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  • Foreign Transaction Fee On Credit Cards

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  • Before reading through the list of foreign transaction fees that most major credit cards charge in India, it is important to understand what a foreign transaction fee is and how it works.

    What Is A Foreign Transaction Fee?

    A foreign transaction fee is an amount that credit card companies charge their customers whenever a transaction is made with a foreign currency or perhaps, passes via any foreign bank. To process a foreign transaction, the card issuer charges a percentage of the total transaction amount, which is usually 3% or more.

    The details about the foreign currency transaction fee are mentioned in the statement separately. Therefore, it is vital to read the guidelines and other charges involved with foreign transactions before applying for a credit card.

    How Much Is A Foreign Transaction Fee?

    Usually, MasterCard and Visa charge a foreign currency transaction fee of 1%. However, most credit card companies add an extra percentage on it, making the fee range from 1.5% to 3% or even more. Therefore, this fee differs from one credit card issuer to the other.

    It is mandatory for every credit card issuer to disclose or reveal the fees involved with the foreign transactions at the time of issuance. If the issuer fails to do so, a settlement has to be paid to the cardholder.

    However, this rule was applied earlier. Now, all this information is explained clearly in the credit card agreement. Therefore, it is crucial to read the entire credit card document carefully before applying. These essential details are also mentioned on the issuer’s official website.

    How Does The Foreign Transaction Fee Work?

    The foreign transaction fee is assessed by the credit card issuer and is typically in the form of a percentage, 3% being very common. However, this percentage can vary from one issuer to the other. While 3% as a foreign transaction fee may not seem much, keep in mind that this applies to each foreign transaction that you make with the card.

    Say, for example, you are someone who frequently travels abroad and shops the most on foreign websites, then cards with foreign transaction fees might not be the ones for you because paying those additional charges every time you make a foreign transaction with the card can actually turn out to be expensive when you calculate it for the entire year. In such cases, look for a card that doesn’t include them.

    Fortunately, not all cards charge on foreign transactions. There are a few that don’t impose this fee. However, such cards need to be researched.

    Pay Attention To The Currency Conversion Fee Too

    If you have taken trips to abroad, then you would know how expensive it is to exchange the cash for local currency. Be it international ATMs or airport kiosks, you will always end up paying some extra funds to receive the cash.

    However, what most of them are not aware of is that this concept applies to credit cards as well. Each time the credit card is swiped, you are being charged a fee for the currency conversion.

    Unlike a foreign transaction fee, a currency conversion fee is not charged by the issuer or the credit card company. In fact, it is assessed by the payment processor of the card. Both MasterCard and Visa charge 1% of the amount that is spent overseas. It depends on the country you are traveling in.

    Usually, the payment processor charges 1% to the issuer but they pass this fee to you. Now, this literally means that you will have to pay both foreign transaction fee and currency conversion fee each time a purchase is made with the card.

    The trickiest part of the currency conversion fee is that it doesn’t appear separately on the credit card statement. They are just included in the foreign transaction you have made. Moreover, there is no clarity on how much conversion fee the credit card company charges their customers.

    Customers usually compare the amount on their receipts with the ones that appear on the statements to know exactly how much the bank or the credit card company is charging.

    Currency Conversion Fee Of Major Credit Cards In India

    The Cross-Currency Markup is charged on each time a foreign transaction is made with the Indian credit card. Usually, credit card issuers in India charge 3% to 5% but this differs from one bank to the other.

    Also, this is applied to the “settlement date” and not on the “transaction date.” The currency conversion markup fee of few of the leading banks in India are as follows:

    • ICICI Bank – 3.5%
    • HDFC Bank – 3.5%
    • Axis Bank – 3.5%
    • Kotak Mahindra Bank – 2.5%

    Foreign Transaction Fee Of Major Credit Cards In India

    Two of the commonly accepted payment networks – MasterCard and Visa, act as the mediators between the merchant from which a foreign purchase is being made and the issuing bank (HDFC, SBI, Kotak Mahindra, ICICI, Axis, etc.) Therefore, when you use a credit card outside India, both these payment networks charge 1% on the issuing bank and 2% if the payment network is different.

    Therefore, it is important to read the charges before making any kind of foreign payment through the credit card.

      

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    Foreign Transaction Fee On Credit Cards Reviews

    • Axis Bank Credit Card
      "Best Service"
      0.5 3.5/5 "Pretty good"
      I have Axis bank credit card which was applied through Bank directly.I am using this credit card for the past 8 months .This was a chargeable card .The credit limit was really good and it was sufficient .I have got this credit card on time and got all the details about the card process.
      Was this review helpful? 1
      , vellore
      Reviewed on Sep 13, 2019
    • ICICI Bank
      ICICI Bank Credit Card
      "Good Service"
      0.5 4.0/5 "Great!"
      I am using ICICI Bank credit card which was directly taken through Bank .I am using this credit card for the past 3 years .I have got a very good credit limit and got all the required information about the card process This was a free card .I have not used and checked cash back offers and reward points .
      Was this review helpful? 1
      , surat
      Reviewed on Sep 13, 2019
    • HDFC Bank Credit Card
      "Good Service"
      0.5 4.0/5 "Great!"
      I am using HDFC Bank credit card which was directly taken through Bank .I am using this credit card for the past 3 years .I have got a good credit limit and got all the relevant information about the card process.I have not checked cash back offers and reward points .I have not used this card much so far.
      Was this review helpful? 2
      , surat
      Reviewed on Sep 13, 2019
    • Canara Bank Credit Card
      "Good Credit Card"
      0.5 5.0/5 "Blown Away!"
      I have a credit card of Canara bank with life time free benefits, but I am not using it often. The credit limit is sufficient for my transactions, I have been holding this card from 2006 I didn't request for any upgrade on the card because I don't have interets however there is no hidden charges taken from my end.
      Was this review helpful? 0
      , panipat
      Reviewed on Sep 13, 2019
    • Bank Bazaar Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through Online .This website is really doing a very good service .Customer service is really good and comfortable to me so far .Each and every financial products will be processed in a smooth manner it is really good .I am really satisfied with the service.
      Was this review helpful? 0
      , mumbai
      Reviewed on Sep 13, 2019
    • IndusInd Bank Credit Card
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I am using Indusind Bank credit card which was applied through Online .This card is having a very good credit limit and also there are reward points as well cash back offers which is really convenient .There was no difficulties faced so far on using this credit card .I am really satisfied with the service.
      Was this review helpful? 0
      , mumbai
      Reviewed on Sep 13, 2019
    • Bank Bazaar Credit Card
      "Good Service"
      0.5 5.0/5 "Blown Away!"
      I came to know about Bank bazaar through Online .This website is having a better facility to check credit score since it is a free service can check whenever necessary .Whatever the needs it will be fulfilled through this portal .We can get all the information such as loans and credit cards and also update to information will be received when apply for any products.
      Was this review helpful? 0
      , pune
      Reviewed on Sep 13, 2019
    • IndusInd Bank Credit Card
      "Good Service"
      0.5 4.0/5 "Great!"
      I am using Indusind Bank credit card which was applied through Online .In this credit card will have offers for Shopping and movie ticket bookings which is really good .I have got this credit card on time .The credit limit was 93,000 and it was really sufficient .There was no drawbacks faced while submitting the documents .
      Was this review helpful? 1
      , pune
      Reviewed on Sep 13, 2019
    • Bank Bazaar Credit Card
      "Good"
      0.5 4.0/5 "Great!"
      I have downloaded Bankbazaar's mobile application. I get to see my updated credit score through Bankbazaar's mobile application. It's very simple and easy to use. I had come to know about Bankbazaar from an advertisement. Happy with their service.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Sep 13, 2019
    • IndusInd Bank Credit Card
      "Good"
      0.5 5.0/5 "Blown Away!"
      I received my INDUSIND BANK PLATINUM AURA EDGE MASTER CARD. Credit limit is lower than I expected. I was expecting 1 lakh but they have given only 75 thousand. I had received the card on time and annual fee is free.I am getting reward points and offers.
      Was this review helpful? 0
      , gurgaon
      Reviewed on Sep 13, 2019
    • Bank Bazaar Credit Card
      "Good"
      0.5 5.0/5 "Blown Away!"
      I have been using Bankbazaar's website for the past 8 to 10 months. I used to check my credit score on Bankbazaar's website. Their customer care executives were very helpful. They had provided clear information when I applied for credit card.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 13, 2019
    • IndusInd Bank Credit Card
      "Good"
      0.5 5.0/5 "Blown Away!"
      I had applied an Indusind Bank credit card. I received the card on time. There was no problem submitting the documents. I have got sufficient credit limit.I have received the card on time and it is a lifetime free card. Reward points are good.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 13, 2019
    • Bank Bazaar Credit Card
      "Informative Website"
      0.5 5.0/5 "Blown Away!"
      I am getting more service from Bank Bazaar.com, whenever I approach for any loans, credit card, the service level is satisfactory. The customer representatives are very polite interms of answering my queries. The website is very good to check all information.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 13, 2019
    • IndusInd Bank Credit Card
      "Good Card"
      0.5 5.0/5 "Blown Away!"
      My Indusind bank platinum aura card has the shopping benefits without any yearly fee and joining fee. More over the credit limit is sufficient around Rs.75,000 its enough for me and they do have fuel surcharges for petrol filling at selected partners.
      Was this review helpful? 0
      , new delhi
      Reviewed on Sep 13, 2019
    • Bank Bazaar Credit Card
      "Good"
      0.5 4.0/5 "Great!"
      I have been using Bankbazaar's website for a while. Their website and mobile application and very user friendly. I have come to now about Bankbazaar.com from the internet. I always check credit score on their website. Customer service was good.
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 13, 2019
    • YES Bank Credit Card
      "Good"
      0.5 4.0/5 "Great!"
      I have received my YES PROSPERITY EDGE from Yes Bank. Credit limit is good and there is no annual fee.Yes bank customer service was good, I had received the card on time. The features of the card are great. I am getting reward points and cashback offer.
      Was this review helpful? 0
      , chennai
      Reviewed on Sep 13, 2019
    • Citibank Credit Card
      "Good card for all spends"
      0.5 4.0/5 "Great!"
      From CITI bank I got reward card, best part I could convert the rewards points into cash and if I use this credit card at Indian oil petroleum they give cash back. This card has life time free benefits, they already gave me sufficient limit hence its fine for me.
      Was this review helpful? 2
      , pune
      Reviewed on Sep 13, 2019
    • HDFC Bank Credit Card
      "Good for travelers"
      0.5 5.0/5 "Blown Away!"
      Past 4 years I have been holding HDFC card, earlier I had rewards titanium credit card very recently I upgraded to Regalia card it has yearly fee. They are providing airport lounge facility with travel discounts at make my trip and goibgo. The customer care executives are very helpful but rate of interest is higher for the late fee.
      Was this review helpful? 1
      , pune
      Reviewed on Sep 13, 2019
    • Bank Bazaar Credit Card
      "Satisfactory"
      0.5 5.0/5 "Blown Away!"
      I appreciate the responsiveness of Bank Bazaar.com, they are more prompt when I approached for the YES Bank card, I got satisfactory service. First time I came the site through internet search then I logged in for the credit card purchase. It would be great if Bank Bazaar provides more offers based on the customer profile.
      Was this review helpful? 0
      , pune
      Reviewed on Sep 13, 2019
    • YES Bank Credit Card
      "E commerce offers should be increased"
      0.5 3.0/5 "Satisfactory"
      Reason to select this YES Prosperity card has an option to earn more points based on the spend, they gave me Rs. 35,000 as limit its fine for me. It has life time free benefits but I am not getting any offers at e commerce sites like amazon, flipkart.
      Was this review helpful? 1
      , pune
      Reviewed on Sep 13, 2019
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