Have you ever returned from an overseas trip only to find your credit card bill loaded with extra charges? If so, you’re not alone. From foreign exchange fees to dynamic currency conversion (DCC) and ATM withdrawal costs, spending abroad can quickly become expensive—unless you’re using the right credit card.
This article is your go-to guide on the best credit cards for international travel. We’ll explain how international transactions work, uncover the hidden fees banks don’t always tell you about, and show you how to pick the best travel credit card. The right credit card can help you save thousands, earn attractive rewards, and enjoy benefits like free lounge access and travel insurance.
Whether you’re a frequent flyer or planning your first international trip, understanding these details can save you money and offer peace of mind. So, let’s dive in and make your global travel experience rewarding, not expensive.
Why International Transactions Cost More Than You Expect
Spending money abroad feels the same as shopping at home—until you check your credit card statement. Here’s why international spending can cost more:
Hidden Fees That Add Up:
Before you pick a credit card for travel, it’s important to understand the common extra costs associated with foreign transactions:
🔹 Foreign Exchange Markup Fees
Most credit cards charge a 3% to 3.5% forex markup on every international transaction. This fee is added on top of the exchange rate offered by Visa, Mastercard, or other networks.
🔹 Dynamic Currency Conversion (DCC)
When merchants abroad offer to convert your bill into INR at the time of payment, they apply their own exchange rate with a hefty fee—this is called DCC. It can cost you up to 3.5% more than paying in local currency.
🔹 ATM Withdrawal Charges
Withdrawing cash overseas using a credit card usually comes with:
- Cash advance fees (2.5% or a minimum of ₹500)
- Daily interest from the date of withdrawal (often 36-45% p.a.)
- Forex charges on top of it
💡 Tip: Always choose to pay in the local currency and avoid DCC.
What to Look for in the Best Credit Cards for International Travel
Not all travel cards are the same. To avoid unnecessary charges and earn better rewards, look for the following features:
1. Zero Forex Markup
Choose a card that offers 0% forex markup. This saves you from the 3%-plus charges most cards apply on every foreign spend.
2. Low-Fee or Interest-Free ATM Withdrawals
Some premium cards allow interest-free withdrawals for a limited period with minimal transaction fees.
3. Travel Perks
Look for added benefits such as:
- Airport lounge access
- Free spa visits
- Trip cancellation cover
- Travel insurance
4. High Reward Points on Travel & Foreign Spend
Pick a card that offers bonus points for:
- Flight and hotel bookings
- Spending in foreign currencies
5. EMI Conversion & Spend-Based Unlocks
Some cards allow you to convert international purchases into EMIs or unlock perks based on monthly spending.
Why the Mayura Credit Card Stands Out for Global Travel
Let’s take a closer look at one of the top options available—the IDFC FIRST Bank Mayura Credit Card. It’s a premium metal card specially designed for international usage.
Key Benefits of the Mayura Credit Card
✅ Zero Forex Markup
Avoid the standard 3.5% fee—this alone can save you thousands on a single trip.
✅ Interest-Free ATM Withdrawals for 45 Days
Only a flat fee of ₹199 + GST is charged per transaction—no daily interest, unlike most other cards.
✅ Free Lounge & Spa Access
Enjoy 4 complimentary international lounge visits per quarter with spa access—unlocked with a monthly spend of ₹20,000.
✅ Travel Insurance & Cancellation Cover
Includes up to ₹50,000 coverage for cancelled trips and $1,200 in travel insurance for delays, lost baggage, and more.
✅ Reward Points on Every Spend
- Earn 10 reward points per ₹150 on spends above ₹20,000 per month
- 5 points per ₹150 on spends below that
How Much Can You Save?
Here’s a quick comparison to see how the Mayura Credit Card can help you save:
🛍️ Example 1: Shopping in Paris
Purchase: €500
Exchange Rate: ₹90/€
| Regular Credit Card | Mayura Credit Card | |
|---|---|---|
| Base Cost | ₹45,000 | ₹45,000 |
| Forex Markup | ₹1,575 (3.5%) | ₹0 |
| Final Cost | ₹46,575 | ₹45,000 |
| Savings | ₹0 | ₹1,575 |
💳 Example 2: ATM Withdrawal Abroad
Withdrawal: €500
Exchange Rate: ₹90/€
| Regular Credit Card | Mayura Credit Card | |
|---|---|---|
| Base Cost | ₹45,000 | ₹45,000 |
| Cash Advance Fee | ₹1,125 | ₹199 (+GST) |
| Interest for 45 Days | ₹2,496.58 | ₹0* |
| Total Cost | ₹48,621.58 | ₹45,234.82 |
| Savings | ₹0 | ₹3,386.76 |
* If dues are paid on time.
How to Use Your Credit Card Abroad Smartly
Even the best credit card can cost you money if you don’t use it properly. Follow these steps:
1. Enable International Usage
Activate international transactions from your bank app or by calling customer support.
2. Set Usage Limits
Control spending and avoid fraud by setting daily limits for international POS or ATM use.
3. Use Local Currency
Always choose to pay in local currency instead of INR to avoid DCC charges.
4. Set Up Real-Time Alerts
Get SMS or email alerts for every transaction for better tracking.
5. Inform Your Bank Before Travelling
This prevents your card from being blocked due to foreign activity.
Other Credit Cards You Can Consider for Travel Abroad
✈️ HDFC Regalia ForexPlus Card
- 0% forex markup
- Reloadable prepaid forex card
- No reward points
🌎 Niyo Global Card (in partnership with SBM Bank)
- 0% forex markup
- Linked with Niyo Global account
- No lounge access
💼 IndusInd Pioneer Legacy Credit Card
- Low forex markup
- Premium benefits
- Annual fee applicable
FAQs
❓ What is a forex markup fee?
A forex markup is a charge (usually 3%–3.5%) applied by banks on international card transactions over the base currency conversion rate.
❓ What does zero forex markup mean?
Zero forex markup means your credit card doesn’t charge any extra fee on top of the exchange rate for international transactions.
❓ Are ATM withdrawals abroad safe with credit cards?
Yes, if your card offers interest-free ATM withdrawals. Avoid cards that charge interest from day one.
❓ Can I earn reward points on international spending?
Yes! Cards like the Mayura Credit Card offer bonus points on global spends, especially on flight and hotel bookings.
❓ Should I pay in INR or local currency abroad?
Always choose local currency. Paying in INR invites Dynamic Currency Conversion (DCC), which costs more.
Conclusion
Travelling abroad can be fun, but international spending without the right credit card can lead to unnecessary charges. Fees like foreign exchange markup, DCC, and ATM interest can silently eat into your budget.
Choosing the best credit card for international travel, like the Mayura Credit Card, gives you peace of mind and helps you save money. From zero forex markup to lounge access, interest-free withdrawals, and travel insurance, you get maximum value for your global spending.
Plan ahead, pick the right card, and enjoy your journey—without worrying about extra charges!
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