When you pay in a foreign currency with an Indian credit card, the bank adds a charge on top of the exchange rate. This is the forex markup. It is easy to miss, because it appears on your statement as a separate line, days later.
How much it really costs
Many cards charge 3.5%. GST of 18% is then added to that charge, so the real cost is about 4.1% of what you spend.
| You spend abroad | Markup at 3.5% | GST on markup | Extra you pay |
|---|---|---|---|
| ₹10,000 | ₹350 | ₹63 | ₹413 |
| ₹50,000 | ₹1,750 | ₹315 | ₹2,065 |
| ₹1,00,000 | ₹3,500 | ₹630 | ₹4,130 |
On a ₹1 lakh holiday, that is about ₹4,000 gone before you have earned a single reward point.
It also applies at home
Forex markup is charged on any payment made in a foreign currency, not only abroad. Paying for an app, a software subscription or an online course priced in US dollars can attract it too, even if you never leave India.
What cards on SkyloFin charge
| Card | Forex markup |
|---|---|
| Federal Scapia | 0% |
| BOBCARD Etihad Guest Premium | 0% |
| Uni GoldX | 0% |
| HSBC Live+ | 1.99% |
| Kiwi | 3.34% |
| Flipkart Axis Bank | 3.5% |
| SBI SimplyCLICK | 3.5% |
GST is added on top of these where there is a markup. See all travel cards.
The other trap: paying in rupees abroad
Card machines and websites abroad sometimes offer to charge you in rupees. This is called dynamic currency conversion, and the exchange rate it uses is usually worse. Your bank may also charge its own fee for it. Always choose to pay in the local currency.
How to pay less
- Use a zero-forex card for foreign spending, even if it is not your main card.
- Always pay in the local currency, never in rupees.
- Check if your rewards on foreign spends cover the markup. Earning 2% back while paying 4.1% is still a loss.
- Avoid cash withdrawals abroad on a credit card. They attract cash-advance fees and interest from day one.
Frequently asked questions
Is forex markup charged on international websites?
Yes, if the payment is made in a foreign currency. Some sites let you pay in rupees; the charge then depends on how the merchant processes it.
Is a zero-forex card really free abroad?
It removes the markup. The card’s other fees, and interest if you do not pay in full, still apply.
Does GST apply on forex markup?
Yes. 18% GST is charged on the markup amount, which is why 3.5% becomes about 4.1%.
This is general information to help you compare, not financial advice. Fees and features change, so check the bank’s own terms before you apply. Card figures are from SkyloFin’s card pages; card data sourced via CardAdvisor.in.
Compare every card’s markup on our international credit cards page, or work out your trip with the forex markup calculator.
Updated 18 Oct 2026.
