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WordsThe extra on foreign spends

Forex markup

A percentage a card charges on top of the exchange rate when you pay in a foreign currency, with GST added to it. Each bank sets it per card and lists it in the MITC; HDFC Bank’s, for example, shows 3.5 per cent on many of its cards.

The rate underneath is the card network’s; SBI Card’s MITC, for example, uses the one on the day the payment settles, and keeps its fee when a purchase is refunded. Paying in rupees doesn’t always avoid a markup: from May 2026, HDFC Bank’s MITC adds 1.75 per cent to rupee payments made abroad or to merchants in India that are registered overseas.

Where this comes from

  1. HDFC Bank, Key Fact Statement cum MITC for Credit CardsVersion 4.12, 30 September 2026: Part I, A) i. fee table, A) iii. (p) and L) GST
  2. SBI Card, Most Important Terms and ConditionsCorrect as on 25 September 2026: N, other charges, foreign currency transaction fee

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What a card really charged you abroadIs zero-markup actually zero?

More words like it

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    Dynamic currency conversion

    When a shop, site or ATM abroad offers to charge you in rupees. It often costs more, and banks can add a fee on top.

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  • GST

    Goods and services tax

    18 per cent, added on top of a card's fees, interest and markups. The bank doesn't add it to what you spend.

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  • PP

    Priority Pass

    A lounge membership some cards include, for more than 1,900 airport lounges around the world.

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  • MITC

    Most important terms and conditions

    The bank's own document listing a card's fees, interest, billing and rules. RBI's rules make every card issuer give you one.

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What happened to members, not financial advice. Offers change, so check with the bank. Terms of use