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IDFC FIRST Bank has removed forex markup charges across its credit card portfolio, giving existing and new customers zero forex markup on eligible international transactions. The benefit applies automatically, so cardholders do not need to upgrade their cards, apply for a new one, or meet a minimum spending level.
The move covers foreign-currency spending such as purchases made overseas, international online shopping, subscriptions, software payments, and some education or business expenses. Customers can also continue to earn reward points or cashback where their card terms allow it.
Credit card issuers usually add a forex markup when they process a payment in a foreign currency. IDFC FIRST Bank previously listed forex charges ranging from 1% to 3.5% across different cards, while some cards already carried no markup. GST also applied to the markup fee. The bank has now removed this markup across its credit card range.
On an international purchase worth Rs. 1 lakh, a 3.5% forex markup would add Rs. 3,500. An 18% GST charge on that fee would add another Rs. 630, bringing the total extra cost to Rs. 4,130. Under the zero forex markup policy, the bank will not levy that forex markup charge. Actual savings will vary depending on the card and the fee that applied earlier.
The bank said the change applies to both current and new credit card customers. Existing users do not need to move to a premium card or complete a separate enrolment process. They can continue using their current IDFC FIRST Bank credit card for eligible foreign-currency transactions.
Rewards will also continue under each card’s applicable terms. A card that offers reward points or cashback on eligible international spending can provide those benefits according to its rules. Shirish Bhandari, Head of Retail Liabilities, Credit Cards and Payments at IDFC FIRST Bank, said, “By eliminating forex markup charges across all our credit cards, we are delivering a simple yet powerful benefit.”
Cardholders should still check how a merchant processes an international payment. Paying in Indian rupees through dynamic currency conversion can involve a merchant or ATM conversion rate and separate charges. Therefore, customers should review the currency choice before approving a transaction. IDFC FIRST Bank advises customers to choose the local currency when paying abroad to receive the zero forex markup benefit.
Other costs can also remain. ATM withdrawals, cash advances, and transaction-specific fees may follow separate rules. The card network’s exchange rate can also affect the final rupee amount. Zero forex markup removes the bank’s additional foreign-currency markup, but it does not make every overseas transaction free.
For customers who mainly use forex cards to avoid credit card markup, the change gives them another payment option. However, forex cards and credit cards use different fee structures. Customers should compare exchange rates, withdrawal charges, loading fees, rewards and acceptance before choosing how to pay abroad.
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