International transactions often carry an extra cost that many cardholders dread: a foreign currency mark-up. In India this typically adds around 3.5% to the transaction value, increasing the overall expense of overseas purchases. While credit card issuers in the US and other regions frequently offer cards with no mark-up fees, Indian issuers have been slower to adopt similar policies.
That said, there are a few options that reduce international spending costs. The IndusInd Bank Exclusive Signature Debit Card stands out because it charges 0% mark-up on foreign currency transactions, making it a strong choice for international purchases when available. Among credit cards, the Yes Bank First Credit Card family is notable for charging a lower-than-average mark-up of 1.75%. For a limited time, Yes Bank has launched a promotion that adds an additional flat 1% cashback on international spends.
- Must Read: 7 Best Indian Credit Cards for Foreign Currency Spends
Yes Bank: 1% Cashback on International Spends
- This promotion runs from 24 April 2017 to 20 June 2017.
- There is no minimum spend requirement to earn the 1% cashback.
- The maximum cashback you can earn during the offer period is ₹1,000.
- You continue to earn the card’s regular reward points. For example, the Yes First Exclusive Credit Card earns 10 Reward Points per ₹100 spent on international transactions, which effectively translates to around 2.5% value in rewards.
- Spends on add-on cards are also eligible for the 1% cashback and for reward points.
Although the promotional email I received specifically mentioned the Yes First Exclusive Credit Card, the terms and conditions refer broadly to Yes Bank credit cards. This suggests the offer may apply to all Yes Bank credit cardholders. Keep in mind, however, that most Yes Bank credit cards still apply the standard mark-up fee of 3.5% unless otherwise stated.
How this benefits you
Take the Yes First Exclusive Credit Card as an example. If the mark-up is 1.75% plus any service tax (roughly about 2% total), you would offset much of that cost by earning both rewards and cashback: approximately 2.5% in reward value plus 1% cashback. In this scenario your net saving is meaningful.
Estimated net benefit: 2.5% + 1% – 2% = 1.5% (with the Yes First Exclusive Credit Card)
Note: The IndusInd Exclusive Signature Card’s 0% mark-up feature is attractive, but it is a debit card. Debit cards do not provide the same dispute protections that credit cards do, so you may have less recourse in case of fraud or merchant disputes. Credit cards typically allow chargebacks and other dispute mechanisms, offering greater consumer protection.
If a merchant accepts PayPal, using the IndusInd Exclusive Signature Debit Card via PayPal can be a safe option because PayPal provides additional buyer protection. However, if you must provide card details directly to a merchant and you have any doubts about the merchant or the transaction, a credit card is usually the safer choice.
Similar past promotions on international spends:
- 1% Cashback on Markup Fee on International Spends with HDFC Visa Credit Cards
- 1% Markup on International Transactions: SBI Credit Card offer
- Earn 3 Amex Bonus Points on International Spends
Do you make international purchases often? Which cards or strategies do you use to minimize foreign exchange costs? Would this Yes Bank offer be useful to you? Share your thoughts in the comments so we can all learn from each other.