Top Credit Cards in India for International Travel with Low Forex Fees

Last Updated: 8th Sep 2018

If you are planning your dream international vacation or frequently making purchases in foreign currencies online, choosing the right card matters. Most cards charge a Foreign Currency Markup Fee — typically around 3.5% plus GST — which effectively becomes close to 4% of your spend. That adds up quickly: a spend of Rs.100,000 can cost you about Rs.4,000 in markup alone. Since this is a significant revenue source for banks, it pays to pick cards with lower markup or rewards that offset the fee.

Best Credit Cards for International Transactions

Picking the right card can reduce markup fees and earn rewards that offset those charges. Below is a concise list of cards with relatively low foreign currency markup fees and their key features to help you choose.

1. HDFC Infinia Credit Card

• FCY Markup Fee: 2% + tax
• Reward Rate: ~3.3%
• Net Gains: ~1%
• Annual fee: Rs.10,000 + tax (waived for select profiles)

Infinia is a super-premium card with attractive foreign-spend benefits but is difficult to obtain. An alternative is the HDFC Diners Black, which has similar economics but faces acceptance issues abroad, making Infinia a safer choice for international travel.

2. Citibank Prestige Credit Card

• FCY Markup Fee: 3.5% + tax
• Reward Rate: 4% – 10% for Citi Gold clients
• Net Gains: 0% – 6% (for Citi Gold)
• Annual fee: Rs.20,000 + tax

Citigold customers benefit from improved reward rates. If you maintain the required relationship balance to qualify for Citi Gold, foreign spends can yield meaningful value; otherwise savings may be limited unless you optimize airmiles and hotel point redemptions.

3. Yes Bank YESFirst Exclusive Credit Card

• FCY Markup Fee: 1.75% + tax
• Reward Rate: 2.5%
• Net Gains: ~0.5%
• Annual fee: Issued LTF (lifetime free) for limited period

This card is relatively easy to acquire via card-on-card applications if you have an adequate existing credit limit. The limited-period lifetime-free issuance makes it especially attractive for international spenders looking to reduce markup costs.

4. Yes Bank YESFirst Preferred Credit Card

• FCY Markup Fee: 1.75% + tax
• Reward Rate: 2%
• Net Gains: ~0%
• Annual fee: Issued LTF for limited period

Also straightforward to get on a card-on-card basis with a moderate existing limit. Many users appreciate this card’s accelerated point offers and the limited-period lifetime-free issuance.

5. HDFC Bank Regalia Credit Card

• FCY Markup Fee: 2% + tax
• Reward Rate: ~1.3%
• Net Gains: ~-1% (net loss)
• Annual fee: Often issued LTF for many users

Although Regalia may result in a slight net loss on foreign spends, its markup is still far better than many standard cards that charge around 4%. Regalia remains popular for its brand and premium features despite recent devaluations.

6. RBL Bank Icon Credit Card

• FCY Markup Fee: 3.5% + tax
• Reward Rate: 5% (with monthly cap)
• Net Gains: ~1%
• Annual fee: Rs.5,000 + tax

This card isn’t extremely widespread, but offers a good reward rate on international spend when you meet the monthly thresholds. Check the monthly caps and conditions to ensure you earn the accelerated points.

7. IndusInd Signature Legend Credit Card

• FCY Markup Fee: 1.8% + tax (limited-time offer)
• Reward Rate: ~2% on weekend spends
• Net Gains: ~0%
• Annual fee: Rs.10,000 + tax

Launched as a newer premium offering, this card has at times offered a reduced markup fee for limited periods. It can be valuable for those who time spends to align with promotional earning structures, such as weekend multipliers.

Bonus: ICICI Jet Sapphiro (Amex)

• FCY Markup Fee: 3.5% + GST
• Reward Rate: ~7% (with yearly cap)
• Net Gains: ~2.8% (in JPMiles, depending on redemption)
• Annual fee: Rs.5,000 + GST

For airmiles enthusiasts, this Amex card can be rewarding if you can consistently extract value from JPMile redemptions. Its benefits depend heavily on your ability to convert miles into equivalent value.

Caution: Reward rates above assume effective and timely redemption of points. If points are not redeemed optimally, expected savings can disappear.

Bottomline

While the cards listed are among the better options for international use, some travelers prefer a debit card with zero markup for cash withdrawals. For example, certain IndusInd debit offerings have promoted 0% markup for international ATM withdrawals for a fee, which can be cost-effective for a week-long trip.

A practical approach is to carry both a debit and a credit card: use the debit card for cash withdrawals and the credit card for card payments, especially in locations where you prefer the additional protections of a credit card. For online foreign-currency purchases, choose a card from the list above that matches your spending pattern and redemption preferences.

Which credit or debit card do you prefer for international transactions and travel? Share your experience in the comments below.