Zero forex credit cards and forex markup: what Indian cards charge abroad

What is a forex markup, and how much is it on my card?

A forex markup is the bank's fee for a transaction in a foreign currency, charged as a percentage on top of the exchange rate. It ranges from nil to 3.5% on the 14 bank documents we read, and GST is added to the fee. Those documents differ on the exchange rate itself: six name the card network's rate, three describe another basis and five do not state one.

On ICICI's website, the network converts the amount to rupees, the bank applies the markup to the rupee amount, and GST is charged on the markup. SBI Card's document uses the rate on the date the transaction settles, which may not be the date you bought, so your statement can differ from what you saw at the counter.

SBI Card, ICICI, Axis, RBL, IDFC FIRST and Yes name the network's rate. DBS uses the acquiring bank's rate, with a network rate for a currency that goes through dollars first. American Express uses an interbank rate it selects from an industry source. Kotak's terms say the bank decides. HDFC, IndusInd, AU, Standard Chartered and Canara do not state the basis. A currency other than the US dollar can convert twice: Axis, ICICI, RBL, DBS and American Express say it goes to dollars first and then to rupees.

What markup does each bank show across its open cards?

Most banks run from a lower rate on premium cards up to 3.5% on the rest, so the table gives each bank's range across its open cards. It comes from our catalogue, with the source and the date we read it, and rows marked Not confirmed need checking with the bank. Use your own card list to see the rate on the cards you hold.

520 of 562 open cards, from 37 banks. 42 open cards have no figure here because we did not find one. Rows marked Not confirmed are figures we could not check against the issuer document, so check with the bank.

Which Indian credit cards charge zero forex markup?

Every IDFC FIRST card listed in its current MITC does, and a letter effective 9 September 2026 says zero markup applies on all IDFC FIRST credit cards. The MITC does not list the business and corporate cards, so confirm those with the bank. On the other documents we read, zero is limited to named cards, including Axis Scapia, Burgundy Private and Primus, Kotak Solitaire, RBL World Safari and Lumiere, ICICI 1838 Reserve, IndusInd Pioneer Heritage, Pioneer Private and Indus Solitaire, ixigo AU, DBS Vantage and Yes Uni, AI Inside and NIYO. Banks we did not read may have others.

MakeMyTrip ICICI moves to no markup on 10 November 2026, according to ICICI's MITC last updated 9 October 2026. The change does not cover the MakeMyTrip Signature and Platinum cards. For a list you can filter, see low forex markup credit cards, lifetime free cards with low markup and travel credit cards.

Read at each bank's own MITC or fee document on 31 October 2026. Banks not listed here were not read for this table. Add GST to every figure.

What does USD 1,000 cost at 3.5% versus 1%?

At an assumed rate of Rs 90 to the dollar, USD 1,000 costs Rs 93,717 at 3.5% and Rs 91,062 at 1%, including 18% GST on the fee. The gap is Rs 2,655.

An example. USD 1,000 at Rs 90 is Rs 90,000. A 3.5% markup is Rs 3,150, and 18% GST on that is Rs 567, for a total of Rs 93,717. Multiply any markup by 1.18 for its full cost: 3.5% costs 4.13%, 2% costs 2.36%, and 1% costs 1.18%.

Is a zero markup card worth an annual fee? A Rs 2,500 fee is Rs 2,950 with GST. Against a 3.5% card it saves 4.13% of foreign spend, so it pays for itself at about Rs 71,430 of foreign spend a year. Add any rewards you would give up to that sum.

Rs 90 to the dollar is assumed for the arithmetic. It is not a quoted rate.

Why was I charged a markup on a payment made in rupees?

Because banks also charge a fee on rupee payments made at an international location, or to a merchant in India that is registered overseas. HDFC, SBI Card, ICICI, Axis, Kotak, RBL, IndusInd, Yes and AU all say this in their documents.

The rate may differ from the forex markup. HDFC has charged 1.75% since May 2026, and Yes Bank charges 1%. ICICI's document lists 3.5% from 15 January 2026, up from 1%.

An example. You pay Rs 5,000 in rupees to a merchant registered overseas. On a standard HDFC card the fee is Rs 87.50, and GST is Rs 15.75, for Rs 103.25 in all.

None of these documents lists which merchants count as registered overseas.

Should I pay in rupees or local currency at a foreign counter?

ICICI tells its cardholders to pay in the local currency. Choosing rupees is called dynamic currency conversion, and it can add charges from the merchant's side as well as your bank's fee.

IDFC FIRST's MITC, which lists its own fee as nil, says the amount may include fees charged by the acquiring bank or service provider. So zero on your bank's side does not cover the merchant's conversion rate.

Visa's rules require a merchant or ATM offering this to tell you it is optional and not to pre-select it, and you must expressly agree. If a terminal shows rupees without asking, ask for local currency.

Do I get the markup back if the merchant refunds me?

Not at SBI Card, which says its foreign currency and currency conversion fees are not reversed on refunds. ICICI and Axis say a refund you initiate attracts a 3.5% fee as well, and neither says whether the first fee comes back. The other documents we read do not address it, so ask your bank.

On a USD 100 purchase at Rs 90 on a 3.5% card, you pay Rs 315 plus Rs 56.70 GST. SBI Card does not reverse the Rs 315. At ICICI or Axis, the same refund at the same rate attracts a Rs 315 fee, plus GST if it applies.

The exchange rate can also move. Seven of these documents convert a purchase on its settlement date, and none promises a refund at the rate you paid.

Does zero forex mean no other cost abroad?

No. Rewards and cash withdrawals still carry their own terms. IDFC FIRST first said international transactions would stop earning reward points from 26 October 2026, then dropped that in a later letter: points continue as applicable for each card. Its Ashva letter says that card earns 2X on eligible international spends from 26 October 2026.

Cash from a foreign ATM can cost more than a purchase. ICICI's website says overseas withdrawals may attract a cash advance fee, the markup and interest from the withdrawal date. See cash withdrawal charges.

Nepal and Bhutan are different. SBI Card says its card is not valid for foreign currency transactions there. American Express says no markup applies there, because such a charge is billed in rupees.

Is a forex card cheaper than a credit card?

It can be, but the fee pages do not settle it, because neither page we read gives the margin in the rate you pay when you load. Get the bank's rupee quote on the day and compare it with your credit card's cost at 4.13% or lower over the rate your card uses.

HDFC's Multicurrency Platinum ForexPlus page lists Rs 500 to issue, Rs 75 for each reload, and a 2% markup when the transaction currency is not on the card, all plus GST. Currency conversion tax also applies on load, reload and refund: 0.18% or Rs 45, whichever is higher, up to Rs 1 lakh. The page says Tax Collected at Source applies but does not state the rate, so check it with the bank before you load. Loads count under the Liberalised Remittance Scheme, up to USD 250,000 a financial year.

ICICI's forex card page lists no fee on POS or online transactions in the card currency, and 3.5% plus GST when the billing currency differs from the card currency.

Does spending abroad on a credit card attract TCS?

The Finance Ministry's release of 28 June 2023 says international credit card transactions while overseas would not be counted under the Liberalised Remittance Scheme, and so would not be subject to TCS. The RBI's FAQ, updated 28 November 2025, says the scheme's limit does not apply to an international credit card used for expenses on a visit outside India. That release is from 2023, and we could not open the Income Tax Department's current TCS guidance.

That RBI line sits in a passage on cards issued by overseas banks, and the same answer puts international debit cards and stored value cards within the limit. The 2023 release postponed a May 2023 rule change and did not withdraw it. It says TCS still applies to overseas tour packages, regardless of mode of payment. Neither text says how a payment made online from India is treated. Standard Chartered's MITC says online use on overseas merchants' websites is subject to the LRS limit. ICICI's MITC, last updated 9 October 2026, says TCS will be charged on overseas card spends if the authorities notify them under LRS. We do not state TCS rates or thresholds here, so ask your bank.

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