Forex markup
A fee your card adds on every foreign-currency transaction, usually about 1% to 3.5% on Indian cards, with 18% GST charged on the fee.
A forex markup is a fee your card adds on every transaction made in a foreign currency, whether you are travelling or shopping on an overseas website. On Indian cards it is usually around 1% to 3.5% of the amount, and 18% GST is charged on the fee itself, not on the whole spend. Some travel-focused cards charge a lower markup or none, so the card you use changes the cost. The markup applies to foreign-currency online orders too, and a charge shown in rupees can still count as international if the merchant is abroad. Check your card’s schedule of charges for its exact rate.
Questions people ask
What is a forex markup fee?
A fee your card charges on any transaction in a foreign currency, including on overseas websites. On Indian cards it is usually around 1% to 3.5% of the amount, and 18% GST applies on the fee, not the whole spend.
Does the forex markup apply to online foreign purchases?
Yes. If the merchant is overseas and the charge is in a foreign currency, the markup applies even when you shop from home. A charge shown in rupees can still count as international if the merchant is abroad.
How do I reduce the forex markup?
Some travel-focused cards charge a lower markup or none, so the card you use matters. When paying abroad, also choose the local currency rather than rupees, so you avoid an extra merchant markup on top. Check your card's exact rate.
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