Best credit cards with no foreign transaction fees
Planning a foreign trip but worried about the heavy foreign transaction fees while withdrawing cash from ATMs or purchasing things through credit cards in a foreign land? Don't worry about anything; we have brought some of the best-prepaid cards and credit cards with no foreign transaction fee. Read on to find out more.
When purchasing goods or withdrawing cash from an ATM in a foreign country, international travelers often encounter foreign transaction fees. You can avoid foreign transaction fees when you use a debit or credit card that doesn't charge foreign transaction fees. It's a good thing that many credit and debit cards offer this benefit to those crossing borders. Thus, choosing the right credit card can not only earn you benefits for international transactions, but also give you exclusive privileges, discounts on bookings, and complimentary lounge access.
What Is a Foreign Transaction Fee?
A foreign transaction fee is charged by a credit card issuer or bank for every transaction made outside your country. It varies based on the terms and conditions of the credit card or bank but usually falls between 1% and 5%. You should always check the terms and conditions of a card before making any assumptions. International fees may also be charged by payment processing networks such as Visa, Discover, Mastercard, and American Express. Card issuers can opt to exclude this fee from card terms, but if they don't, the network's fee will be added to any fees they charge. In most cases, foreign transaction fees appear separately on your billing statement.
Zero Foreign Transaction Credit Cards in India?
People often choose a credit card for hassle-free payments abroad because there are so many options available. But foreign transaction fee (foreign currency markup fee) is charged with most credit cards available in India. However, many banks have developed credit cards with zero forex markup in response to the burden this can place on travelers. Check out these credit cards with no foreign currency markup fees in India:
RBL World Safari Credit Card
World Safari Credit Card from RBL Bank is among the top credit cards that don't charge foreign transaction fees. The 0% markup fee on all foreign transactions offers a memorable travel experience. Travelers can save 2-4% on foreign currency transactions with their credit cards. A voucher worth Rs. 3000 is included with the card, and travelers earn travel points every time they spend. Hotel and flight bookings can be made using these points. There are also some milestone benefits associated with the card, depending on how much money you spend. The company also offers complimentary travel insurance, which covers trip delays, personal liability, passport loss, baggage loss, and dental treatment.
The RBL World Safari Credit Card is ideal for frequent travelers. The card offers travel benefits such as activation, reward points, and lounge access apart from travel insurance. Getting this card might be a good idea if you frequently travel internationally and use your credit card extensively.
Club Vistara IndusInd Bank Explorer Credit Card
The Club Vistara IndusInd Bank Explorer Credit Card is another card with zero foreign currency markup on all international transactions. A Luxe Gift Card, a gift voucher worth Rs. 25,000, and a lot more are provided to users on payment of the joining fee. Cardholders receive a complimentary Club Vistara Gold Membership with priority check-in, additional baggage allowance, and priority boarding benefits.
Users of the card can enjoy premium benefits, such as complimentary membership, hotel stays, airport lounge access, and much more. You can also take advantage of benefits in other categories, such as shopping, entertainment, and dining. Vistara also plans to provide more benefits to its loyal customers with this credit card.
Axis Burgundy Private Credit Card
Axis Burgundy Private Credit Card (the One Card) was launched to cater to the ultra-HNI segment of the Indian population. The card is available to private banking customers and offers a range of transaction benefits, such as no foreign exchange markup on international payments and no cash withdrawal fees. There are also several lifestyle and entertainment benefits associated with this card, such as 24X7 concierge services, 50 complimentary rounds of golf, unlimited lounge access, and complimentary hotel and dining memberships.
Moreover, it provides travel insurance with air accident coverage up to Rs. 4.5 crore, as well as lost card liability and purchase protection.
Best Prepaid Cards
The concept of prepaid credit cards is relatively new in India. A prepaid credit card works similarly to a credit card; money is deposited before use and one can only spend up to the amount deposited. Money available for use is deposited in advance, so there are zero to nil chances of default, and a good credit score is not needed. Therefore, prepaid cards are suitable for those who cannot maintain a good credit score, thereby limiting their chances of qualifying for credit cards.
SBI Foreign Travel Card
The State Bank of India has launched its Foreign Travel Card, available in nine currencies, including Dollars (USD), Pound Sterling (GBP), Euros (EUR), Canadian Dollars (CAD), Australian Dollars (AUD), Japanese Yen (YEN), Saudi Riyals (SAR), Singapore Dollars (SGD) and UAE Dirhams (AED). Currency options are extensive. The maximum amount that can be uploaded to it is $2,50,000.00, which is higher than the maximum amount offered by other companies.
TravelCard – Multi-Currency Forex Card
The HDFC Bank and VISA have partnered to offer a travel card that can be used abroad to withdraw liquid cash and make payments. There are three currencies available for loading, including the U.S. dollar (USD), the euro (EUR), and the pound sterling (GBP). There are no joining and annual fees and the card offers good cashback on utility bills.
Kotak Spendz Prepaid Card
Keeping large amounts of money and making purchases is now possible with the Kotak Mahindra Spendz Prepaid Card. Cashbacks on this card are unlimited and there is no lower limit. You can earn cashback on all kinds of purchases. Spendz allows you to withdraw money from ATMs, an important feature.
Travelers who frequently fly internationally on business or vacation should always search for a credit card with international lounge access or one that offers other travel benefits based on their annual fee and signing bonus. Not only will this make your travel journey a great experience, but you will also save a bit of money.
Thanks for posting this. But I noticed today only.
Recently I travelled abroad and discovered there are huge transaction fee applied on our credit/debit cards.
Following I would like to add more here:
Traveling internationally is an exciting experience, but it can also be expensive if you're not careful with your finances. One way to save money while traveling abroad is by using a credit card with no foreign transaction fees. Here are some of the best credit cards with no foreign transaction fees:
Chase Sapphire Preferred: This card offers 2x points on travel and dining and 1x point on all other purchases. The annual fee is $95, but the card offers a generous sign-up bonus and benefits like trip cancellation insurance and rental car insurance.
Capital One Venture Rewards: This card offers 2x miles on every purchase, and the miles can be redeemed for travel expenses like flights and hotels. The annual fee is $95, but the card offers a sign-up bonus and benefits like travel accident insurance and roadside assistance.
Discover it Miles: This card offers 1.5x miles on every purchase, and the miles can be redeemed for travel expenses. The card has no annual fee and offers a sign-up bonus, as well as benefits like trip cancellation insurance and rental car insurance.
Wells Fargo Propel American Express: This card offers 3x points on dining, gas, travel, and streaming services and 1x point on all other purchases. The card has no annual fee and offers a sign-up bonus, as well as benefits like cell phone protection and rental car insurance.
Bank of America Travel Rewards: This card offers 1.5x points on every purchase, and the points can be redeemed for travel expenses like flights and hotels. The card has no annual fee and offers a sign-up bonus, as well as benefits like travel accident insurance and rental car insurance.
When choosing a credit card with no foreign transaction fees, it's important to consider your spending habits, travel plans, and the card's benefits and fees. By using a credit card with no foreign transaction fees, you can save money on your international travels and enjoy your trip with peace of mind.