Several times as an Indian Traveller, you have to spend in other currencies, whether for buying air miles or for paying food bills and many other spends. These spend get charged a high Forex markup by banks. This is coupled with earning reward points less than the value of the forex markup paid. But some credit cards charge a low or standard forex markup but compensate them with high reward points. And, such credit cards will only be a handful of credit cards. Here are the best Credit Cards for your International Spends.
What sort of Credit cards are shortlisted?
A credit card which either has low foreign currency markup than the industry standard foreign currency markup or gives bonus points on international spending is shortlisted. For bonus points, it is also checked whether the credit card points give significant value over the forex markup.
In India Industry standard foreign currency markup is 3.5%, with an additional 18% on account of GST.
How to choose your credit card for International transactions?
To choose your credit card for international spending, you must know the nature of your expenses and the points you earn.
For Example, SBI CashBack Credit Card gives 5% cash back on every online transaction. And it has a 3.5% forex markup. When you make online international spending, this card gives back 0.87% after charging for forex markup. Whereas for most cards, this could be negative. But there could be cards that give back more than 0.87%, like American Express Platinum Credit Card, but not everybody is eligible.
So, for you, there could be multiple credit cards in a wallet based on eligibility, nature of spending, the quantum of forex-markup, base point and bonus points earned.
Best Axis Bank Credit Cards for International Spending
If there’s one Bank that knows how to structure its credit cards, then it has to be Axis—especially their HNI’s credit Cards. Besides, only two Axis Bank credit cards can save a ton of forex-markup you usually pay.
The Best Axis Bank Credit Cards for International Spending are:
| Credit Card | Forex-Markup (Ex-GST) | Bonus Rewards | Why does It work? |
| BURGUNDY PRIVATE Credit Card | 0.00% | NA | Zero Forex-Markup 15 eDGE Reward for every INR 200 Spent |
| Axis Reserve Credit Card | 1.5% | 2x | Lowest Chargeable Forex-Markup in Industry 30 (15*2) eDGE Reward on Every INR 200 Spent |
| Axis Bank Magnus Card | 2% | NA | Low Forex-Markup Milestone Benefit on INR 1 Lac Spending 12 eDGE Reward on Every INR 200 Spent |
| Axis Bank Atlas Credit Card | 3.5% | NA | Five eDGE Miles on Direct Travel Spends on Every INR 100 Spent |
| Axis Bank Ace Credit Card | 3.5% | NA | 2% CashBack on Every Transaction |
| Axis Bank Signature Credit Card With Lifestyle benefits | 3.5% | 2x | 20 eDGE Reward on Every INR 200 Spent |
Best HDFC Bank Credit Cards for International Spending
Of all the Banks, HDFC has the highest number of Credit Cards that charge low forex-markup. Not many are aware of HDFC Global Value Program. This program gives 1% cashback on International Spending. So, using a low forex-markup card and HDFC Global Value Program can save money.
Here are the best HDFC Bank Credit Cards for International Spending:
| Credit Card | Forex-Markup | Why does it work? |
| HDFC Bank Infinia | 2% | Low Forex-Markup 5 Reward Points for Every INR 150 Spent (1RP=INR1) |
| Diners Club Black Credit Card | 2% | Low Forex-Markup 5 Reward Points for Every INR 150 Spent (1RP=INR1) |
| HDFC Bank Regalia Credit Card | 2% | Low Forex-Markup 4 Reward Points for Every INR 150 Spent (2RP=INR1) Milestone Rewards |
| Diners Club Privilege Credit Card | 2% | Low Forex-Markup 4 Reward Points for Every INR 150 Spent (2RP=INR1) 2x Reward Points on Weekend Dining |
| Tata Neu Infinity HDFC Bank Credit Card | 2% | Low Forex-Markup 1.5% Cashback |
| Regalia First Credit Card | 2% | Low Forex-Markup 4 Reward Points for Every INR 150 Spent (1RP=INR0.3) Milestone Rewards Annual Fees INR 1000/- |
To save more on International Spending, you should enrol for HDFC Global Value Program.
Best Amex Credit Cards for International Spending
Unlike other Credit Cards issuers, Amex doesn’t have a reduced forex markup for its credit cards. That’s even true for Amex Platinum Travel Credit Card. But they still make a sound credit card for International Spending.
The Best Amex Credit Card for International Spending:
| Credit Card | Forex-Markup Ex-GST | Bonus Reward | Why does it work? |
| American Express Platinum Credit Card | 3.5% | 3x | 3x Rewards on International Spend 3 (1*3) Reward Points for Every INR 40 Spent Reward Points Never Expires |
| American Express Platinum Travel Credit Card | 3.5% | NA | Good High International Spend up to Milestone Spend Milestone Benefit at INR 1.9 Lac and INR 4 Lac Reward Points Never Expires |
| American Express Membership Rewards Credit Card | 3.5% | NA | Suitable for 20K International Spending in a month 1000 Bonus Points on 4 Transaction Above INR 1500 1000 Bonus Points on INR 20K transactions in a month after enrollment Reward Points Never Expires |
Best SBI Credit Cards for International Spending
Although SBI Elite and SBI Aurum Credit Cards have a forex markup of 1.99%, but reward rate is not up to the level of Premium Credit Cards. There’s only one SBI Credit Card that works well for International Spending. However, it is only beneficial for Online International Spends.
This card is SBI Cashback credit card. As you earn 5% cashback with a limit of INR 5K every month and forex-markup being around 4.13%, including a GST of 18%, this card still saves you 0.87%.
Best Yes Bank Credit Cards for International Spending
Last year in Oct’2022, Yes Bank made some changes to Reward Points earnings and made it slightly better than earlier. This made Yes Bank Credit Cards worth considering for International Spends. These Yes Bank Credit Cards are the Best Cards for International Spending:
| Credit Card | Forex-Markup | Why does it work? |
| Yes Private Credit Card | 1.75% | 24 Reward Points on Every INR 200 International Spend 1RP=INR 0.25 |
| Yes Bank Reserv Credit Card | 1.75% | 24RP on Every INR 200 Spent on Online Spending 12RP on Every INR 200 Spend on Offline spending 6RP on Every INR 200 Spend on Select spending Subscription Program to Earn 5x/3x Reward Points 1RP=INR 0.25 |
Best HSBC Credit Cards for International Spending
I was surprised to see a HSBC Credit Card making it to the list. But it has its solid reasons. However, this HSBC credit is not for everyone.
The Best HSBC Credit Card in India for International Spending is HSBC Premier Mastercard Credit Card.
Here is why the HSBC Premier Mastercard Credit Card makes it to our list:
- Low Forex-Markup of 1.99%
- Zero Annual Fees
- Reversal of Forex-Markup on Calendar year spend of INR 20 Lacs (Saving of INR 39.8K and INR 10K Taj Voucher)
- 1 Lac CV Points on Spend of INR 50 Lac in a year
- Reward Points Never Expires
- 1:1 Points Transfer on British Airways, Etihad Airways and Vistara
Although there are better credit cards for Annual Spending of INR 50 Lac in a year and INR 20 Lac, as this card comes with Zero Annual Fees, it isn’t going to pinch your pocket.
Best Kotak Mahindra Bank Credit Card for International Spending
Kotak has several Credit Cards but none worth holding. However, Privy League Signature Credit Card seems a bit better due to its Quarterly milestone benefit and low markup of 2%. Also, this card comes with two plans. You can choose either of these plans, the Shopper’s or Traveller’s plans. International spending earns five reward points on every INR 100 spent in Traveller’s Plan and two reward points in Shopper’s Plan. So, you must choose Traveller’s Plan to earn better reward points on International Spending.
If you get this card free, you’ll pay a forex markup of 3.5%. And, if you get this card with an Annual Fee of INR 2500, you will pay a 2% of forex markup. Also, if you spend INR 1000 every three months of the quarter, you will earn a bonus of 6400 reward points worth INR 1600; before the pandemic, cardholders used to get four movie tickets instead of 6400 reward points. The 6400 bonus reward points benefit may be switched to PVR tickets or other partners. This card works due to bonus reward points and a 1.25% reward rate on International Spend under Traveller’s Plan.
Best IDFC First Bank Credit Card for International Spending
IDFC First Bank has made a name for itself in just a few years. It has some great credit cards, and they keep it simple. Every reward point is worth INR 0.25, irrespective of the credit card. And, two credit cards make up the list of IDFC First Bank Credit Cards for International Spending.
| Credit Card | Forex-Markup | Why does it work? |
| IDFC First Wealth Credit Card | 1.5% | Zero Annual Fees 1.25% to 2.5% Reward Rate Reward Points Never Expires |
| IDFC FIRST WOW! Credit Card | 0% | Anyone can get it against FD Zero Annual Fees 1.25% Reward Rate on All Spends Reward Points Never Expires |
Apart from the above two Cards, IDFC FIRST Select Credit Card has a 1.99% forex markup and a decent reward rate.
Best Standard Chartered Credit Card for International Spending
All Standard Chartered Bank Credit Cards have a 3.5% forex markup. Even the Standard Chartered Ultimate Credit Card has a 3.5% forex markup. But it is reduced by way of cashback. For every International Transaction, you earn 1.5% cashback, effectively reducing your forex markup to 2.63%. On this card, you earn five reward points for every INR 150 spent, with one reward point worth INR 1. That means you effectively save 0.7% on this card. Another benefit of this card is insurance, which covers emergency Medical Expenses of USD 25000 while travelling abroad. Also, there is no history of devaluation of Standard Chartered Ultimate Reward Points, making it a great card with no fuss whatsoever.
Best Credit Card for International Spending in India (Overall)
The Best Credit Cards for International Spending in India are:
| Credit Card | Forex-Markup | Why does it work? |
| Axis Reserve Credit Card | 1.5% | Lowest Chargeable Forex-Markup in Industry 30 (15*2) eDGE Reward on Every INR 200 Spent |
| HDFC Bank Infinia | 2% | Low Forex-Markup 5 Reward Points for Every INR 150 Spent (1RP=INR1) |
| Axis Bank Magnus Card | 2% | Low Forex-Markup Milestone Benefit on INR 1 Lac Spending 12 eDGE Reward on Every INR 200 Spent |
| American Express Platinum Credit Card | 3.5% | 3x Rewards on International Spend 3 (1*3) Reward Points for Every INR 40 Spent Reward Points Never Expires |
| Diners Club Black Credit Card | 2% | Low Forex-Markup 5 Reward Points for Every INR 150 Spent (1RP=INR1) |
| Yes Bank Reserv Credit Card | 1.75% | 24RP on Every INR 200 Spent on Online Spending 12RP on Every INR 200 Spend on Offline spending 6RP on Every INR 200 Spend on Select spending Subscription Program to Earn 5x/3x Reward Points 1RP=INR 0.25 |
| SBI Cashback Credit Card | 3.5% | 5% Cashback on Online Transaction |
| IDFC FIRST WOW! Credit Card | 0.00% | Anyone can get it against FD Zero Annual Fees 1.25% Reward Rate on All Spends Reward Points Never Expires |
Bonus: How do Banks protect you when you make an International Transaction?
In my experience on Axis Magnus, Axis Bank Blocks the credit card once you have made an Online International Transaction, even if you have enabled it for International Transactions. And then, you received a call to confirm that you have made the transaction. Once confirmed, it will take 24 hours to get the card unblocked. Whereas HDFC Bank calls to confirm that you have International Spending, and if not confirmed, your card is blocked.
Also, Credit Cards come with Limited Liability if you have lost them.
So there are checks in Place at Banks to save you from International Fraud.
Bottomline
International travel is rising and will Increase as our readers use their points and Airmiles for travelling abroad. While travelling Internationally, a significant amount could be spent on which you may pay a hefty forex markup. But these credit cards are best for International Spending as you save money and earn good reward points. So, International Spending can also be managed well with an excellent credit card.
