Using Credit Cards Abroad
Credit cards are convenient when traveling because they’re safer than cash. Many credit card companies offer deals for international use, making them a popular choice for travelers.
Understanding Foreign Transaction Fees:
Whenever you use your card abroad, your bank and the card network charge a fee for currency conversion. This is known as a foreign transaction fee. Typically, this fee is around 1% to 3% of the transaction amount. For example, if you spend $1000, you might be charged an extra $10 to $30.
Zero Foreign Transaction Fee Cards in India:
Many credit cards in India charge a fee for foreign transactions. But some cards don’t! Here are a few:
RBL World Safari Credit Card:
-
- No fees on foreign transactions
- Earn travel points and get a voucher worth Rs. 3000
- Offers travel insurance for various situations
Club Vistara IndusInd Bank Explorer Credit Card:
-
- No fees on foreign transactions
- Comes with complimentary Club Vistara Gold Membership
- Offers additional benefits like a business class ticket voucher
Axis Burgundy Private Credit Card:
-
- No fees on foreign transactions
- Exclusive benefits for high net worth individuals
- Offers travel insurance and other lifestyle perks
Why Check Foreign Transaction Fees?
These fees can add up, especially if you shop frequently from international sites. Choosing a card with no or low foreign transaction fees can save you a significant amount of money.
Things to Remember Before Getting a Credit Card for Your Trip:
- Most credit cards charge foreign transaction fees, so compare before choosing.
- Online purchases from overseas vendors can also incur these fees.
- Be aware of the difference between foreign transaction charges and currency conversion fees.
