Forex Markup
An additional fee charged by banks on transactions made in foreign currencies, typically ranging from 1% to 3.5% of the transaction amount.
What is Forex Markup?
Forex markup (also called currency conversion markup or cross-currency charge) is an additional fee that your credit or debit card issuer charges when you make a transaction in a currency other than Indian Rupees. This applies to both international purchases and online transactions with foreign merchants.
How Forex Markup Works
When you pay in a foreign currency, the bank converts it to INR at the prevailing exchange rate and adds a markup percentage on top. This fee is not always transparent on your statement.
Example: You spend $100 (approximately ₹8,300) abroad.
- Exchange rate markup: 3.5%
- Fee charged: ₹8,300 × 3.5% = ₹290.50
- Total charged to your card: ₹8,590.50
Forex Markup Rates by Card Network
| Network | Typical Markup |
|---|---|
| Visa | 1% – 2% |
| Mastercard | 1% – 2% |
| RuPay | 0% – 1% (domestic network) |
| Amex | 2% – 3.5% |
On top of the network fee, banks add their own markup. The total forex markup for most Indian credit cards ranges from 2% to 3.5%.
Cards with Low or Zero Forex Markup
A few Indian cards are specifically designed for international travellers:
- Niyo Global Card: 0% forex markup (debit card)
- AU Small Finance LIT Card: 0% forex markup (credit card)
- Scapia Credit Card: 0% forex markup
- BookMyForex Card: Interbank rate with minimal markup
Other Charges on International Transactions
Beyond the forex markup, international transactions may also include:
- GST on the markup amount (18%)
- Cash advance fee for ATM withdrawals abroad (typically 2.5%)
- Dynamic Currency Conversion (DCC) — always decline this and pay in local currency to avoid an extra 3-4% charge
How to Minimise Forex Charges
- Use a zero-forex card for international travel and online foreign purchases
- Always pay in local currency — never accept Dynamic Currency Conversion (DCC)
- Avoid ATM withdrawals abroad unless your card waives the cash advance fee
- Compare cards on our card comparison tool filtered by forex charges
Related Terms
Annual Fee
The yearly charge levied by the bank for maintaining and providing the benefits of a credit or debit card.
Cashback
A reward mechanism where a percentage of your spending is returned to you as real money, either as a statement credit or direct deposit.
Reward Points
A loyalty currency earned on card transactions that can be redeemed for merchandise, vouchers, travel bookings, or statement credits.