Typical sting: typically ~3.5% + GST per transaction

🌍 Forex markup

Short answer

Forex markup is a fee added to every transaction in a foreign currency — typically around 3.5% plus GST (indicative, as of 2026). It applies to international travel *and* to foreign websites and subscriptions billing from abroad, so you can pay it without ever leaving India.

What it is

When you spend in a foreign currency, the card network converts the amount into rupees using its own rate, and your bank adds a percentage on top. That percentage is the markup, and GST applies to it.

Why it exists

Cross-border transactions cost more to process and carry currency risk. The markup covers that — and comfortably more, which is why the rate varies so much between cards.

How much it is (indicative, as of 2026)

Card type	Typical markup
Most everyday cards	~3.5% + GST
Some travel-oriented cards	Materially lower
Zero-markup cards	Rare, and usually fee-bearing

Your exact figure is in the schedule of charges — worth checking before any trip or large foreign purchase.

Where it catches people at home

The quiet version: A ₹1,200-a-month foreign-billed subscription attracts markup every single month. Four such subscriptions can cost more in markup over a year than a short holiday abroad — and none of it is visible unless you read your statement.

How to reduce it to as close to ₹0 as possible

This is one of the few charges you cannot fully eliminate if you spend in foreign currency at all. What you can do:

Know your card's markup before travelling. If you hold more than one card, use the cheaper one abroad.
Always decline DCC. When asked "pay in INR or local currency?", choose the local currency — the INR option hides a worse exchange rate on top of the markup.
Check foreign-billed subscriptions once a year. Some services offer INR billing, which removes the markup entirely.
Do not take a new card only for this unless the arithmetic clearly justifies it. A ₹3,000 annual fee to save 2% markup needs ₹1,50,000 of foreign spending a year to break even.

Never withdraw cash abroad on a credit card. You would pay the cash advance fee, immediate interest, and the forex markup — three charges on one transaction.

All figures on this page are indicative and dated. Rates and fees differ by bank and change over time. Always verify with your bank's official schedule of charges.

Frequently asked questions

Do I pay forex markup on a foreign website while sitting in India?

Yes, if the merchant bills in a foreign currency. Software subscriptions, cloud storage, international shopping sites and many app stores are foreign-currency transactions from your bank's point of view, regardless of where you are.

How do I avoid paying twice on a foreign transaction?

Decline Dynamic Currency Conversion. When a foreign site or terminal offers to bill you in INR, choose the merchant's local currency instead — otherwise their exchange rate margin is layered on top of your bank's markup.

Sources

The regulation and official pages this page is checked against. If one of them disagrees with us, it wins.

Master Direction — Credit Card and Debit Card (Issuance and Conduct) Directions, 2022 — Reserve Bank of India

Written and checked by the CardSamajh editorial desk · Last reviewed: 21 August 2026 · How we check this