Zero forex markup card.
Most travel credit cards charge up to 5% forex markup, hidden within the exchange rate, so you barely notice it. On a â¹2 lakh trip, that's around â¹10,000 lost, and rewards rarely offset it. "International" cards only mean global usability, not cost efficiency. Dynamic currency conversion can further increase costs at poor rates, making a strong case for switching to a zero forex markup card, where even one international trip a year can lead to clear, measurable savings.
Over 30 million Indians travelled abroad in 2024, and this number is expected to grow steadily in the coming years. Most of them carried the best travel credit card, and most ended up paying more than necessary on every transaction, often losing up to 5% to hidden forex markups. This is not about using the wrong card; it is about using one that wasn't designed for international spending, even if it appears to be.
These small percentage losses compound quickly over flights, hotels, dining, and shopping abroad. What feels negligible per swipe can translate into thousands lost over a single trip. Understanding this distinction can make a meaningful difference to your overall travel budget.
When you use a credit card abroad, your bank converts the foreign currency amount to Indian Rupees. The rate applied is not the mid-market rate you see on Google. Banks add a percentage to that rate to cover conversion costs and earn a margin. This is the forex markup fee.
Most cards charge between 3% and 5% on every international transaction. It applies to every hotel booking, every restaurant bill, every transport payment made in a foreign currency. Reward points earned on those same transactions rarely offset this cost. For most cardholders, the net result is a loss, even if the rewards programme appears generous on paper.
Many travellers assume that a card marketed as an international credit card will automatically offer favourable terms for foreign spending. This is a common misconception.
"International" simply means the card is accepted outside India. It says nothing about the cost of using it abroad. A card might offer airport lounge access, travel miles, and acceptance in multiple countries, and still charge a high percentage on every foreign transaction.
The best credit card for international travel, then, is not the one with the most perks. It is the one with the lowest total cost of use while you are actually travelling. Before your next trip, check your card's schedule of charges and look for the "forex markup" or "foreign currency transaction fee". If the rate is not 0%, you are paying extra on every purchase made abroad.
At many international hotels, restaurants, and ATMs, you may be asked whether you want to pay in Indian Rupees or the local currency. Paying in rupees, known as dynamic currency conversion, seems convenient, but is almost always the more expensive option.
When a foreign merchant handles the currency conversion, they apply their own exchange rate, which is typically less favourable than your bank's rate. If your card also charges a forex markup, you effectively pay twice on the conversion. The correct approach is straightforward: always choose to pay in the local currency and let your card process the conversion.
The forex markup does not appear as a separate line item on most statements. It is absorbed into the exchange rate applied to each transaction. You see the rupee equivalent and move on, unaware of the additional cost embedded in that figure.
This is why many travellers continue using the same card for years without realising how much they are paying in conversion costs. Awareness is the first step toward making a better choice.
If you travel internationally frequently, here are some important features to look for:
Pick a zero forex markup credit card that not only works abroad, but keeps your overall costs low while you spend seamlessly.
Niyo's zero forex markup card is one such card built for frequent travellers. It applies no additional markup on foreign transactions, giving you the live exchange rate on every swipe. The card operates on the VISA network and is paired with an app for real-time spending visibility and card controls, a practical option for anyone looking to reduce the hidden costs of international spending.
Choosing the right card is the most important step when you are travelling abroad. Beyond that, one consistent habit that makes a noticeable difference is always paying in local currency when abroad. For larger purchases, accommodation, tours, and dining, the savings from avoiding markup can be significant. Travel is supposed to feel like freedom. A card that quietly charges you for using it abroad is the opposite of that. The fix is simple; you just need to know where to look.
