complimentary domestic and international lounge access per quarter. The bank offers 10,000 travel points on spending Rs 2.5 lakh in a year using this card and an additional 15,000 on spending Rs 5 lakh in a year. There are no reward points on international purchases. The annual fee is Rs 3,000 on this credit card.

Image Source: Axis Bank | On Axis Bank Burgundy Private Credit Card, there are no charges for foreign exchange mark-up fee on international transactions and no finance charges on cash withdrawal from ATM. The cardholders get unlimited lounge access at domestic and international airports. The users get discounts up to 30% on conveyance to airports in India and abroad. The reward rate and effective reward rate is 6 percent on airmiles/loyalty programme. The annual fee is Rs 50,000 for credit card applicants, but no annual charges for Burgundy Private customers.

Image Source: HDFC Bank | HDFC Diners Club Black Credit Card charges 2 percent forex markup fee on all foreign currency transactions. The cardholder has unlimited airport lounge access in India and worldwide. It offers annual membership of Club Marriott, Forbes, Amazon Prime, Zomato Pro, Times Prime, etc. It also offers vouchers from Ola Select, cult.fit Live, BookMyShow and TataCliQ on spends of over Rs 80,000 every month. The reward rate is 3.30 percent and the effective reward rate is 1.94 percent till Rs 1 lakh in a billing cycle. The annual fee is Rs 10,000 on this credit card.

Image Source: Axis Bank | Axis Bank’s Magnus Credit Card charges 2 percent forex markup fee on all foreign currency transactions. The cardholder has unlimited airport lounge access in India and worldwide. As an annual benefit, the user can choose between one complimentary domestic flight ticket and a Tata CLiQ voucher worth Rs 10,000. The reward rate is 4.8 percent on travel spends and the effective reward rate is 2.44 percent. The annual fee is Rs 10,000 on this credit card. Annual fee is waived off on spend of Rs 15 lakh in the preceding year.

Image Source: HDFC Bank | HDFC Bank Infinia Credit Card charges 2 percent forex markup fee on international transactions. The card offers unlimited airport lounge access within and outside India to primary and add-on member. It offers complimentary club Marriott membership for the first year and complimentary nights and weekend buffets at participating ITC hotels. The reward rate is 3.30 percent and the effective reward rate is 1.94 percent till Rs 1 lakh in a billing cycle. The annual fee is Rs 12,500 on this credit card.

Have a disciplined approach to your credit behaviour. Once you get a credit card, it is critical that you use it smartly and responsibly. Since credit cards offer a significant interest-free period, there may be a tendency to overspend while travelling abroad on vacation at partnered hotels or resorts as well as while shopping from partnered merchants. Banks charge a foreign exchange markup fee when you are making a payment in a foreign currency, so spend wisely. If you spend more than you can repay and cannot pay your credit card bill timely, you will incur hefty interest charges ranging from 28 to 49 percent per annum along with late payment fees.

TechnoFino has shortlisted the credit cards based on the benefits and low forex markup fees charged. All credit card information is sourced and updated as of April 5, 2023. We arranged these credit cards according to lowest forex markup fees charged.