When you use your card for transactions in a currency that differs from your home currency (INR), the payment processor needs to convert the foreign currency into your local currency. Typically, the payment processor adds an additional fee on top of the foreign exchange (forex) rate, which is referred to as the Forex Markup fee. Conventional credit and debit cards might come with a forex markup fee that can go up to 3.5%. However, in recent times, many cards have become available that do not impose any markup fees whatsoever. Instead, they apply the exact foreign exchange rates. These types of cards are commonly known as ‘Zero Forex Markup’ Cards. Read to know more about Zero Forex Markup cards in India.
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Table of contents
What is a Zero Forex Markup Card?
A Zero Forex Markup Card is a type of payment card—often a credit or debit card—that eliminates the usual foreign exchange markup fees when you make a purchase or withdraw money in a currency other than your own.
Typically, when you make an international transaction using a standard credit or debit card, the card issuer applies a forex markup fee on top of the conversion rate. This can result in significant extra costs. However, a Zero Forex Markup Card is designed to waive this fee entirely. Instead of charging extra for currency conversion, the card offers you access to the interbank exchange rate, which is the most competitive rate available in the market.
How Does a Zero Forex Markup Card Work?
A Zero Forex Markup Card works by eliminating foreign exchange markup fees on international transactions. It automatically converts foreign currencies at the interbank rate, allowing you to make purchases or withdrawals without incurring additional conversion costs. The process behind a Zero Forex Markup Card is simple:
Global Usage: These cards work just like any other debit or credit card—whether you’re shopping online from an international retailer or withdrawing cash from an ATM while travelling abroad.
Currency Conversion: When you make an international purchase or withdrawal, the card automatically converts the foreign currency to your home currency at the interbank rate.
No Markup Fee: There are no additional forex markup fees added to the transaction. You only pay for the amount of the purchase in foreign currency, converted at the real-time exchange rate.
Transparency: The exchange rate is generally visible at the time of the transaction, so you know exactly how much you’re paying without any hidden fees.
Benefits of Zero Forex Markup Cards
- Convenience: Users do not need to carry cash or exchange currency, simplifying financial management during travels.
- No Foreign Transaction Fees: The primary advantage of these cards is the elimination of forex markup fees, making them ideal for frequent travellers and international students.
- Global Acceptance: These cards can be used worldwide, allowing users to make payments in multiple currencies without worrying about hidden charges.
- Additional Perks: Many zero forex markup cards come with added benefits such as rewards programs, travel insurance, and airport lounge access, enhancing the overall travel experience.
- Enhanced Security Features: These cards typically offer fraud protection and secure transaction capabilities, ensuring peace of mind while spending abroad.
Currency Conversion Fee
Traditional credit and debit cards often charge a foreign exchange fee, also known as a currency conversion fee, when you make purchases in a currency different from the card’s default currency. This fee is typically a percentage of the transaction amount. With a Zero Forex markup card, this fee is waived, allowing you to make transactions at the actual exchange rate without extra charges.
Also Read: Benefits of DBS Bank Credit Card for International Students
International Travel
These cards are particularly popular among international travellers. When using this type of card abroad, you can pay for goods and services in the local currency without worrying about the extra fee that’s usually associated with currency conversion.
Online Shopping
These cards can also be useful for online shoppers who frequently buy products from international websites. By using a Zero Foreign Exchange Fee card, you can avoid paying unnecessary fees for currency conversion when making online purchases.
Also Read: SBI Forex Card
Issuing Banks
Zero Forex markup cards are typically offered by banks and financial institutions as a premium feature. These cards might be included in premium credit card offerings or as a specific benefit for certain account types.
Exchange Rate
While you won’t be charged an additional fee for currency conversion, it’s important to note that the exchange rate used for the conversion may still vary from the interbank rate. The exchange rate used by the issuing bank or card provider might include a small markup, even though there’s no additional fee.
Also Read: Axis Bank Forex Card
Benefits and Rewards
Some Zero Foreign Exchange Fee cards may also come with additional travel-related benefits, such as travel insurance, lounge access at airports, and rewards programs tailored to international spending.
Eligibility and Fees
Keep in mind that eligibility requirements for these cards, as well as annual fees and other charges, can vary. It’s advisable to review the terms and conditions before applying for or using any Zero Forex Markup Card.
Verification
When using the card internationally, you might be asked to verify transactions for security purposes. Make sure to keep your contact information updated with your card issuer to ensure smooth transactions.
Also Read: ICICI Forex Card for Students
Application of Zero Forex Markup Card
Due to the significant fees incurred with regular cards for these activities, there is a high demand for cards that come with the benefit of not charging any additional fees for foreign currency transactions. Owing to these advantages, a Zero Foreign Exchange Fee Card is used for the following purposes:
- Making purchases online from India in a foreign currency, such as booking flights or paying admission fees to foreign institutions.
- When you’re abroad and making online payments like booking rides, ordering food, or reserving hotels, these cards come in handy. They also work for in-person payments at restaurants and stores.
- Withdrawing cash from ATMs while abroad. Further, these cards can also be used for offline point-of-sale (POS) transactions, such as paying at restaurants or shopping in stores.
Also Read: HDFC Forex Card for Students
Examples of Zero Forex Markup Cards in India
Indians travelling abroad or shopping online in foreign currency can use debit cards or credit cards with 0% forex markup. Some of the popular examples of Zero Forex Markup Cards available in India are tabulated below. All the below-mentioned cards can be used in International ATMs only.
| Cards | Forex Markup | Charges | ATM Withdrawal Fees |
| Axis Burgandy Private Credit Card | 0% | Free for Lifetime | Nil |
| RBL World Safari Credit Card | 0% | INR 3000 + GST | Nil |
| IndusInd World Exclusive Debit Card | 0% | Free for Lifetime | Nil |
| IDFC Wow Credit Card | 0% | Free for Lifetime | Nil |
| RBL Signature+ Debit Card | 0% | INR 1500 + GST; Charges waived off if expenses exceed INR 3 lakh | Nil |
| Jupiter Money Pro Salary Account Debit Card | 0% for up to INR 1 lakh | Free for Lifetime | INR 100 |
| Scapia Credit Card | 0% | Free for Lifetime | Nil |
Who Should Consider a Zero Forex Markup Card?
A Zero Forex Markup Card is ideal for individuals who frequently engage in international transactions, offering significant savings by eliminating foreign exchange fees. It’s perfect for travelers, shoppers, expatriates, business owners, and international students looking to reduce costs.
International Students
International students often face high costs when paying tuition fees, managing living expenses, and making purchases in foreign currencies. A Zero Forex Markup Card is a great option for students studying abroad, as it helps reduce the financial strain of currency conversion fees. Whether you’re paying for rent, groceries, or online subscriptions, this card ensures that you get the best exchange rate without any additional charges, helping you stretch your budget further.
Frequent Travelers
If you travel abroad regularly, a Zero Forex Markup Card is an excellent choice. Whether you are going on vacation, a business trip, or even travelling long-term, the card can save you a lot of money on foreign exchange fees. With the card, you avoid the additional costs that come with currency conversion, making international travel more affordable.
Online Shoppers
If you frequently shop from international e-commerce websites, you’re probably used to the extra costs added due to foreign exchange markups. A Zero Forex Markup Card eliminates these extra costs and makes international shopping much more affordable. Whether you’re purchasing items from foreign retailers or subscribing to services that charge in a different currency, this card helps you save.
Expatriates or Digital Nomads
If you live or work abroad, you’re probably dealing with a lot of international transactions, from paying rent to buying groceries or transferring money back home. A Zero Forex Markup Card simplifies managing these expenses and ensures you’re not paying extra for currency conversion. It’s the ideal solution for individuals living abroad long-term, making everyday transactions more seamless and cost-effective.
Business Owners
For businesses that engage in international trade or need to make regular payments across borders, a Zero Forex Markup Card can help save costs on forex conversions. This could be especially useful for managing travel expenses, paying suppliers in foreign countries, or handling overseas payroll. The absence of forex fees can add up to significant savings for businesses with international dealings.
Also Read: Multi-Currency Forex Card
FAQs
Axis Burgandy Private Credit Card, RBL World Safari Credit Card, IndusInd World Exclusive Debit Card, IDFC Debit Card, and Jupiter Debit Card are popular examples of Zero Markup Forex Cards.
It is a type of credit or debit card that doesn’t charge any additional fees for currency conversion when you make transactions in foreign currencies.
These cards are available at Axis Bank, IndusInd Bank, and IDFC Bank.
A zero markup card eliminates the foreign exchange fees typically charged by banks or card issuers, saving you an additional 2.5% to 3% of each international transaction.
Yes, a zero forex markup card can be used for both foreign purchases and ATM withdrawals abroad, with no extra currency conversion fees.
While these cards waive forex markup fees, they may have other charges like annual fees, ATM withdrawal fees, or foreign transaction fees, depending on the bank or issuer.
No, you don’t need a foreign currency account. The card automatically converts foreign currencies to your home currency at the interbank rate.
You can apply for a zero forex markup card through the issuing bank’s website, mobile app, or by visiting a branch, provided you meet the eligibility criteria.
Yes, these cards are available for both personal and business use, helping individuals and companies save on foreign exchange fees during international transactions.
The exchange rate is usually visible at the time of the transaction, either on the point-of-sale terminal or in your online banking/app statements.
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