Should I get a Forex card or No markup DC

[sangalaviral]

Hi All,

I am going on a month long US trip and contemplating if I should use a Forex card or a No markup DC?

I have checked Bookmyforex and they are charging about 15p when loading and about 80p when unloading.

 

[anirban.choudhuryanirban.choudhury is verified member.]

At what rate (dollar currency) will be charged in credit card? Actual rate (like Google search results) or bank rates (higher usually)?

For cash (USD dollars), what should I do?

Google search results are just spot conversion , MC/Visa charges a fees over conversion . So you will be charged a visa conversion rate plus 1.5% idfc forex markup + 18% of that 1.5%
But you will earn 10 RP on spend of 100 Rs
That is 2.5 Rs back on spend of every 100 Rs
And for every 100 Rs you spend you will be charged 1.8 Rs approx so net profit should be 0.7 Rs

 

[ilavaeniyil]

Google search results are just spot conversion , MC/Visa charges a fees over conversion . So you will be charged a visa conversion rate plus 1.5% idfc forex markup + 18% of that 1.5%
But you will earn 10 RP on spend of 100 Rs
That is 2.5 Rs back on spend of every 100 Rs
And for every 100 Rs you spend you will be charged 1.8 Rs approx so net profit should be 0.7 Rs

Thanks.. I used this Visa currency converter website, https://www.visa.co.in/support/consumer/travel-support/exchange-rate-calculator.html




If this is the case, then its superb benefit. Based on today's rate, bank charges more than 83 rupees for loading money into forex card but while using Visa credit card, we are paying 82.6 rupees. Plus, we get reward benefits (in this case, 2.5rs cashback for 100 rupees).

 

[Ankur dhanda]

Hi guys, I am also travelling to US for 2 weeks on June month. I have HDFC Diners Black, IDFC First Wealth and ICICI Sapphiro cards. My hotel and flight will be paid by company. I need for travel (Lyft app) on some days, food + tips (meals on few days outside of company) and shopping (iphone, GoPro, dresses, etc.,). Also few colleagues traveling with me are taking Forex card anyway.

Should I take Forex card or use my Credit cards itself? At what dollars rate will be charged in credit card? Actual rate (like Google search results) or bank rates (higher usually)?
Also, I definitely need some cash (~100 dollars) in hand for emergency purpose.

DCB should be your first choice. Activate Global Value Program for 1% Cashback.
Net positive will be more than IDFC wealth. If at any place acceptance issue of DCB then use IDFC Wealth there.

 

[anirban.choudhuryanirban.choudhury is verified member.]

DCB should be your first choice. Activate Global Value Program for 1% Cashback.
Net positive will be more than IDFC wealth. If at any place acceptance issue of DCB then use IDFC Wealth there.

I was not aware about the global program
But DCB has a 2% markup isn’t it ?
So net would still be negative I guess?

 

[thanix]

Hi guys, I am also travelling to US for 2 weeks on June month. I have HDFC Diners Black, IDFC First Wealth and ICICI Sapphiro cards. My hotel and flight will be paid by company. I need for travel (Lyft app) on some days, food + tips (meals on few days outside of company) and shopping (iphone, GoPro, dresses, etc.,). Also few colleagues traveling with me are taking Forex card anyway.

Should I take Forex card or use my Credit cards itself? At what dollars rate will be charged in credit card? Actual rate (like Google search results) or bank rates (higher usually)?
Also, I definitely need some cash (~100 dollars) in hand for emergency purpose.

Sapphiro has 3.5 Mark up I think. Don't use it.
DCB is 2% Mark up but if you have GVP, you will get 1% as cashback. So effective rate is 1%+ GST. You will get regular reward points also, 5 points per 150 in converted Indian rupee value. Just ensure you swipe min 2 usd to get reward points.

Exchange rate is set by card network like visa, master card and diners. Visit their respective website for exchange rate calculator. I know HDFC doesn't charge any bank fee from recent experience of my family travel. Diners was competitive and almost similar exchange rate of visa in Euro.

Guess diners is widely accepted in USA. If it is not there, then it won't be anywhere in the world 😭

Don't take up to pay option in INR as exchange rate may be high and DCC is same as 1% +GST unless exchange rate is same as per card network for that day.

Just get forex cash in loose cash for small transaction.

 

[thanix]

Thanks.. I used this Visa currency converter website, https://www.visa.co.in/support/consumer/travel-support/exchange-rate-calculator.html

View attachment 17144


If this is the case, then its superb benefit. Based on today's rate, bank charges more than 83 rupees for loading money into forex card but while using Visa credit card, we are paying 82.6 rupees. Plus, we get reward benefits (in this case, 2.5rs cashback for 100 rupees).

Please note transaction settlement date needs to be considered. You have to subtract the markup and then calculate.

Only with reward points, it becomes beneficial.

 

[ilavaeniyil]

Please note transaction settlement date needs to be considered. You have to subtract the markup and then calculate.

Only with reward points, it becomes beneficial.

I didn't get what you mean by "subtract the markup and then calculate" and "? Could you explain with example? Thanks

 

[Ankur dhanda]

I was not aware about the global program
But DCB has a 2% markup isn’t it ?
So net would still be negative I guess?

With Global Value Program You get 1% Cashback upto Rs 1000 ( useful for spends upto 1L). Call customer care for activation Rs 199 annual charges, not every agent would be aware so may have to call twice for activation but it’ll be done.
Also you’ll be earning reward points 3.3% .
net will be positive even after markup of 2%.

 

[thanix]

I didn't get what you mean by "subtract the markup and then calculate" and "? Could you explain with example? Thanks

In your case, if forex card is used and it is 83 INR, for 1usd spent, it is just 83.

If a visa credit card is used, it is 82.6 and then bank will add Mark up. Say it is 2% and with GST, the effective price you paid will be 82.6 + 1.94 which is 84.5. Now you should get reward at least 1.5 rupees to be better than forex card.

 

[ilavaeniyil]

In your case, if forex card is used and it is 83 INR, for 1usd spent, it is just 83.

If a visa credit card is used, it is 82.6 and then bank will add Mark up. Say it is 2% and with GST, the effective price you paid will be 82.6 + 1.94 which is 84.5. Now you should get reward at least 1.5 rupees to be better than forex card.

Thanks.. I thought its already added with a field "Bank Fee".. Isn't same? https://www.visa.co.in/support/consumer/travel-support/exchange-rate-calculator.html

Guess diners is widely accepted in USA. If it is not there, then it won't be anywhere in the world 😭

Agree totally. Discover network should cover it.

I read this thread https://www.technofino.in/community/threads/best-credit-cards-for-international-transactions.950/

1. DCB will give me net effective reward rate of 1.94% (only if I redeem with Hotel/Flight booking)
2. IDFC First Wealth gives me effective reward rate of 0.7% (redeem for cash statement)
Seems IDFC First Wealth is good & simple but I can try using both depending on spend amount (have request from others for buying stuff's to them).

 

[ilavaeniyil]

Or if you have IDFC wealth currently they are offering 10x RP on international spends , the net profit would come down to 0.7% in cash against statement

Hi, can you help pointing where its stated as 10x RP on international spends for IDFC First Wealth card? I am searching but unable to find any details on international spend reward points. Thanks

 

[thanix]

Thanks.. I thought its already added with a field "Bank Fee".. Isn't same? https://www.visa.co.in/support/consumer/travel-support/exchange-rate-calculator.html

View attachment 17146


Agree totally. Discover network should cover it.

I read this thread https://www.technofino.in/community/threads/best-credit-cards-for-international-transactions.950/

1. DCB will give me net effective reward rate of 1.94% (only if I redeem with Hotel/Flight booking)
2. IDFC First Wealth gives me effective reward rate of 0.7% (redeem for cash statement)
Seems IDFC First Wealth is good & simple but I can try using both depending on spend amount (have request from others for buying stuff's to them).

Yeah, you can use it. Card statement will show it separately and add GST on top of it.

True IDFC is better if you are not into miles or flight booking.

 

[manzb]

Please keep in mind the following as a checklist

1. For sundry expenses it is better to keep some cash- suggest atleast $1000-$1500
2. Activate the cards for international pos and atm txns for an amount comfortable to you. Even the debit cards should be activated.
3. Forex cards is a better option for most - and I think you can load using credit card as well.
4. In many POS forex cards fail - not sure why
5. Diners (discovery) network is unreliable due to availability reason. Don't bank on it.
6. Get an international roaming pack for your mobile for the duration +2 days (atleast) even if you plan to get a local card (not required as Wifi is very common and we can mostly use Whatsapp to msg/ call).
7. Hotel bookings to be done beforehand. Most hotel chains are good and safe. Try to restrict to the chains then individual hotels.
8. Uber/ Lyft is very useful. But if you are fine then u can rent a car from airport of each city you are planning to visit for local movement. The cost will be very low compared to the taxis. But mind it is left hand drive and traffic rules are very strict. (I rented cars everywhere in US except for first 3-4 days when I observed the traffic rules while taking taxis to commute)
9. Travel lite. You can buy whatever needed locally if u run short and those clothes suits local weather more than whatever u will carry. Carry enough inners.

 

[wr8_utd]

With Global Value Program You get 1% Cashback upto Rs 1000 ( useful for spends upto 1L). Call customer care for activation Rs 199 annual charges, not every agent would be aware so may have to call twice for activation but it’ll be done.
Also you’ll be earning reward points 3.3% .
net will be positive even after markup of 2%.

Hey @Ankur dhanda , given you seem to be fairly knowledgeable about the use of CCs vs forex card with respect to the RPs and markup rates, I was hoping for your help. I have an upcoming international trip and I was wondering if you'd recommend the Zenith + (0.99% markup + 2RP per INR 100 spends abroad) or the DCB with the Global Value Program and the RPs you get? Thanks in advance!

 

[Ankur dhanda]

Hey @Ankur dhanda , given you seem to be fairly knowledgeable about the use of CCs vs forex card with respect to the RPs and markup rates, I was hoping for your help. I have an upcoming international trip and I was wondering if you'd recommend the Zenith + (0.99% markup + 2RP per INR 100 spends abroad) or the DCB with the Global Value Program and the RPs you get? Thanks in advance!

Thank you for your kind words.
It would depend on where you are travelling. If that region has good Diners acceptance, I would without a doubt use DCB everywhere. Still keeping a backup visa/mastercard. 500 points for activation of global value program also there.
In my recent return from Turkey, I faced issue with DCB acceptance at some places. So had to keep visa/mastercard as backup. But wherever it worked I used it as my first choice.

 

[wr8_utd]

Thank you for your kind words.
It would depend on where you are travelling. If that region has good Diners acceptance, I would without a doubt use DCB everywhere. Still keeping a backup visa/mastercard. 500 points for activation of global value program also there.
In my recent return from Turkey, I faced issue with DCB acceptance at some places. So had to keep visa/mastercard as backup. But wherever it worked I used it as my first choice.

Thank you for the reply Ankur.

I'll be travelling to Hungary and Croatia but two big cities in both so I'm hoping DCB acceptance is all right. Do you think with the Global Value Program and the CB, despite the markup being 1% more than AU Zenith +, it'll be worth it? I'll definitely be carrying both cards though.

 

[Ankur dhanda]

Thank you for the reply Ankur.

I'll be travelling to Hungary and Croatia but two big cities in both so I'm hoping DCB acceptance is all right. Do you think with the Global Value Program and the CB, despite the markup being 1% more than AU Zenith +, it'll be worth it? I'll definitely be carrying both cards though.

With DCB you’re getting 1% cashback with global value program so the markup is more or less the same on both the cards and you’re earning minimum 3.3%. Transfer to Accor for hotel redemption then return rate climbs even higher up.
Use Zenith where DCB doesn’t work.

 

[wr8_utd]

With DCB you’re getting 1% cashback with global value program so the markup is more or less the same on both the cards and you’re earning minimum 3.3%. Transfer to Accor for hotel redemption then return rate climbs even higher up.
Use Zenith where DCB doesn’t work.

Got it. That perfectly explains it. Thank you so much, Ankur!

 

[Ankur dhanda]

Got it. That perfectly explains it. Thank you so much, Ankur!

Glad to be of help. Have a great trip

 

[wr8_utd]

Glad to be of help. Have a great trip

Thank you! Actually, I just had one more question. The DCB 5 RP on 150 spends are valid on international transactions too for sure right? Because I know DCB says "5 Reward Points on 150 retail spends". Just wanted to confirm once more.