What is a foreign transaction fee?

Travelling abroad can be an enriching experience, offering exposure to new cultures, cuisines, and landscapes. However, managing your finances during international travels can sometimes be challenging, especially when it comes to costs like foreign transaction fees. Whether you're dining at a Michelin-star restaurant in Paris or shopping for luxury goods in Milan, you could face additional fees every time you use your credit card for international purchases. This is where IDFC FIRST Bank’s Ashva and Mayura Credit Cards offer significant advantages over other metal credit cards.

What Is a foreign transaction fee?

A foreign transaction fee is an additional charge levied by credit card issuers when you make purchases outside your home country or in a foreign currency. This fee typically covers the cost of currency conversion and processing international transactions. For frequent international travellers, these fees can add up quickly, making it crucial to choose a card that minimises or eliminates such charges. IDFC FIRST Bank’s Ashva and Mayura Credit Cards are designed to cater to customers who like to live life large, offering exceptional value by keeping foreign transaction costs low or completely waived off.

How much does a foreign transaction fee cost?
 

Foreign transaction fees typically range between 2.5% and 3.5% of the transaction amount. For instance, if you were to spend ₹1,00,000 on an international purchase, a 3.5% fee would cost you an additional ₹3,500. By the end of your trip, you’d have spent a significant amount, which could have been used for shopping for things that truly matter to you. Fortunately, IDFC FIRST Bank’s Ashva Credit Card offers an incredibly low forex markup fee of just 1%, allowing you to save more during your international travels.

The Mayura Metal Credit Card goes a step further, by eliminating the forex markup fee and offering an interest-free period on cash withdrawals until the due date, making it an ideal choice for those who frequently engage in international transactions.

Both the Ashva and Mayura Metal Credit Cards come with a host of premium benefits, such as offering complimentary access to international lounges, golf benefits, and comprehensive insurance coverage.

How to avoid foreign transaction fees
 

1. Choose a card with low or zero foreign transaction fees
   

The most straightforward way to avoid these fees is to select a card that offers low or zero foreign transaction charges. The IDFC FIRST Bank Mayura Credit Card, with its zero-forex markup, is a perfect option for elite travellers who frequently spend internationally. Similarly, the Ashva Metal Credit Card offers a remarkably low 1% forex markup fee offering considerable savings on every transaction abroad.


2. Use local currency
   

While making purchases abroad, try to pay in the local currency rather than your home currency. This ensures you avoid additional conversion fees imposed by foreign merchants. However, you may not have access to local currency in urgencies and this is where your Mayura Credit Card can prove beneficial. With zero forex fee and an interest-free period, the Mayura Credit Card is as good as a forex card for all your international trips. You can withdraw cash from ATMs across the globe without any interest until the due date by only paying the cash advance fee of just ₹199 + GST per transaction.


3. Leverage premium credit card features
   

With IDFC FIRST Bank’s Ashva and Mayura Credit Cards, you not only save on foreign transaction fees but also enjoy several benefits at no extra cost like access to international airport lounges up to 4 times every quarter (depending on the card), air accident cover of ₹1 crore and personal accident cover of ₹10 lakhs, comprehensive travel insurance of USD 1200 covering loss/delay of baggage, loss of passport and documents, delayed flights, etc. These features make your international trips secure and even more enjoyable.

Conclusion

Foreign transaction fees on standard credit cards can quickly add up to a lot of money during international travels, often going up to 3.5%. By opting for IDFC FIRST Bank’s Ashva or Mayura Credit Cards, you can significantly reduce or even eliminate these fees while enjoying a range of exclusive benefits. Whether it's luxury travel privileges, zero forex markup fees, or interest-free cash withdrawal, these cards are designed to meet the needs of elite customers, making every international experience smoother and more rewarding.