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Diwali holiday travels: Credit cards with low forex markup fee

Credit cards with low forex markup fees comes with travel benefits like complimentary lounge access, hotel memberships and additional benefits.

October 24, 2022 / 08:45 AM IST
If you are traveling abroad with your friends or family during Diwali 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.  Paisabazaar  has identified the five credit cards that charge a low forex markup fee and help you save on your international travel expenses.
If you are traveling abroad with your friends or family during Diwali 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. Paisabazaar has identified the five credit cards that charge a low forex markup fee and help you save on your international travel expenses.
YES FIRST Exclusive Credit Card_final
Image Source: YES Bank | YES FIRST Exclusive Credit Card charges 1.75 percent forex markup fee on international transactions. The cardholders get six international airport lounge access under the complimentary Priority Pass Membership and three domestic lounge accesses per quarter for primary and add-on cardholders. It offers six reward points per Rs 200 spent on selected merchant categories and 12 reward points per Rs 200 spent on other categories. The users get 25,000 bonus reward points on spending Rs 20 lakh in a year. The annual fee is Rs 999.

Image Source: IndusInd Bank | IndusInd Legend Credit Card charges 1.8 percent forex markup fee on international transactions. The cardholders get a complimentary stay at Oberoi Hotel in the country and various discount vouchers from Amazon, Flipkart, Big Bazaar, Uber & more. It offers complimentary priority pass membership worth USD 198 annually and EazyDiner Prime membership to the cardholder. The users get 4,000 bonus reward points on spending Rs 6 lakh or above within a year. There is a one-time joining fee of Rs 9,999, thereafter, no annual fee will be levied on this card.
Image Source: IndusInd Bank | IndusInd Legend Credit Card charges 1.8 percent forex markup fee on international transactions. The cardholders get a complimentary stay at Oberoi Hotel in the country and various discount vouchers from Amazon, Flipkart, Big Bazaar, Uber & more. It offers complimentary priority pass membership worth USD 198 annually and EazyDiner Prime membership to the cardholder. The users get 4,000 bonus reward points on spending Rs 6 lakh or above within a year. There is a one-time joining fee of Rs 9,999, thereafter, no annual fee will be levied on this card.
SBI Card Elite_e
Image Source: SBI Card | SBI Elite Credit Card charges 1.99 percent forex markup fee on international transactions. The cardholders get a complimentary Trident Privilege Membership and Club Vistara membership. It offers six complimentary airport lounge access internationally and two complimentary domestic lounge access and other benefits. It also offers complimentary membership to the Priority Pass Program worth USD 99 annually. The cardholders get 10,000 bonus reward points on spending Rs 3 lakh or above within a year. The annual fee is Rs 4,999 on this card.

IDFC First Select Credit card
Image Source: IDFC First Bank | IDFC First Select Credit Card charges 1.99 percent forex markup fee on international transactions. The cardholder gets four complimentary domestic airport lounge access and four domestic railway lounge access per quarter. On spends above Rs 20,000 it offers 10x reward points. You can redeem the accumulated reward points against travel offers. The annual fee is nil on this card.
HDFC Diners Club Black Credit Card_v1
Image Source: HDFC Bank | HDFC Diners Club Black Credit Card charges 2 percent forex markup fee on international transactions. The cardholders get complimentary annual memberships of Club Marriott, Forbes, Amazon Prime, MakeMyTrip BLACK and Times Prime. The cardholders also get unlimited airport lounge access in India and worldwide for both primary and add-on users. It offers up to 10x reward points on spends via SmartBuy and 2x on weekend dining. The cardholders get five reward points for every Rs 150 spent. The annual fee is Rs 10,000.

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.
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.
Credit,Cards
Paisabazaar 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 September 29, 2022. We arranged these credit cards according to lowest forex markup fees charged.
Hiral Thanawala is a personal finance journalist with 9 years of reporting experience. Based in Mumbai, he covers financial planning, banking and fintech segments from personal finance team for Moneycontrol.
first published: Oct 13, 2022 08:00 am