Best credit cards for international transactions from India (2026): forex markup compared

Short answer: the cheapest Indian credit card to use abroad or on a dollar website is one with a zero forex markup. A standard card adds a markup of around 3.5% to every foreign-currency transaction, and GST at 18% is charged on that markup, so the real cost is a little over 4%. A zero-markup card removes both.

The table below is generated from our card catalog, so it cannot drift from the card pages. Cards whose figures we have not yet checked against the issuer say so in the last column.

What a foreign swipe costs, line by line

Three charges can land on one international transaction:

1. The network rate. Visa, Mastercard or RuPay convert the foreign amount to rupees at their own daily rate. Every card pays this, including zero-markup cards. It is close to the interbank rate, not identical to it.
2. The forex markup. Your bank adds a percentage on top. This is the number that varies by card and the one this guide compares.
3. GST on the markup. GST at 18% is charged on the markup amount, not on the whole purchase.

A worked example on ₹1,00,000 of foreign spend:

On a family holiday or a year of dollar software bills, that gap is real money.

The dynamic currency conversion trap

Abroad, a card machine or a website will often offer to charge you in rupees. Say no and pay in the local currency.

When you accept rupees, the conversion is done by the merchant's bank at a rate it chooses, usually worse than your card network's rate. Your own bank may still treat the transaction as international and add its markup on top. Choosing the local currency keeps the conversion with your card network, which is the cheaper path on almost every card.

Zero markup is not the whole story

A zero-markup card is the right default for foreign spend, but check three things before you make it your travel card:

• Rewards on international spend. Some issuers pay fewer points on foreign transactions, or none. A card with a small markup and strong international rewards can beat a zero-markup card that earns nothing. Read the reward terms on the card page before you assume.
• Income requirements. Several of the zero-markup cards above are premium cards with high stated income requirements. The table shows the figure where we have it.
• Lounge and travel perks. Many issuers now unlock lounge visits only after a minimum spend in the previous month or quarter. Our lounge access hub quotes each card's own lounge terms.

Cash abroad: avoid the credit card

Withdrawing cash on a credit card counts as a cash advance almost everywhere. You pay a cash advance fee, and interest usually starts from the day of withdrawal with no interest-free period. For cash abroad, a forex card or a zero-markup debit card is cheaper.

Recent changes worth knowing

• IDFC FIRST removed the forex markup on all its credit cards in 2026, including existing cards. Read the change.
• HSBC India ran a one-month zero-markup window in August and September 2026. It was promotional, not permanent. Read the change.

Markups change. Before a big trip, check the card's Most Important Terms and Conditions document, which every Indian issuer publishes, for the current figure.

Related

• Forex markup calculator: put in your foreign spend and see the cost on each card.
• Best cards for foreign spend
• Forex markup explained