International spending is fairly common while travelling or making purchases from international shopping portals. Using traditional credit cards for these transactions can rack up high costs of foreign exchange and international transaction fees, making the purchase more dreary.
While a single swipe may not feel like a high cost, over time, these can accumulate, making a significant impact on overall spending.
What makes international credit card spending expensive?
When you swipe your Indian credit card abroad or on an international shopping portal, the transaction is converted to another currency. This exchange of currencies has a forex markup charge, usually 1.5%-3.5%, which is an additional cost.
Thus you end up paying more than the original purchase amount, which can cause significant budget deficits. Hence, opting for a zero-forex markup credit card is not just smart, but it also helps you save money.
What is a Zero Forex Markup Credit Card?
A zero forex markup credit card is a card specifically made for those travelling abroad or using international portals for purchases of goods or services. This credit card levies no additional fee to convert rupees into a foreign currency or vice versa. Only the exchange rate is used.
This helps the buyer pay only the exact cost of the product as per the card network’s prevailing exchange rate, eliminating the markup charges of foreign exchange.
Benefits of Zero Forex Markup Cards
A zero-forex markup credit card significantly brings down your overall international spending costs. This is particularly beneficial for frequent travellers, shoppers using international websites, and students living abroad for a short while.
A reduced credit card bill also makes up for savings and disciplined spending. No forex fee makes the credit card statement transparent and also helps in identifying and eliminating any silent or hidden charges included in spending internationally.
How to Choose the Correct Credit Card for International Use?
While a zero-forex markup credit card has its own advantages, there are several other factors that must be taken into consideration while choosing an international use credit card. Credit card features such as rewards, network, customer support and credit limits while using forex are significant to the choice of card.
Banks such as IDFC FIRST Bank offer credit cards like FIRST WOW, Mayura, Diamond Reserve and FIRST WOW Black that not only give zero forex benefits but also provide absolute transparency, international customer care support, and remote and digital support during loss of card or fraud, while on international shores.
Who Benefits The Most From Zero Forex Credit Cards
No, forex markup credit cards are best suited for:
- Indians travelling abroad frequently for business or leisure.
- Business professionals with international vendors.
- Shopping from international websites.
- Students studying abroad.
Making International Spending Stress Free
The actual value of a zero-forex-markup credit card lies in having absolute transparency and no silent costs that make your spending more expensive than it should be. They give the cardholder absolute control over their actual spending.
Banks like IDFC FIRST Bank offer zero forex markup credit cards designed especially for the global Indian, giving them a hassle-free and transparent international spending experience.
International use of credit cards must not be more expensive for the end consumer. Customers who travel and shop internationally must consider getting an international credit card that has no markup on forex, making their spending hassle-free and leading to long-term savings over traditional credit cards.
ThePrint BrandIt content is a paid-for, sponsored article. Journalists of ThePrint are not involved in reporting or writing it.