IMO, when it comes to credit cards,
>0% rewards is always better than 0%, especially when dealing with mark-up fees (foreign transaction fee)!
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.
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:
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.
# 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 Card | Reward Rate on International Purchase | Forex Mark-up Fee (incl. GST) | Net Return |
|---|
| BOB Eterna | 3.75% (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 Zenith | 2.5% (Voucher/Flights/Hotels) | 2.36% | 0.14% |
| StanC Ultimate | 3.33% (Marriott/ITC Vouchers) | 2.36% | 0.97% |
| HDFC Infinia / DCB Metal | 3.33% (Flights/Hotels) w/out subscription
4.33% (Flights/Hotels) w/GVP subscription | 2.36% | 0.97% // 1.97% |
| HDFC Swiggy (Online Only) | 5% (Cashback) | 4.13% | 0.87% |
| SBI Cashback (Online Only) | 5% (Cashback) | 4.13% | 0.87% |
| IDFC Wow | 0.67% (Vouchers) | 0% | 0.67% |
| IDFC Ashva | 1.25% (Vouchers) on 40k spends | 1.18% | 0.07% |
| IDFC Mayura | 1.25% (Vouchers) on 40k spends | 0% | 1.25% |
| AMEX Platinum Travel | 5.43% (Vouchers) on 4L spends | 4.13% | 1.3% |
| AXIS Atlas* | 5%+ (Flights/Hotels) on 5L spends | 4.13% | 0.87%+ |
| HDFC Regalia Gold | 5%+ (Flights/Hotels) on 5L spends | 2.36% | 2.67%+ |
| AU Ixigo | 0.6% (Offline) / 1.2% (Online) | 0% | 0.6% (Offline) / 1.2% (Online) |
| | | |
Special Mentions (due to complicated factors, unavailability listed them below - consider after thorough check):
- AXIS Magnus for Burgundy: 4.8% (Miles) and 2.36% (Mark-up Fee) = 2.44%
- AXIS Olympus: 8% (Miles) and 4.13% (Mark-up Fee) = 3.87%
*
AXIS Atlas will have high value depends on miles/hotel transfer options, above is lowest value.
* 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/
^All cards work for both Online and Offline (except the one specifically mentioned as Online only).
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?
Still want 0% only
🙂
- RBL World Safari
- OneCard
- IndusInd Signature Exclusive (DC)
Edit : 05-12-2024.
In this case, the top tier metal card of IndusInd i.e. Pioneer Heritage Metal has got a bright spot.
With the recent changes in the card features, it offers ZERO Forex charges, and provides 2.5% rewards, which are fully redeemable in cash credit ratio of 1:1.
