Forex Markup
A fee added by the card issuer on transactions billed in a foreign currency.
Markups usually run 0.99% to 3.5% plus GST, and apply to overseas online purchases too. Travel-focused cards and forex cards cut this materially for frequent international spending.
Why Forex Markup matters when comparing products
Understanding forex markup is crucial when comparing Indian credit or debit cards, especially for individuals making international transactions. This fee directly impacts the total cost of purchases made in foreign currencies, including online shopping from international websites. A lower markup can lead to significant savings over time, influencing the choice of a card for global spending needs.
Illustrative example
Consider a foreign transaction equivalent to INR 10,000. With a standard forex markup of 3.5%, the cardholder would incur an additional charge of INR 350. On top of this, GST would be applicable on the markup amount. If a card offers a 1% markup, the charge for the same transaction would be INR 100 plus GST, demonstrating the cost difference.