Imagine you are on a long-awaited trip abroad, enjoying the sights, shopping and experiencing the local cuisine. Every time you swipe your Credit Card, you think of the ease and security it provides. However, you might notice unexpected Credit Card international transaction charges on your statement later – these are likely Credit Card foreign transaction fees. Understand these additional costs and save yourself from surprises on your next adventure.
The amount of the foreign transaction fee on Credit Cards varies depending on the Credit Card issuer. Typically, this
fee ranges from 1% to 3% of the transaction amount.
Foreign transaction fee = Purchase amount in ₹ × foreign transaction fee percentage
Sample calculation:
You might face various fees when using your Credit Card for international transactions.
Consider applying for an Axis Bank Credit Card when you travel abroad and enjoy offers and benefits such as
accelerated reward points, cashback, discounts and so on.
Understanding the foreign transaction fee on Credit Cards is crucial for managing your finances while travelling
abroad.
FAQs
Does a Credit Card charge international fees?
Yes, Credit Card companies apply international fees, often called foreign transaction fees. This fee accounts for currency conversion and handling costs on purchases made in foreign currencies or through non-domestic banks.
Can I avoid international transaction fees on a Credit Card?
Yes, you can ward off international transaction charges using a Credit Card that provides no foreign transaction fees, which many banks and travel Credit Cards offer. Alternatively, some digital wallets and multi-currency cards let you pay in local currencies without these fees, saving on conversion costs.
Can you use a Credit Card for international transactions?
Yes, most Credit Cards can be used for international transactions, but they must be globally accepted (like Visa or Mastercard). However, be watchful of foreign transaction fees and currency conversion rates. Informing your bank before travel can help avoid transaction issues and may enable security features for added protection.
How do I find out how much I have been charged on a foreign transaction?
You can check your Credit Card statement. The statement will typically list the original transaction amount, the
conversion rate and the foreign transaction fee applied.
Is there a credit limit for international expenses?
Yes, your Credit Card’s credit limit applies to both domestic and international expenses.
Will finance charges be applicable if I do not pay the foreign transaction rate?
Yes, if you do not pay the full balance, including the Credit Card international fee, finance charges or interest
will be applied to the remaining amount.
Will monetary instruments charge a mark-up fee on international transactions?
Yes, most Credit Cards and monetary instruments charge a mark-up fee on international transactions.