If you frequently travel abroad or shop from international merchants, understanding the Citibank Credit Card Foreign Transaction Fee is essential. Citibank apply foreign transaction fee when you make purchases in a foreign currency or through overseas retailers. Typically, Citibank charges a foreign currency markup of up to 3.5% on such transactions.
By choosing the right Citibank credit card, you can minimize extra fees and make your foreign transactions more cost-effective. Let’s explore all the details related to Citibank Credit Card foreign transaction fees.
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What is CitiBank Credit Card Foreign Transaction Fee?
Most Citibank credit cards, except the Citi Rewards Domestic Credit Card, are subject to a Citibank Credit Card Foreign Transaction Fee of 3.5% on the INR equivalent of the US Dollar for international transactions in USD. This fee is calculated based on Citibank currency exchange rates and the conversion rates set by card networks.
Currency Conversion Process:
- For USD transactions: The fee is directly applied to the INR equivalent.
- For non-USD transactions: The amount is first converted to USD using card network rates, then to INR, before the Citibank credit card foreign transaction fees are applied.
Dynamic Currency Conversion (DCC) Charges on Citibank Credit Cards
Besides the Citibank credit card foreign transaction fee, some Citibank credit cards may also incur Dynamic Currency Conversion (DCC) charges when foreign transactions are processed in Indian Rupees (INR) instead of the local currency.
DCC Service: Offered by merchants or ATMs, allowing international cardholders to pay in INR, often with additional fees. Here’s the list of cards along with the DCC charges on them-
| Citibank Credit Cards | Dynamic Currency Conversion Charges |
| Citi Prestige Credit Card, Citi Corporate Card | No markup charges |
| Citi PremierMiles Credit Card, Citi Cash Back Credit Card, Citi Rewards Domestic Credit Card, Citi Rewards International Credit Card, First Citizen Citi Credit Card, IndianOil Citi Credit Card, CitiBusiness IOC Credit Card, CitiBusiness Credit Card, IKEA Family Credit Card by Citi | 1% (+GST) on each international transaction made in Indian currency |
| Please note that these charges are available on the mentioned Citibank credit cards, effective from 15th January 2024. | |
Also Read: This blog is a comprehensive guide on the benefits of opening an account in Citi Bank, USA as an international student. Read to know them all!
Citibank Credit Cards with No Foreign Transaction Fee
If you frequently travel abroad or shop from international retailers, Citibank credit cards with no foreign transaction fees can help you save on additional charges. These cards allow you to make purchases overseas without paying extra fees, making them a cost-effective choice for global spending.
Let’s take a closer look at some of the best Citibank credit cards with no foreign transaction fees:
Citi/ AAdvantage Platinum Select World Elite Mastercard
The Citi/ AAdvantage Platinum Select World Elite Mastercard is a great option for travellers who are loyal to American Airlines. This card not only provides a wide range of travel benefits, such as earning AAdvantage miles on every purchase, but it also offers no foreign transaction fees.
Whether you’re booking flights, dining abroad, or making purchases at international retailers, you won’t incur additional costs for using your card outside the United States.
Costco Anywhere Visa Card by Citi
For Costco members who frequently travel or shop internationally, the Costco Anywhere Visa Card by Citi is a solid choice. This card offers no foreign transaction fees and provides rewards on purchases made worldwide.
It offers cashback on eligible purchases like gas, dining, and travel, all without the added burden of foreign transaction fees when making purchases outside of the United States.
Citi/ AAdvantage Executive World Elite Mastercard
The Citi/ AAdvantage Executive World Elite Mastercard is a premium travel card specifically designed for frequent American Airlines travellers. It comes with the added benefit of no foreign transaction fees, so you can enjoy international travel and purchases without worrying about extra charges.
This card also offers high earn rates on American Airlines purchases and access to valuable travel benefits like Admirals Club membership, making it an excellent choice for those who travel often.
Citi/ AAdvantage Business World Elite Mastercard
For business owners who travel internationally, the Citi/ AAdvantage Business World Elite Mastercard is a top-tier card that offers no foreign transaction fees. With this card, you can earn AAdvantage miles on business purchases, including travel, office supplies, and more.
Plus, there are no additional fees for international business transactions, making it an ideal option for frequent business travellers looking to maximize rewards without the added cost of foreign transaction fees.
Costco Anywhere Visa Business Card by Citi
Similar to the personal Costco card, the Costco Anywhere Visa Business Card by Citi offers no foreign transaction fees. It’s perfect for business owners who shop internationally or travel abroad for work.
This card also provides rewards on eligible purchases such as gas, travel, and dining, and it eliminates the foreign transaction fees, helping to save money on international purchases for your business.
Why Choose Citibank Credit Cards with No Foreign Transaction Fees?
- Save on international purchases by avoiding extra charges.
- Earn rewards and cashback while spending abroad.
- Ideal for frequent travelers and business owners who make global transactions.
By opting for a Citibank credit card with no foreign transaction fees, you can enjoy seamless international spending while maximizing rewards and savings.
Also Read: Know everything about Citibank international wire transfer – what are the transfer limits, citibank global transfers, and more.
How Does Citibank Credit Card Foreign Transaction Fee Work?
When using a Citibank credit card for foreign transactions, the Citibank Credit Card Foreign Transaction Fees are applied in the following manner:
Currency Conversion Process:
- The transaction amount in the foreign currency is first converted into US Dollars (USD).
- The USD amount is then converted into Indian Rupees (INR) using the exchange rate provided by Visa or MasterCard.
- A foreign currency markup fee of up to 3.5% is applied to the INR equivalent of the transaction value.
Example:
- If you make a purchase in Euros (EUR) or British Pounds (GBP), Citi will first convert the amount to USD and then to INR.
- The 3.5% foreign transaction fee is then added to the final INR amount.
By understanding Citibank Credit Card Foreign Transaction Fees, you can better plan your international transactions and avoid unnecessary charges.
Tips to Avoid or Minimise Citibank Credit Card Foreign Transaction Fees
Citibank credit card foreign transaction fees can add up when making purchases abroad or shopping on international websites. With fees of up to 3.5% on foreign transactions, it’s important to explore ways to reduce or avoid these charges.
By following these tips, you can minimise the impact of Citibank credit card foreign transaction fees and avoid unnecessary charges while shopping or traveling abroad.
- Use a Credit Card Without Foreign Transaction Fees
Some credit cards are specifically designed for international travellers and don’t charge foreign transaction fees. These are called zero Forex markup credit cards. If you travel frequently or make international purchases, consider applying for a Citi credit card or another card that offers no foreign transaction fees. This will help you avoid paying extra charges on each foreign purchase. - Pay in the Local Currency
When travelling abroad, always opt to pay in the local currency rather than allowing the merchant to charge you in your home currency (Indian Rupees). By choosing to pay in the local currency, you ensure that the transaction is converted using the exchange rates set by the card network (MasterCard/Visa), and you avoid the DCC markup. - Shop Online Using INR
When making online purchases from international websites, check if they offer prices in Indian Rupees (INR). If you’re able to shop in INR, it will save you from the hassle and cost of currency conversion altogether. This also eliminates the need for Citi to apply the foreign transaction fee. Alternatively, you can use the best forex cards for Indian travellers to save on additional costs. - Be Aware of DCC
If you’re using your Citi credit card internationally and the merchant offers Dynamic Currency Conversion (DCC), be aware of the potential added costs. The merchant or DCC service provider will convert the transaction into INR, but the exchange rates they use could be unfavourable, leading to higher charges. Always check the final amount before confirming payment. If the merchant offers DCC, declining the option and opting to pay in the local currency will help avoid the additional charges. - Keep Track of Your Transactions
To stay on top of your spending and spot any unexpected fees, hold on to your transaction slips. This makes it easier to cross-check your expenses with your credit card statement. You can also use your smartphone to quickly check your account balance or track spending via your banking app, ensuring that you catch any discrepancies early.
This was all about Citibank’s foreign transaction fee. To learn more about education loans, the best bank accounts for students, forex, banking experience for global students, or international money transfers, reach out to our experts at 1800572126 to help ease your experience with studying abroad.
FAQs on Citibank Credit Card Foreign Transaction Fee
A Citibank credit card foreign transaction fee is applied for purchases made in a foreign currency, typically up to 3.5% of the total transaction amount in INR.
All Citibank credit cards, except for the Citi Rewards Domestic Credit Card, incur a 3.5% foreign transaction fee on purchases made in foreign currencies.
The Citibank credit card foreign transaction fee is calculated based on the INR equivalent of the foreign transaction amount after it is converted first into US Dollars (USD) and then into INR.
Yes, Citibank offers cards like the Citi AAdvantage Platinum Select World Elite Mastercard and Costco Anywhere Visa Card with no foreign transaction fees.
DCC is a service where merchants convert your transaction into your home currency (INR), potentially charging extra fees. Opting for local currency is usually better to avoid high charges.
If you choose DCC, the merchant converts the transaction into INR, often at unfavourable exchange rates. Citi may charge a 1% (+GST) fee on transactions made in INR.
You can avoid fees by using Citi credit cards with no foreign transaction fees or paying in the local currency instead of opting for DCC.
Citibank charges a foreign currency markup fee of up to 3.5% on the INR equivalent of transactions made in foreign currencies, including USD.
Foreign transactions are first converted into US Dollars, then converted into INR using exchange rates set by Mastercard/Visa. The foreign transaction fee is then applied.
To minimize fees, use a card without foreign transaction charges, pay in local currency, and avoid Dynamic Currency Conversion when abroad.
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