Forex markup on credit cards in India and tips for using one abroad

Updated 30 Oct 2026 · by SwipeWise editorial team · how we write

When you pay in a foreign currency, your bank converts the amount to rupees and adds a percentage on top, called the forex or cross-currency markup. Issuers state it in the fee table of the MITC or on the card’s fees page. It is easy to miss because it is not a separate line item you choose, and it applies to more than trips abroad.

What counts as a foreign-currency transaction

• Spending in a shop, hotel or restaurant outside India.
• Online purchases from foreign websites, subscriptions and app stores billed in a foreign currency.
• Rupee-billed transactions at an international location, or with a merchant located in India but registered abroad. ICICI Bank, Axis Bank and HDFC Bank charge a separate dynamic currency conversion (DCC) markup on these; see the DCC section below. HDFC’s notice to cardholders says its DCC markup is 1.75% from 15 May 2026.

How a foreign spend is built up

1. The network’s exchange rate on the settlement date, which can be later than the swipe date. ICICI’s MITC says the conversion happens on the date the transaction is settled with the bank, and that a non-USD amount is converted through USD at the card network’s rate.
2. The issuer’s markup, a percentage of the transaction.
3. GST on that markup. OneCard’s MITC says GST applies on the markup fee, and ICICI’s MITC says GST at 18% applies to all its fees. The rate is explained in GST on credit card fees and charges.

What the markup costs on ₹1,00,000

The markups below are from each card’s official documents (listed under Sources). The GST column takes 18% of the markup for every card; we did not find GST on the forex markup stated in the documents of every issuer, so treat the last column as the likely all-in cost.

Arithmetic for the first row: 3.5% x ₹1,00,000 = ₹3,500; 18% x ₹3,500 = ₹630; ₹3,500 + ₹630 = ₹4,130. Going from Axis ACE to OneCard on the same ₹1,00,000 changes the markup cost by ₹4,130 - ₹1,180 = ₹2,950. These are markup costs only. The exchange rate itself and any tax collected at source on overseas spending are not included here.

Markup and rewards together

A low markup does not make a card better abroad, because several low-markup cards pay nothing on international spend. From the documents above:

• Amazon Pay ICICI: its T&C say international transactions are not eligible for reward points from 11 Oct 2025. On ₹1,00,000 the net result is a cost of ₹2,348.20.
• HSBC Live+: its product page says the 1.5% cashback is no longer earned on international spends from 26 Jul 2026. The page does not say how the 10% categories are treated abroad, so we have not computed a net figure.
• Federal Scapia: 0% markup, but the cardholder agreement lists forex transactions among those that do not accrue rewards.
• IDFC FIRST Millennia: 0% markup, and the issuer’s page lists 10X reward points on international purchases. IDFC’s terms define 10X as 10 points per ₹200, so on ₹1,00,000 that is 5,000 points. At ₹0.25 a point (the rate IDFC’s rewards-gallery terms use for flight and hotel redemptions) that is ₹1,250, before the ₹99 per redemption transaction fee in IDFC’s MITC. Other redemption routes may value points differently, so confirm the current rate before relying on this.

By the same arithmetic, a card that charges 3.5% plus GST (4.13% in all) needs a reward rate above 4.13% on foreign spend just to cover the markup.

Dynamic currency conversion

At some foreign terminals and ATMs you are offered a choice: pay in rupees or in the local currency. Paying in rupees is dynamic currency conversion (DCC). IDFC FIRST’s MITC describes it as a service that converts the foreign-currency amount to rupees at the point of sale or withdrawal, and says the INR amount may include fees charged by the acquiring bank or service provider. Several issuers also charge their own DCC markup on top, and it can differ from the forex markup:

• Axis ACE: 3.5% on rupee transactions at international locations or with foreign-registered merchants in India. Axis’s notice says its DCC markup rose from 1.5% to 3.5% from 28 Aug 2026.
• Amazon Pay ICICI: 1.99% from 15 Jan 2026 (1% before that, per ICICI’s MITC).
• YES Bank: 1% plus GST per its MITC V18.
• IndusInd Legend: 2% plus GST from 15 Jun 2026, up from 1% plus taxes.
• HDFC Bank: a DCC markup of 1.75% on rupee transactions at an international location or with foreign-registered merchants in India, from 15 May 2026 (HDFC’s cardholder notice). The same notice does not change the separate foreign-currency markup.
• IDFC FIRST: the markup row in the current MITC covers foreign-currency and DCC transactions together and shows Nil.

Choosing the local currency means one conversion at the network rate plus your issuer’s forex markup. We have no source on how large merchant-side margins are, so compare the amount shown on the terminal with the local-currency amount converted at that day’s rate.

Cash withdrawals

RBI’s credit card Master Direction lists the cash advance fee and the finance charges on cash advances among the items an MITC must state. In HSBC’s MITC for the Platinum and Live+ cards, the cash advance fee is 2.5% of the amount (minimum ₹500) at HSBC and Visa ATMs in India and overseas, with a finance charge from the date of withdrawal. Axis ACE’s fees page lists the same 2.5% (minimum ₹500). Read the cash advance terms of your own card before using it for cash.

Before you travel

• Look at the markup, rewards on international spend and cash advance fee in the MITC; see how to read a credit card MITC.
• If lounge access is a reason for the card, check the spend condition on it: airport lounge access on credit cards.

Markups change. For example, Axis’s 28 Aug 2026 revision, YES Bank’s move for Elite+ from 2.75% to 3.00% on 15 Jun 2026 and ICICI’s cut on Amazon Pay from 3.5% to 1.99% are all in the MITCs listed below. RBI’s Master Direction requires changes in charges to be made with prospective effect and at least one month’s prior notice, so look at notices from your issuer before a trip.

For cards ranked on net value including international spend, see best travel cards, test your own mix in the calculator, and read points vs cashback for how reward values differ.

Sources

All accessed 2026-10-30.

• Axis ACE fees and charges (foreign currency transaction fee 3.5%, DCC markup 3.5%, cash withdrawal fee): Axis Bank ACE page. DCC revision from 1.5% to 3.5% effective 28 Aug 2026: Axis generic T&C revision.
• IndianOil HDFC Bank (3.5% mark-up on international and cross-currency transactions): HDFC Bank product page.
• YES Bank Elite+ (2.75% to 3.00% from 15 Jun 2026; DCC 1% plus GST): YES Bank MITC V18, 5 Oct 2026, page 22.
• Standard Chartered Ultimate (2% forex markup from 25 Aug 2024): SC Ultimate card page FAQ.
• Amazon Pay ICICI (1.99% from 1 Oct 2025, DCC 1.99% from 15 Jan 2026, 18% GST on fees, conversion on settlement date): ICICI Bank MITC. International transactions not eligible for rewards from 11 Oct 2025: ICICI Amazon Pay T&C.
• HSBC Live+ (1.99%; cash advance fee 2.5%, minimum ₹500): HSBC MITC, Platinum and Live+. Cashback on international spends from 26 Jul 2026: HSBC Live+ page.
• IndusInd Legend (forex 1.8%; DCC 2% plus GST from 15 Jun 2026): IndusInd Bank MITC and schedule of charges.
• OneCard (1% markup, GST applicable on markup): SBM co-branded MITC, Sep 2025 and Federal Bank co-branded MITC.
• AU Zenith+ (0.99%): AU Small Finance Bank schedule of charges v1.9, 30 Sep 2026.
• IDFC FIRST Millennia (zero forex markup; 10X on international): IDFC FIRST Millennia page. Markup row Nil, DCC description, ₹99 redemption fee: IDFC FIRST MITC and an older edition of the same MITC (MITC_Document_Customer.pdf) for the DCC footnote. 10 points per ₹200 and ₹0.25 a point: IDFC FIRST Millennia travel and shop T&C.
• Federal Scapia (zero forex markup; forex transactions do not accrue rewards): Federal Scapia Cardholder Agreement v8.27, Jan 2026.
• RBI, Master Direction - Credit Card and Debit Card - Issuance and Conduct Directions, 2022 (RBI/2022-23/92, 21 Apr 2022, updated to 7 Mar 2024): MITC contents, one month’s notice of changes in charges.
• GST on credit card fees and charges, this site, for the 18% rate.
• Axis Bank, MITC for credit cards: foreign currency transaction fee of 2% for Magnus and 3.5% DCC markup for retail cards (read 30 Oct 2026).
• HDFC Bank, Updates on your credit card rewards, fees and charges: DCC markup of 1.75% from 15 May 2026 (read 31 Oct 2026).

Keep reading

• Airport lounge access on credit cards: how it works
• Points vs cashback credit cards: which suits you?
• How to read a credit card MITC before you apply