What is Markup Fee in Credit Card?

Hey Pal,

If you frequently travel overseas or do business internationally, you could consider credit cards to be one of the greatest ways of payment for purchases made in foreign countries. However, some customers are hesitant to use their credit cards to make purchases in another currency because credit cards charge fees for these kinds of transactions. Markup fee credit card is also known as "foreign currency markup fee" for overseas purchases, but it is also unquestionably true that credit cards make these transactions exceedingly easy and rapid.

The price that credit cards impose when you use them to make international purchases or purchases in a different currency is referred to as the foreign currency markup fee (also known as the Forex markup fee). This cost might range from 0.99% to 3.5% depending on the credit card used. The following situations allow the charging of this fee:

• whenever you conduct a retail transaction abroad.

• when you conduct a foreign currency online transaction (inside or outside of India).

• when you take out money from a foreign ATM.

• when you make a purchase from a store in India whose POS system is connected to a global account that accepts payments in a foreign currency.

Your card company will charge you a forex mark up fee in credit card, which is often a percentage of the total transaction value when you make a purchase or transaction in a different currency. 3.5% of the total amount is the standard markup cost for foreign currency on Indian credit cards. Let's say you transact in US dollars. The sum will then be converted to Indian rupees on your card, after which a fee of 3.5% of the amount will be applied. Let's say you spend USD 150 on a purchase.

This value will now be converted into Indian Rupees, which will equal Rs. 11,100 if we assume that 1 USD = 74 Rs. If your card charges a 3.5% markup on foreign exchange, that amount will be Rs. 388.5, making the total amount you must pay for this transaction Rs. 11,488.5.

Some credit cards may even have no foreign exchange transaction fees, making them the best options for making international purchases. If you frequently conduct business overseas, you should search for credit cards with minimal markup fee credit cards.

Read More:

Last year when I was travelling abroad to visit my sister I realized that there are many foreign transaction fees that slip into our entire transaction when we are travelling abroad and it can be very expensive. But luckily I had an international credit card which had no forex markup fees. It saved me a lot of money. So, if you're wondering what is markup fee in ICICI credit card or any bank credit card, I can help you out.

What is markup fee on credit card for ICICI bank credit card?

ICICI bank and all of the other banks that issue credit cards usually charge a forex markup fee. This markup fee is charged when you make foreign transactions using your credit card. Even though these credit cards enhance your convenience in foreign countries with just a swipe they also cost you a lot because of the extra forex markup charges. These forex markup charges may end up amounting to a lot over a certain period of time. Most of the time credit card issuing companies like ICICI Bank charge three to 3 to 3.5 per cent of the transaction amount as forex markup charges.

What is markup fee in HDFC credit card?

HDFC Bank provides different kinds of international credit cards which have different ranges of forex markup fees. They provide credit cards with low forex markup fees of approximately 2 to 3% which is in general lower than the standard level of 3.5% which is usually charged by other banks. If you have certain super premium cards you may also be eligible to get some bonus reward points on international transactions with HDFC.

This is what is mark up fee on credit card.