Best Zero Markup Cards for International Travel
Forex Markup Fee
Forex Markup is an extra fee that banks or financial institutions charge when you use your card for transactions in a foreign currency. It is added on top of the exchange rate. For example, if you buy something in a different country, your bank may apply a higher exchange rate than the actual market rate, and the difference is the forex markup. Cards with zero forex markup do not charge this extra fee, making them more cost-effective for international transactions.
Other Forex Related Expenses
Foreign exchange fees
Foreign exchange fees are a broader range of charges related to exchanging currencies, including Conversion Charges (Exchange Rate), Markup fees, Service charges etc applied by banks or currency exchange providers. These fees are imposed by banks or financial institutions for converting one currency into another, typically incurred during international transactions or currency exchanges.
Conversion Charges
Currency conversion charges represent the fees imposed by banks or financial entities for converting one currency to another, typically incurred during foreign currency transactions or cash conversions. With most forex cards, the exchange rate is determined by networks like VISA, MasterCard, or RuPay, facilitating the conversion between INR and foreign currencies.
Card Issue Charges
Card issue charges for forex or travel cards are fees imposed by banks or financial institutions for issuing prepaid cards such as Forex Cards, specifically designed for foreign currency transactions or travel purposes. These charges cover the administrative costs associated with card issuance, activation, and delivery to the cardholder.
Forex Reloading Fees
Forex card reloading fees are charged when cardholders add funds or reload their prepaid forex cards with additional currency using INR.
Goods and Services Tax (GST)
GST is also applied on various foreign exchange fees.
Types of Cards for International Travel
Some commonly used cards for international travel include credit cards, debit cards, prepaid travel cards, and forex cards. These cards are widely accepted globally and offer various benefits such as zero foreign transaction fees, competitive exchange rates, and travel-related perks like travel insurance and airport lounge access.
Debit Cards
Debit cards offer convenient access to funds in bank accounts for transactions, including cash withdrawals from ATMs. However, fees may apply for such cash withdrawals, especially when conducted at ATMs overseas. Additionally, debit cards often come with higher mark-up fees for forex transactions compared to credit cards, making them less favourable for international purchases. Furthermore, debit cards typically provide fewer protections and dispute resolution options compared to credit cards, which can complicate the process of handling refunds and chargebacks. Moreover, debit cards generally offer fewer rewards, perks, and benefits compared to credit cards, such as cashback rewards, travel rewards, and purchase protection. Lastly, debit cardholders may have limited access to travel-related benefits like insurance coverage, airport lounge access, and reward points accumulation, making them less suitable for frequent travellers seeking such amenities.
Credit Cards
Credit cards provide a convenient means of payment for transactions, including cash withdrawals from ATMs abroad, although fees may be incurred for such transactions. Similar to debit cards, credit cards also entail a mark-up fee for forex transactions, over and above the exchange rate at the time of purchase. However, neither credit nor debit cards offer protection against currency volatility, as transactions are susceptible to fluctuating exchange rates. Nonetheless, credit cards typically offer robust fraud protection measures, limiting liability for unauthorised transactions. Additionally, many credit cards offer exciting rewards programs, including reward points or cashback on international transactions. Furthermore, credit cards often provide access to an array of travel-related benefits, such as airport lounge access, travel insurance coverage, and concierge services, enhancing the travel experience for cardholders. Moreover, credit cards can serve as a backup payment option in case of insufficient funds or technical issues with forex cards, adding to their versatility and utility for travellers.
Dynamic Currency Conversion (DCC)
During a forex transaction, some credit cards may provide the option to pay INR or local currency. If you choose INR then no forex markup but there will be DCC% +GST. And if you choose local currency then there will be a forex markup charge + GST. Merchants may offer to convert transactions to your home currency, often at poor exchange rates. Opting for DCC can result in higher costs compared to letting the card network handle the conversion.
Forex Cards
Forex cards offer a secure and convenient alternative to cash and traveller’s cheques, providing ease of use for international travellers. However, they come with certain fees and limitations that users should be aware of. These include issue charges and currency loading fees, as well as charges for cash withdrawals from ATMs and cross-currency transactions fees. Additionally, forex cards typically incur markup fees and conversion charges, which are levied on the entire amount at the time of loading, regardless of whether it is fully utilised. It’s important to note that exchange rates may vary among different forex cards, and currency conversion charges may apply when converting the remaining balance back to INR. While forex cards do not offer complimentary airport lounge access, they do lock in the current exchange rate, which can be advantageous or disadvantageous depending on currency fluctuations at the time of use.
Zero Forex Markup Debit Cards
Choosing the right debit card with zero forex markup can significantly enhance your travel experience by saving you money on foreign transactions. The cards listed below offer excellent benefits, including competitive exchange rates, global acceptance, and additional travel perks such as International Airport Lounge Access etc. Before selecting a card, consider your travel needs and the associated benefits to ensure you get the best value.
Niyo Global Card
Niyo Global Card stands out for its zero forex markup on international transactions. This card is particularly designed for travellers, providing seamless access to global ATMs and offering competitive exchange rates. It also comes with a user-friendly app to manage your finances on the go.
- Zero balance account
- Issuance Fee: NIL
- Annual Fee: NIL
- Accepted in more than 180 countries.
- Card Issuance fee is refunded on maintaining Quarterly Average Balance (QAB) of 5000
- Partner Banks: SBM Bank, Equitas Small Finance Bank DCB Bank
- Get 250/- free credit by applying from this link.
- https://goniyo.com/forex-card/
RBL Bank Signature+ Debit Card
- Eligibility: Savings account with RBL
- Issuance fee: 5000+GST
- Annual fee: 1500+GST (waived off on spends of INR 3 Lakhs)
- https://www.rblbank.com/personal-banking/cards/debit-cards/signature-plus-debit-card/?tabName=what-you-get
Indusind Bank VISA Signature Exclusive Debit Card
- Eligibility: Indus Exclusive Savings Account with AQB of 1 Lakh to 2 Lakh (depends on your location)
- Issuance Fee: NIL
- Annual Fee: NIL
- Unlimited Free International ATM Withdrawals
- Air Accident Insurance: 30 Lakh
- Lounge Access: Two times per quarter
- https://www.indusind.com/in/en/personal/cards/debit-card/signature-exclusive-visa-debit-card.html
Indusind Bank World Exclusive Debit Card
- Eligibility: Indus Exclusive Savings Account with AQB of 1 Lakh or 2 Lakh (depends on your location)
- Issuance Fee: NIL
- Annual Fee: NIL
- Air Accident Insurance: 30 Lakh
- Lounge Access: Two times per quarter
- https://www.indusind.com/in/en/personal/cards/debit-card/world-exclusive-debit-card.html
Indusind Bank Pioneer Infinite Debit Card
- Eligibility: PIONEER Savings Account with AQB of 10 Lacs
- Issuance Fee: NIL
- Annual Fee: NIL
- Lounge Access: Three times per quarter (Visa) or Two times per quarter (Mastercard)
- https://www.indusind.com/in/en/personal/cards/debit-card/pioneer-world-debit-card.html
INDIE Mega Star Account – VISA Signature Card
- ZERO debit card charges.
- Issuance Fee: NIL
- Annual Fee: NIL
- Unlimited Free Cash Withdrawals at any domestic ATMs.
- https://indie.indusind.com/indie/plan-and-charges.html
Fi Money Debit Card
- Partner Bank: Federal Bank
- Eligibility: Working Professionals
- Account Balance : Minimum 50,000/-
- Issuance Fee: NIL
- Annual Fee: NIL
- https://fi.money/fees
Zero Forex Markup Credit Cards
Zero forex markup credit cards eliminate additional fees on international transactions, offering significant savings and convenience for travelers. These cards provide benefits like better exchange rates, no additional charges, widespread acceptance, and enhanced security. They also often come with travel perks such as insurance, airport lounge access, and reward points on foreign spends. While some may have higher annual fees and eligibility criteria, the cost savings and added benefits make them a valuable choice for frequent travelers. Here are some of the best credit cards in India with zero forex markup fee.
RBL World Safari Credit Card
- Zero mark up
- Issuance Fee: 3000 +GST
- Annual Fee: 3000 +GST
- No rewards points for the international transactions.
- Issuance Fee: NIL
- Annual Fee: NIL
- Lifetime Free: Yes
- Lounge Access: Two per quarter (domestic airports), Two per quarter (international airports)
- https://www.rblbank.com/personal-banking/cards/credit-cards/world-safari-credit-card/?tabName=welcome-benefits
IDFC FIRST WOW! Credit Card
- Assured Card (Based on FD)
- No CIBIL score required
- Issuance Fee: NIL
- Annual Fee: NIL
- Lifetime Free: Yes
- https://www.idfcfirstbank.com/credit-card/wow/traveller
Scapia Credit Card
- Partner Bank: Federal Bank
- Eligibility: Not having a federal bank credit card
- Issuance Fee: NIL
- Annual Fee: NIL
- Lifetime Free: Yes
- Lounge Access: Unlimited if monthly spends exceeds Rs 5,000
- No reward points for forex spending
- https://www.federalbank.co.in/scapia
Ixigo AU Credit Card
- Partner Bank: AU Bank
- Eligibility:
- Issuance Fee: 999 +GST (waived if Rs 1000 is spent in first 30 days)
- Annual Fee: 999 +GST
- Lifetime Free: No
- Lounge Access: One per year (international); 16 (domestic) per year
- No reward points for forex spending
- https://www.aubank.in/personal-banking/credit-cards/ixigo-au-travel-credit-card
Club Vistara IndusInd Bank Explorer
- Joining fee: 40,000
- Annual fee: 10,000
- Markup: 0%
- Lounge Access: Four per quarter (international airports), one per quarter (Domestic airports)
- Free business class tickets: Upr to 5 per year on spending Rs 3 lakhs to Rs 15 lakhs
- Complimentary club vistara gold tier membership
- Air Accident Insurance: 2.5 Crore
- https://www.indusind.com/in/en/personal/cards/credit-card/club-vistara-indusInd-bank-explorer-credit-card.html
Axis One Card / Burgundy Private Credit Card
- Eligibility: Difficult to get
- Joining fee: NIL for Burgundy Private customers (5 crore), otherwise 50,000
- Lifetime Free: No
- Lounge Access: Unlimited (international) using Priority Pass; Unlimited (domestic)
- https://www.axisbank.com/burgundyprivate/creditcard
Zero Forex Markup Forex Cards
Zero forex markup forex cards are a smart choice for anyone looking to travel abroad without incurring extra costs on currency conversions. Forex cards often allow users to load multiple currencies at fixed exchange rates. This feature protects against currency fluctuations. These cards offer convenience through global acceptance, enhanced security features, travel related insurance etc. Below are some forex cards offered in India.
BookMyForex Travel Card
- Zero issuance charge
- Zero reloading charge
- Zero unloading charge
- Zero annual/inactivity charge
- 14 currencies
- Free International SIM Card
- https://www.bookmyforex.com/forex-card/
HDFC Multicurrency Platinum ForexPlus Chip Card
- 22 currencies
- Cross currency Mark-up Fee: 2% + GST
- Card issuance Fee: INR 500 + GST
- Reload Fee: INR 75 + GST
- Eligibility: Ticket or Visa
- https://www.hdfcbank.com/personal/pay/cards/forex-cards/multicurrency-platinum-forexplus-chip-card
HDFC Regalia ForexPlus Card
- Cross currency Mark-up Fee: NIL
- Card issuance Fee: INR 1000 + GST
- Reload Fee: INR 75 + GST
- Lounge Access: Two per quarter (in India)
- https://www.hdfcbank.com/personal/pay/cards/forex-cards/regalia-forex-plus-card
Final Remarks
In concluding remarks on the best cards for foreign travels, it’s crucial to consider potential changes in the terms and conditions of benefits offered by these cards. It’s advisable to thoroughly review the official link of the card you’re interested in before making a final decision. It will ensure that you’re aware of any updates or modifications to the benefits. Additionally, having another card as a backup is highly recommended, especially given reports of network issues with certain cards like Niyo Global and Scapia etc in abroad. Having an alternative card on hand can help mitigate any potential disruptions in service and ensure smooth transactions during your travels.