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Beat Forex Fees: Best Credit Cards that offset mark-up fee with Rewards

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helloworld

helloworld

TF Legend
IMO, when it comes to credit cards, >0% rewards is always better than 0%, especially when dealing with mark-up fees (foreign transaction fee)! :light-bulb:

I wanted to share some tips for those of you who frequently travel or make purchases from international websites. You might already know that many credit cards charge a foreign transaction fee (usually 4.13%) whenever you buy something in a different currency. Unfortunately, these fees can eat into any rewards or cashback you’re hoping to earn. :crying-face:

There are credit cards that still provide positive rewards even after these fees, meaning you can earn more than what you pay in fees.

# How it works?
Sample:

helloworld

Post in thread 'Credit card suggestion for international Payment'

1. Convert that USD to INR (usually consider settlement date conversion rate).

440 USD = 35928 Rs. (assuming 1 USD = 81.65 Rs.)

+

2. Add markup fee and corresponding GST

(amount × markup fee of that card) + GST

35928 x 3.5% = 1257.48 + 18% GST = 1483.83 (4.13%)

3. Amount you're paying overall in INR.

~ 37422 Rs. you're paying.


SBI Cashback mostly will give 5% unless that certification site report as Utility in that case 1%.

Note: Same process for both Credit and Debit Cards, and not all Credit and Debit cards charge 4.13%. There are cards with 0% markup-fee.
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# How to choose >0% Card Rewarding After Forex Fees?

  • High Reward Rates: Credit cards should provide higher reward rates than they charge as mark-up fee.
  • Forex Mark-up Waiver: Some cards reduce mark-up fee from 2% to 0%.

# Credit Cards Offering Positive Rewards After Forex Fees:
Note: Below reward rate is minimum value that you can obtain with that card, more definitely possible if transferred for Miles (2x more value) or depends on redemption.

Credit CardReward Rate on International PurchaseForex Mark-up Fee (incl. GST)Net Return
BOB Eterna3.75% (Cashback)2.36%1.39%
YES Reserv*6% (Flights/Hotels) w/3x subscription
3% (Flights/Hotels) w/out subscription		2.07%3.93% // 0.93%
YES Marquee*4.5% (Flights/Hotels)1.18%3.32%
AU Zenith+2% (Voucher/Flights/Hotels)1.18%0.82%
AU Zenith2.5% (Voucher/Flights/Hotels)2.36%0.14%
StanC Ultimate3.33% (Marriott/ITC Vouchers)2.36%0.97%
HDFC Infinia / DCB Metal3.33% (Flights/Hotels) w/out subscription
4.33% (Flights/Hotels) w/GVP subscription		2.36%0.97% // 1.97%
HDFC Millennia / Swiggy5% (Cashback)4.13%0.87%
SBI Cashback5% (Cashback)4.13%0.87%
IDFC Wow0.67% (Vouchers)0%0.67%
IDFC Ashva1.25% (Vouchers) on 40k spends1.18%0.07%
IDFC Mayura1.25% (Vouchers) on 40k spends0%1.25%
AMEX Platinum Travel*5.43% (Vouchers) on 4L spends4.13%1.3%
AXIS Atlas*~5% (Flights/Hotels) on 5L spends4.13%0.87%
HDFC Regalia Gold*~5% (Flights/Hotels) on 5L spends2.36%2.67%

* Additional Info:
- YES Reserv vs Marquee reward rate: https://www.technofino.in/community/threads/yes-marquee-vs-yes-reserv-3x-vs-yes-reserv-5x.24652/
- AMEX cards reward rate: https://www.technofino.in/community/threads/amex-mrcc-vs-gold-vs-travel-vs-reserve.30606/
- Atlas vs Regalia Gold reward rate: https://www.technofino.in/community/threads/atlas-vs-regalia-gold-vs-horizon.26500/

More value can be obtained with some milestone cards: https://www.technofino.in/community/threads/credit-cards-with-quarterly-annual-milestones.2491/

These are just a few options, but I’d love to hear what cards you all use for international purchases! Are there any other great cards that help you come out ahead even with forex fees?
 
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One Card is a dark horse in the above mentioned list. Easy to get,no charges and almost everytime zero charges on foreign expenses
 
Andy1 said:
One Card is a dark horse in the above mentioned list. Easy to get,no charges and almost everytime zero charges on foreign expenses
Click to expand...

I prefer SBI Cashback or HDFC Swiggy/Millennia. Same, IMO easy to get and higher returns for all transactions cumulatively.

But, as checked Onecard has 1.18% mark-up fee for international purchases and provide only 1%, so net will be negative. Do share your experience especially that 0 charges on foreign expenses. TIA.
 
helloworld said:
I prefer SBI Cashback or HDFC Swiggy/Millennia. Same, IMO easy to get and higher returns for all transactions cumulatively.

But, as checked Onecard has 1.18% mark-up fee for international purchases and provide only 1%, so net will be negative. Do share your experience especially that 0 charges on foreign expenses. TIA.
Click to expand...
SBI cashback won't give 5% cb on educational spends. So not useful in paying fees of overseas educational institutions
 
Axis Olympus should be high up there with 8 partner miles for 100 Rs spend, if one has it or when it becomes available for gen pop.
Axis Magnus burgundy also cuts it with 4.8% partner miles and 2.36% forex markup.
 
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