We often end up paying high foreign currency markup fee. Here you purchased a product or service on a website and made a payment of say, Rs. 6000/-. But when you check the statement you discover that an extra of Rs. 248/- has been charged as consolidated FCY Markup fee or Currency conversion Markup Fee including GST. An additional foreign currency conversion markup fee is charged you use a credit card, be it HDFC, or SBI, ICICI or any other. We will examine whether we can avoid paying foreign currency conversion markup fee. If not, how to reduce the amount charged as FCY conversion markup fee.
Meaning of Foreign Currency Markup Fee
First thing first. What is foreign currency markup fee ? Now when someone shops abroad or for that matter, on a website whose payment gateway is not in India, the credit card company will charge him or her a fee for the convenience provided by them. This is a fee for enabling her to make the transaction. This is called foreign currency transaction markup fee or Foreign currency conversion markup fee.
The fees is generally 3.5% of the amount spent. GST or IGST will be additional. So when you buy a hosting service online from a website whose payment gateway is not in India by spending Rs. 5000, you will end up paying Rs. 5125 plus GST.
How to Save on Foreign Currency Markup Fee
But there is a way out and you can save money. You can go for a credit card which charge lower foreign currency markup fee in comparison to other
1.Regalia Credit Card – HDFC
- Complimentary Airport Lounge Access through Priority Pass Membership
- Low Foreign Currency Mark-up Fee of 2% on international transactions
- 15,000 bonus points every year on spends of Rs. 8 Lacs (wef 1 April 2018)
Fees and Charges
- First Year Membership Fee – Rs. 2500/- + Applicable Taxes, Renewal Membership Fee – Rs. 2500/- + Applicable Taxes
- Welcome Benefit of 2500 Reward Points and renewal benefit of 2500 Reward Points (applicable only after the membership fee is realized and not applicable when the fee is waived off)* Terms & Conditions Apply
- Spend Rs. 3L in 12 Months and get Renewal Fee waived for next renewal year
2. YES FIRST Exclusive Credit Card
- Preferential Foreign Currency Markup of 1.75% only
- Welcome and Renewal Reward Points
- Get 50,000 Reward Points on your first transaction done within first 90 days of card set up datea
- Enjoy Renewal Benefit of 40,000 Reward Points on each renewal
- 12 Reward Points per INR 100 spent on Travel Agencies & Tour Operators, Domestic Airlines and Dining
- 6 Reward Points per INR 100 spent on all other categories
Annual membership fees
- First Year Membership Fee of Rs 10,000 + Applicable Taxes
- Renewal Membership Fee of Rs 10,000 + Applicable Taxes
3. Indusind Signature Legend Travel Credit Card
- Benefit from discounted foreign currency mark-up till 31st March 2020.
- Enjoy a waiver on foreign currency mark-up on your foreign currency transactions till 31st March 2020
- (foreign currency mark-up will be charged at 1.8%).