Credit Card charges on International Transactions

The use of credit cards has increased steadily in the last couple of years. Today, when almost every bank and financial institution is offering credit cards, the number of credit card issuers is increasing exponentially. As per recent data and stats for 2022, India has more than 75 million active credit card users. And why not? After all, paying through credit cards is an extremely simple process as you just need to swipe or tap to make the payment. Moreover, you get dozens of benefits by using them including convenience, reward points, cashbacks, etc.

Today, when the internet has made everything favourable, you can get credit cards issued directly from home without visiting any bank branch or financial institution. Whether you buy groceries, clothing, gadgets, electronics, or anything that you wish to have, you can use credit cards to make payments within a few seconds. Credit cards have not only revolutionised the banking world but have also transformed the way we shop and spend.

However, you also need to keep in mind that with credit cards, you also get expenses in several forms of charges. Most banks and institutions usually refrain from letting the user know about it. If you would not want to pay anything later, you must be aware of all these hidden charges. One of these significant charges is the international transaction charge. But what is that? When do you pay for it? Well, that’s what this read is all about. Scroll down and learn more about credit card international transaction charges, foreign currency markup fees, etc.

What are Credit Card International Transaction Charges?

As the name suggests, it is the charge or fee that you often need to pay while making international transactions with a foreign currency or a foreign bank on your credit card. Whether you are in a foreign land making offline payments or doing online payments from anywhere in the world, there is a standard foreign transaction fee on your credit card. Usually, the charge is 3%, though it completely varies from one credit card issuer to another.

Types of International Transaction Charges

The charges you would need to pay on international transactions may include any of the following:

• Currency conversion fee
• Foreign transaction fee
• International ATM fee (for overseas withdrawals)

Also Read: Best Credit Cards for Beginners in India

How Much Credit Cards Charge on International Transactions?

For MasterCard and Visa, the international transaction credit card fee is 1%, while for other payment networks, the charge levied is usually between 2% – 3% of the transaction amount. However, it is always recommended to check transaction charges beforehand with your credit card issuer in detail as several card issuing companies put additional charges on various kinds of international transactions. If you are not willing to pay any hidden charges on your transactions, make sure to know about all the charges before you start using your credit card.

How to Know About the Foreign Transaction Fee on My Credit Card?

To know about your foreign currency markup fee or foreign transaction fee, you can either directly call your bank or credit card issuer or you can simply check out the credit card agreement that you got at the time of credit card issuance. You can also find them mentioned in the monthly statements of your credit card. If nothing works out for you, you can also visit the nearest branch of the bank or financial institution with which you signed up for your credit card.

Also Read: Get Airtel Finance credit card without any joining fees!

How to Choose the Right Credit Card for International Transactions?

Whether it is an HDFC credit card, Kotak Mahindra Credit Card, SBI credit card, or any other kind of credit card, it is important to choose the right card for yourself.

• Check if your card is offering zero or low foreign transaction charges
• Your credit card must provide you with reward points or cashback, or other benefits on international transactions
• Check if your credit card is accepted offline as well as online in most countries
• Your credit card must offer you free access to international lounges across different countries
• Check if your credit card has partner restaurants, hotels, cafes, airlines, etc.

Ways to Prevent Yourself From Paying International Credit Card Charges

Well, nobody would want to happily pay these international credit card charges, however, you can still avoid them by:

• Using debit cards instead of credit cards
• Signing up for credit cards with zero international transaction charge
• Refrain from using international ATMs
• Exchange your money for foreign currency before you fly

Now, if you are looking for the right credit card for you, then the Airtel Axis Bank credit card from Airtel Finance will be incredible for you. Apply for it today, on the Airtel Thanks UPI app and make mega savings!