International Transaction Fees on Indian Credit Cards in 2026 — A Bank by Bank Breakdown
By Kabir Malhotra (Kabir Malhotra writes about how Indian travel buyers actually pay — UPI vs credit card vs forex card surcharges, reward-point math on the top travel credit cards, RBI tokenisation, EMI-on-flights and the small fees that compound across a year of bookings.) · Published · 10 min read
The published forex markup on an Indian credit card is rarely the full story. Here is a structured bank-by-bank look at what every major issuer actually charges on overseas swipes in 2026 — including the GST, the cross-currency add-on and the cash advance trap.
What this article covers
The anatomy of an overseas credit card charge
HDFC Bank — the dominant issuer and its fee structure
ICICI Bank — the Emeralde tier and the standard portfolio
Axis Bank — the Magnus, Burgundy and Atlas portfolio
SBI Card — the Aurum, Elite and Prime structure
IndusInd Bank — the Tiger and the Pinnacle portfolio
Yes Bank, Amex and the smaller issuers
The cash advance trap — never do this overseas
How to actually choose your overseas credit card stack
Frequently asked questions
What is the minimum forex markup I can get on an Indian credit card in 2026?
The lowest forex markups on Indian credit cards in 2026 are Yes Marquee Plus at 1.5 percent, Yes Reserva and IndusInd Tiger at around 1.75 to 1.8 percent, and HDFC Diners Black, HDFC Infinia, Axis Magnus Burgundy and ICICI Emeralde at 1.99 to 2 percent. All of these are premium cards with annual fees in the 9,999 to 49,999 rupee range. To beat these you need a forex card like Scapia or Niyo Global which charge 0 percent markup but do not have credit card features like float, lounges or insurance.
Does the 18 percent GST apply on the entire transaction or just the forex markup?
The 18 percent GST applies only on the forex markup component, not on the principal transaction amount. So on a 100 USD transaction at an 80 INR USD rate, your principal is 8,000 INR, your 3.5 percent forex markup is 280 INR, and the 18 percent GST is roughly 50 INR. Your total transaction cost is 8,330 INR. This is why the effective markup is described as 4.13 percent (3.5 + 18 percent of 3.5 = 4.13 percent) rather than 21.5 percent.
Are reward points on overseas spending earned on the full INR amount or just the principal?
Reward points are typically earned on the full INR transaction amount including the forex markup, on most Indian credit cards. So a 100 USD transaction at 80 INR rate becomes an 8,330 INR transaction (including markup and GST), and your reward points accrue on the full 8,330 INR. A few cards exclude markup from points earning — check the specific card terms. The premium travel cards generally include markup in points calculation, which slightly improves the effective benefit.
Is the forex markup the same on online overseas purchases as it is on physical swipes?
Yes, the forex markup is identical for online and offline overseas transactions. Whether you are swiping at a Paris café, withdrawing from a Tokyo ATM, or buying from a US e-commerce site that bills in USD, the same forex markup applies. The exception is INR-denominated transactions on Indian merchant gateways even if the underlying service is overseas (some Indian travel agents do this) — these are processed as domestic transactions and no forex markup applies.
Can I avoid the forex markup by setting my credit card to charge in INR via DCC?
No, Dynamic Currency Conversion (DCC) always costs you more than the card forex markup, not less. DCC merchants typically apply a 3 to 8 percent markup on the converted INR amount. Always decline DCC and insist the transaction be processed in the local currency. This lets your card apply its own (lower) markup. The merchant or the acquirer keeps the DCC profit when you accept; it is never to your advantage.
Are forex markup rates on premium credit cards genuinely lower or marketing spin?
Genuinely lower, and the difference materially adds up. HDFC Diners Black at 2 percent markup versus a standard HDFC card at 3.5 percent saves you 1.5 percent on every overseas swipe. On 5 lakh of annual overseas spend, that is 7,500 rupees saved on markup, which substantially offsets the 10,000 rupee annual fee. The premium card markup is contractually lower at the issuer rate; it is not a marketing claim. Read the card terms to confirm.
What happens to forex markup on chargebacks or refunds for overseas transactions?
When an overseas transaction is refunded, most Indian credit cards refund the principal amount and the forex markup back to your card, but at the current exchange rate rather than the original transaction rate. If the INR has weakened against the foreign currency between transaction and refund, you may actually receive more INR than you originally paid. Conversely if INR has strengthened, you may receive less. GST on the markup is typically refunded proportionally. Check your card terms for exact mechanics.
Is there any way to get reward points or cashback on the forex markup itself?
Effectively yes, on cards where points accrue on the full INR transaction amount including markup. For example a 100 USD spend at 80 INR rate with 3.5 percent markup and GST becomes an 8,330 INR transaction. On a card paying 1 percent cashback on all transactions including overseas, you earn 83.30 INR cashback on the 8,330 INR. The cashback effectively returns about 1 percent of your total spend including markup. So premium cards with good cashback do partially neutralise the markup cost.