Foreign Exchange conversion charges are perhaps one of the biggest fee-based charges in the life of a traveller. Over a decade and a half ago, I moved largely to forex spending on credit cards, charges or no charges, when I had my pocket picked in Paris, of all places. On my first trip there, I did not know that you could get your pocket picked so easily there.
Whenever I’ve been out of the country, most of my spending since then has been on credit cards and, occasionally, forex cards and debit cards. Credit Cards are easy to manage, easier to dispute if something goes wrong, involve purchase protection, and there have been trips where I’ve not needed cash at all. However, the 3.5% + GST forex interchange fee is a bummer. Credit cards with lower fees have been introduced in the past decade, but only recently have there been credit cards that went to zero interchange fees.
The consequence, however, has been that these zero interchange fee credit cards have also cut off the ability to earn points on them. Having said that, some cards still allow points to be earned on international spending on your INR-denominated credit cards. As I mentioned in my credit card usage strategy the last time around, I end up using the non-rewarding credit cards for the small stuff (think groceries, train tickets and other consumables) and the higher-end cards of mine such as American Express Platinum Card for the stuff I need to bring back, or the higher ticket items and so on.
Here is a list of all the credit cards that offer a free interchange when you spend abroad.
RBL World Safari Credit Card
RBL Bank launched the World Safari Credit Card a few years ago. It became the first credit card offered in the mass market with a Zero Forex Markup Fee. The card offers a points system: You earn 5 points/INR 100 spent (worth INR 1.25) on travel spending and 2 points/INR 100 spent (worth INR 0.5) on non-travel spending. The card also comes with free travel insurance from CARE, which includes personal liability coverage, trip delays, baggage loss, loss of passport, and dental treatment. The card is worth INR 3,000 + GST per annum in terms of fees, but you also get a MakeMyTrip voucher worth INR 3,000 in the first year.
IDFC First Bank’s WOW Credit Card (Lifetime Free)
IDFC First Bank’s WOW Credit Card is a lifetime-free credit card. This is a secured credit card, which means it does not need income proof or a credit history to be issued. Instead, you need to open a fixed deposit with the bank, which decides your credit limit. You get Reward Points that never expire, worth INR 0.25 each. The card offers a 50% discount on movie tickets and many other perks.
Apply For the IDFC First WOW Credit Card
ixigo AU Credit Card
The ixigo AU Credit Card has been offered lifetime free with a zero forex markup fee. On activating the card, you get INR 1000 worth of travel credit, which is usable on the ixigo platform for travel bookings. You get a 10% discount on flight, bus and hotel bookings with the ixigo platform (cappings apply). What is better is, that this card also earns you ixigo points (one point = 0.5 INR) even on foreign exchange spending.
Apply for an AU Bank Credit Card here
Yes Bank uni Credit Card
Yes Bank and Uni came together to launch a co-branded credit card in 2023 called the Yes Bank uni credit card. This lifetime free credit card offers 1% Cashback on spending and a zero-forex markup.
Federal Scapia: Lifetime Free
Federal Bank partnered with Scapia to launch the Scapia Credit Card on the Federal Bank platform in 2023. This lifetime free credit card comes with all sorts of features that a traveller might require or desire. Cardmembers earn Scapia coins when they swipe the card and extra earnings on travel bookings made via the Scapia App. Using the accumulated Scapia Coins, one can book flight tickets or hotels. You can only apply for the card via the Scapia app.
Fi AmpliFi
The Fi AmpliFi credit card is another co-branded card product issued by Fi Money, a neobank that works with Federal Bank as the issuing platform. The card has been around for over a year, and you need to download the Fi Money app to apply for it. The card offers an accelerated 3% reward on 20+ brands (including Zepto, Vistara and Cleartrip), apart from a zero forex markup fee. Plus, there are milestone rewards for spending INR 2.5 Lakhs per annum and then INR 4 Lakhs per annum.
Club Vistara IndusInd Explorer Credit Card
The Club Vistara IndusInd Explorer Credit Card is the only co-branded credit card on the list with a tie-up with an airline loyalty programme. The card has a high entry fee, at INR 40,000 + GST, but the bank gives you a free domestic business class ticket, INR 25,000 worth of vouchers and Vistara Gold status for a year. The card offers zero forex.
Apply for an IndusInd Bank Credit Card
Axis Bank Burgundy Private Credit Card
This credit card is free, but only for Axis Bank’s private banking customers, where the Total Relationship Value could be upwards of INR 5 Crores. No markup on foreign exchange transactions is one of the many features this credit card offers, apart from complimentary golf, dining and wellness benefits.
Apply for an Axis Bank Credit Card here
What other credit cards offer free forex conversion? Do share your insights in the comments section below.
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Slightly off-topic but does it make sense to sign up for Global Value program for Infinia/DCB or is it still beneficial to charge all forex transactions on Citi Prestige?
Vistara explorer has starred levying 1% DCC charges. i.e. Dynamic Currency Conversion charges.
@Gaurav, I think you are confusing Dynamic Conversion with Forex Charges. One is levied when you pay in INR denomination on a foreign transaction, and the other is charged when you pay in the other country’s currency and the credit card issuer converts it into INR before putting it on your invoice.
Hi Ajay,
Not sure if zero markup is necessarily the right choice. Each bank has its own way to make money! I continue to use my hdfc infinia credit card for foreign spends. I earn 3.33% in reward points and pay 2% mark up charges, effectively earning 1.33% points worth INR 1.33! At times hdfc runs campaigns that zero markup upto spends of $2024 currently. Also my spends help with the yearly limits as well. But hdfc has been lowering the benefits, so this post is a good one to educate oneself with options available!
@Deccan, I did not say that Zero Markup is the right choice or wrong. I myself use a mix of both approaches. That $2024 campaign was sponsored by Visa, not by HDFC Bank.
HDFC returns 1% of forex spend as cashback if you enroll for Global Value program. You will effectively earn more than 2% on forex transactions.
Hi Ajay, when u say it’s a zero markup, you mean that the transaction is booked at InterBank rate?
@S C, at the Visa or MasterCard rate, which changes in line with the Interbank rate every day. Though I haven’t bothered to mirror them every day, I think the difference is minor. Regardless, these are close to the best rates you’d get.