Science & Environment
3 Zero-Forex Credit Cards To Make Your Next Foreign…
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When the credit card user’s reward rate exceeds the forex markup imposed by the bank or issuing business, the net reward offsets the forex fees. (Representative image)
Card companies impose foreign transaction fees or forex markup fees on all debit or credit card transactions made in foreign currencies.
When planning international travel and applying for a credit card, it’s essential to be aware of the costs associated with foreign currency transactions.
Card companies impose foreign transaction fees or forex markup fees on all debit or credit card transactions made in foreign currencies. Even paying for purchases in cash comes with an exchange cost, not to mention the hassle of carrying cash around.
When the credit card user’s reward rate exceeds the forex markup imposed by the bank or issuing business, the net reward offsets the forex fees.
This benefit, however, can only be obtained by credit card users who plan to maximise rewards and reclaim fees paid.
A no-fee forex credit card can be a great alternative for the majority of tourists. These cards waive forex fees on overseas purchases. Here are three zero-forex credit cards that you can get for free:
RBL World Safari Credit Card
RBL World Safari offers free membership for the first year after which it charges Rs 3,540 (with 18 per cent GST) per year. Recovering this price is quite simple because of the card’s features, which include free foreign travel insurance, lounge access, and redeemable gift vouchers.
The card includes complimentary multi-trip travel insurance valid for at least two overseas trips. A travel insurance policy for an overseas vacation may cost between Rs 1,000 and Rs 5,000. In addition, it provides access to two local lounges every quarter and two overseas lounges per year.
On travel bookings, the card pays a 1.25 per cent reward. Additionally, the 10,000 reward points for spending Rs 2.5 lakh is highly valuable.
IDFC WOW Credit Card
This card is secured and requires a bank-fixed deposit. The credit limit is at least the same as the FD amount. The credit card offers personal accident cover, lost liability cover and roadside assistance. Cardholders can get 1 reward point on every spend of Rs 150 and its multiples.
Federal Bank Scapia Credit Card
Scapia offers the most benefits of the three alternatives, with a 4 per cent reward rate on travel bookings made through the Scapia app and 2 per cent on qualified purchases elsewhere.
All three of the cards listed above waive forex conversion fees when making international payments. Furthermore, IDFC Wow and Scapia cards are valid for a lifetime.
