Santa Claus comes around just once a year. In the meantime, there are Credit Cards.
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    Credit Card Overseas Charges

    Travelling overseas and taking a well-deserved international vacation is arguably the best way to spend your money. Credit cards make it really easy to travel and spend without being hassled with counting notes and fumbling with change. But there is also a downside to using credit cards on your travels if you aren’t the type to diligently manage your finances. Let’s understand this with an example.

    You saved some money for a trip to Europe and you finally got to do it! Not only have you spent a good amount on traveling, but also on fine dining and extravagant shopping. Some of the unplanned expenditures were handled by your international credit card. You ensured that all the exchange rates were noted when the transactions were made andou also calculated the bill that you were going to get with your credit card statement.

    After some time, you came back home and started living the everyday life blissfully unaware that on its way was your credit card statement with the bill. Prepare yourself for the shock of your life as the amount you calculated is probably nowhere near the amount you owe the bank, as the bill will inevitably overshoot by 5% to 6%..

    Types of Charges Involved for Overseas Transactions

    There are 3 types of charges involved. These are as follows:

    Foreign Currency Conversion Fee – Since you hold an Indian credit card, the balance that you have on the card is in Indian currency. When a transaction is carried out using your Indian credit card, then a conversion fee will be charged. Let’s say you spend in Euros using your Indian credit card. A conversion fee will be applicable for converting INR to EUR. MasterCard and Visa charge a fee of 1% to 2% of the foreign currency exchange. Any amount that is in excess becomes the bank’s small margin profit.

    Foreign Transaction Charge – A Foreign Transaction charge is applicable for almost all the banks like ICICI, SBI, PNB, HDFC, Citibank, etc. This is nothing but the fee for cash withdrawal. It forms 2.5% to 3.5% of the transacted amount. This fee is applicable irrespective of currency, cash withdrawal or transaction amount.

    Cash Advance Fee – Cash advances can prove to be costly, even when you do it in India. If you are using your Indian credit card for cash withdrawal overseas, then it is obviously going to cost you more. Every time you withdraw cash using your Indian credit card in a foreign country, a fee of 1% to 4% will be charged. A standard cash withdrawal fee will also be applicable along with the overseas cash withdrawal fees.

    Why does the value on your credit card statement differ from the figure that you had in mind?

    The entities that are involved in a transaction apply additional charges for any overseas credit card transaction. The first entity is the issuing bank like ICICI or SBI. The second entity is the credit card company like MasterCard or Visa.

    Why is the additional fee applied?

    The add-on costs and charges are associated with currency conversion. This is the primary reason why an additional fee is applied. Small margin profits of the issuing bank and MasterCard/Visa are another reason why the additional fee is applied.

    Currency Conversion Rate on Transaction Day

    The exchange rate that is applicable to a particular transaction is the rate as of the settlement day, which is when MasterCard and Visa determine the amount of settlement to be exchanged between the issuer and the acquirer. Thus, the date of settlement is prior to the actual transaction date. So, the exchange rate that you had in mind while calculating all your expenses might differ from the actual transaction rate. This can also happen as merchants report your transaction to MasterCard or Visa after a day or two after the transaction. The calculation of the exchange rate is done 1 day in advance by MasterCard and Visa. This is also applicable for every transaction throughout the day at the same rate.

    More Information Regarding the Charges

    In order to avoid being surprised by the exchange rate in the future, it is highly advisable that you stay equipped with all the necessary knowledge of the charges that will be associated with your credit card transactions. The Foreign Currency Conversion data can be found on MasterCard and Visa websites. These rates keep changing and you should definitely check them before you travel.

    Cash Advance Fee data and Foreign Transaction Charges data can be availed from the banks. Before you pack your bags, you can call your bank’s customer care service and find out more about these charges. These charges may fluctuate at regular intervals as they are dynamic in nature.

    How can I Choose the Best CC to use Overseas

    In case you are a frequent flyer, you must inquire about all the charges associated with foreign transactions and cash withdrawals before you apply for a credit card. You might find that there is a difference of 1% to 2% in the credit card offers provided by various banks. Choose the one that costs you the least. A great deal cannot be done about currency conversion fees as they are determined by Visa or MasterCard.

    You must also read the offer document carefully before you take a decision. The offer document should not be underestimated or overlooked. There are several facts in that set of documents that might surprise you. All the details of the charges are present on the offer document. Since the rates are dynamic and they change from time to time, you might not find the exact figures. However, you will find everything about the regulations that govern these charges.

    Credit Card Overseas Charges Reviews

    • HDFC Bank Credit Card
      "Good in all"
      0.5 5.0/5 "Blown Away!"
      HDFC Bank has offered me a credit card and the customer services are good. They also provide me with good offers and a very good credit limit. It is a smooth process while using the card, I never faced any hassles in the overall process till date.
      Was this review helpful? 0
      , kolkata
      Reviewed on Mar 22, 2019
    • Citibank Credit Card
      "Experience is good"
      0.5 5.0/5 "Blown Away!"
      Citibank has been overall good in the customer services. The online banking is good and the credit card offers are also good. The statements are also good and the billing is also in a timely manner. The credit limit is also fine and there are no charges taken for the card.
      Was this review helpful? 0
      , kolkata
      Reviewed on Mar 22, 2019
    • ICICI Bank Credit Card
      "Average"
      0.5 3.5/5 "Pretty good"
      I have been using ICICI Platinum card for more than 1.5 years. The credit limit is low which they need to increase. IVR takes longer time for the connectivity also they need to improve the service. There is no annual charge for this credit card.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 22, 2019
    • RBL Bank Credit Card
      "Good card for the withdrawal"
      0.5 5.0/5 "Blown Away!"
      From RBL I have et money card it gives the flexibility of taking the cash without any interest. I can withdraw the maximum of 100%, the credit limit is also satisfactory with RBL card. One month back I got the card, the due date is convenient for me.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 22, 2019
    • HDFC Bank Credit Card
      "Recommendable Card"
      0.5 5.0/5 "Blown Away!"
      I get 10x points from HDFC card based on the spends, In fact the cash back is also excellent. The customer support is good for the credit card queries, but there is a long queue to connect with the executive. They don't have direct contact no, first I need to verify my details in IVR, then again the executive verify it, therefore the process should be simple.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 22, 2019
    • Citibank Credit Card
      "Good card for all transaction"
      0.5 5.0/5 "Blown Away!"
      I have reward points from CITI bank, I get more bonus points on the transactions, they give cash back offers for some transaction, I don't what to call them everything is prefect, the interest is also reasonable, I am using life time free credit card.
      Was this review helpful? 0
      , pune
      Reviewed on Mar 22, 2019
    • HDFC Bank Credit Card
      "Need to increase the limit"
      0.5 5.0/5 "Blown Away!"
      I have HDFC Bharath credit card and using it for past 1.5years. The service is excellent and they are not charging high for the late payments. The credit limit is average and they need to enhance the limit. It is a life time free credit card. There was no much offers.
      Was this review helpful? 0
      , vadodara
      Reviewed on Mar 22, 2019
    • Bank Bazaar Credit Card
      "Simple method for getting credit card "
      0.5 5.0/5 "Blown Away!"
      Through Bank bazaar it is a simple process of getting the credit card in quick time .It hardly took 1 week of time in Online method . I came to know bank bazaar through SMS . Customer executive guided about the various credit card in online . Mobile app is also user-friendly .
      Was this review helpful? 0
      , kolkata
      Reviewed on Mar 22, 2019
    • Axis Bank Credit Card
      "Good card"
      0.5 4.0/5 "Great!"
      Axis Bank has offered NEO credit card and am using it for past 6 months. The credit limit is sufficient for the beginner, its 40K. The rate of interest is too high for late payment charges which they need to reduce. It is a life time free credit card.
      Was this review helpful? 0
      , vadodara
      Reviewed on Mar 22, 2019
    • IndusInd Bank Credit Card
      "Online shopping and EMI is major advantage"
      0.5 5.0/5 "Blown Away!"
      I recently applied for the Indusind bank credit card in the on-line method . Within 10 days of time ,I got a good response till the time of dispatchement of my card . No annual fees for this card . The main plus point with Indusind bank credit card is the on-line shopping .
      Was this review helpful? 0
      , kolkata
      Reviewed on Mar 22, 2019
    • Kotak Credit Card
      "Good Card with Kotak"
      0.5 5.0/5 "Blown Away!"
      I am using Kotak Mahindra card for around two years, I have salary account hence everything is fine for me. The credit limit is not good because they gave only Rs.22,000, they need to enhance the card limit. I have master card and the accessibility is great.
      Was this review helpful? 0
      , faridabad
      Reviewed on Mar 22, 2019
    • RBL Bank Credit Card
      "Average Credit card"
      0.5 5.0/5 "Blown Away!"
      Almost it is going to be 3 months since I started to use this RBL credit card . Normally I will do most of the shopping Off-line .Offers are on-line and it is up to the expectation . RBL mobile app is very easy for making the payment and downloading the statement .
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 22, 2019
    • Axis Bank Credit Card
      "Credit limit is not sufficient "
      0.5 5.0/5 "Blown Away!"
      For the past 6 months, I am using the AXIS bank credit card . My credit limit is around 25 k only . But this credit limit is very insufficient to use .I am not getting any notification about the various offers in on-line . Annual fees is around 499 - .
      Was this review helpful? 0
      , ahmedabad
      Reviewed on Mar 22, 2019
    • Axis Bank Credit Card
      "EXCELLENT"
      0.5 5.0/5 "Blown Away!"
      I have been using the credit card with the AXIS BANK the card is user friendly to use. The credit limit with this card is satisfactory added on that the offers with this card is good. I am using it from last few years with this card. There is a EMI conversion option but there is no balance transfer option with this card.
      Was this review helpful? 0
      , bhopal
      Reviewed on Mar 22, 2019
    • ICICI Bank Credit Card
      "BETTER"
      0.5 3.5/5 "Pretty good"
      I am not satisfied with the credit card that i am using it with the ICICI BANK because the credit limit with this bank card is not satisfactory also there are no offers available with this credit card. There is a EMI conversion option with this credit card which is good also it is easy to convert.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 22, 2019
    • HDFC Bank Credit Card
      "BETTER"
      0.5 3.5/5 "Pretty good"
      I have a credit card with the HDFC BANK the credit limit with this bank they have offered is average and i am not getting any offers with this bank. There is a EMI conversion option with this bank it is good and easy to convert with this bank credit card.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 22, 2019
    • ICICI Bank Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      It has almost been ten months since i am using this credit card and the services which they had provided me has been pretty good. But the credit limit with the card has been less and there has not been any annual charges with this card. I had been using this credit card for all sort of purposes.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 22, 2019
    • HDFC Bank Credit Card
      "Excellent card"
      0.5 5.0/5 "Blown Away!"
      HDFC has given me a Money Back credit card and using it for past three years. I am happy with the credit limit. There was no annual charges and am paying monthly due. The charges are reasonable for EMI conversion. I got reward points but my sister use to redeem so have no idea.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 22, 2019
    • IndusInd Bank Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I am just using this credit card for the last one week and the services which they had provided so far has been pretty good. They had given me with a good credit limit and it does not have any sort of annual charges. I am using this credit card for all sort of purposes.
      Was this review helpful? 0
      , bangalore
      Reviewed on Mar 22, 2019
    • RBL Bank Credit Card
      "Good for all transaction"
      0.5 4.0/5 "Great!"
      I am holding RBL bajaj credit card, features are like the monthly benefits which they give like surcharges on the products, extra points on the shopping with the air lounges. The limit is very satisfied with RBL credit card, I am happy with it.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Mar 22, 2019
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