The invisible fee
Most Indian credit cards charge a foreign-currency markup of 3–3.5% on every international transaction — plus 18% GST on the markup itself, taking the real cost to roughly 4%. On a ₹2 lakh international trip, that is ~₹8,000 gone without a single line item you would notice on the bill.
Where it applies (more places than you think)
- Card swipes and online purchases billed in foreign currency
- International subscriptions (cloud, software, streaming) billed in USD
- Dynamic currency conversion (DCC) — when a foreign terminal offers to charge you "in INR", it stacks its own worse rate on top. Always choose the local currency.
Zero- and low-forex cards
A small set of cards waive the markup entirely or cap it near 1%. Whether that beats a high-reward card with full markup is pure arithmetic: a 3.3% rewards card with a 3.5% markup is a net loss abroad, while a modest-reward zero-forex card keeps you positive. Every card page in our database lists the exact forex markup in the fees table, so the comparison takes seconds on compare.
When a zero-forex card earns its keep
- You travel internationally even once or twice a year
- You pay foreign-currency subscriptions monthly
- You shop on international sites that bill in USD/EUR
If none of those apply, forex markup is irrelevant to you — pick cards on domestic math instead.
Bottom line
The markup is the rare fee that is both large and completely avoidable. Check the forex line in the fees table before your next trip — and if it says 3.5%, leave that card at home.