Forex markup
Short answer
Forex markup is the fee added to every transaction in a foreign currency β typically around 3.5% plus GST (indicative, as of 2026). It applies to international travel *and* to foreign websites and subscriptions billing from abroad, which catches many people who never leave the country.
What it means
When you spend in dollars, euros or dirhams, the network converts the amount to rupees and your bank adds a markup on top. That markup is the fee, and it applies to the full converted amount.
The common mistake
Assuming it only applies abroad. Foreign-billed subscriptions are the quiet version of this fee: small, recurring, and invisible unless you read your statement.
The second mistake is accepting Dynamic Currency Conversion at a foreign checkout, which layers a poor exchange rate on top of the markup you were paying anyway.
How to reduce it
- Know your card's markup before travelling β it is in the schedule of charges.
- Always choose the merchant's local currency when asked.
- For long trips or heavy foreign spending, compare cards on markup alone β but do not take a new card only for this unless the arithmetic is clearly worth it.
Related
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 foreign websites even from India?
Yes, if the merchant bills in a foreign currency. Software subscriptions, cloud storage, gaming and many international shopping sites are foreign-currency transactions from your bank's point of view, wherever you are sitting.
Is forex markup the same on every card?
No. It varies by card, and some cards charge materially less than the typical rate. The exact figure is in your card's schedule of charges β worth checking before a trip or a big foreign purchase.
Sources
The regulation and official pages this page is checked against. If one of them disagrees with us, it wins.
- Master Direction β Credit Card and Debit Card (Issuance and Conduct) Directions, 2022 β Reserve Bank of India
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