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Zero Forex Credit Card: Avoid Forex Markup, DCC and Other Charges

Key Takeaways

Zero Forex Markup helps you save on the bank’s forex markup when spending internationally.
Pay in the local currency to avoid Dynamic Currency Conversion (DCC) and its associated costs.
Pair Zero Forex Markup with rewards, travel perks and other features that suit your lifestyle.

31 Oct 2026 by Team FinFIRST

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Forex Markup Vs. DCC

Forex markup is a fee credit cards add when you pay in a foreign currency, this fee costs up to 3.5% of the transaction value plus an18% GST applies on that markup fee.

For example, at a 3.5% markup, ₹1 lakh spent abroad can cost ₹4,130 extra. A zero-forex markup credit card removes this fee on eligible spends.

Another cost to watch is dynamic currency conversion (DCC), this charge is different from forex. DCC applies when a merchant or ATM offers to bill you in rupees abroad, charging a conversion fee at a rate it chooses. This could mean, you need to pay extra and the way to avoid it is choosing to pay in the local currency.

Let’s go into the details.

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What is a zero-forex markup credit card?

A zero-forex markup credit card does not add its own conversion fee on eligible international transactions.

A foreign payment moves through three steps:

The merchant bills you in a foreign currency, such as euros or dollars.
The card network converts the amount into rupees at its exchange rate.
The card-issuer adds its markup, which is 0 on a zero-forex card.

Zero forex removes only the third step. Conversion still happens, and the network rate still applies so watch out for them.

When can forex markup apply?

Forex markup can apply to any payment that settles in a currency other than the Indian rupee. Common cases include:

Overseas spends - shopping, hotels, flights and dining abroad

Foreign websites - international online stores and subscriptions

Professional payments - software, education fees and business tools

Cross-border billing - purchases made from India but charged in a foreign currency

How are credit card forex charges calculated?

The issuer applies its markup percentage to the converted amount and then adds 18% GST on the markup alone, not on the full purchase. The formula is:

Effective cost = Forex markup × 1.18

This table shows the effective cost at different markup rates:

Forex markup	Effective cost after GST	Cost on ₹1 lakh
3.5%	4.13%	₹4,130
3%	3.54%	₹3,540
2%	2.36%	₹2,360
1%	1.18%	₹1,180
0%	0%	₹0

How much can you save with IDFC FIRST Bank's zero forex credit card?

IDFC FIRST Bank offers zero forex markup across all its credit cards. On ₹1 lakh of international spends, a 3.5% markup adds ₹3,500, and GST adds ₹630 on top. You get a total savings of ₹4,130 with IDFC FIRST Bank zero forex markup credit card.

The table below shows this benefit at different spend levels.

International spend	Markup saved	GST saved	Total saving
₹25,000	₹875	₹157.50	₹1,032
₹50,000	₹1,750	₹315	₹2,065
₹1 lakh	₹3,500	₹630	₹4,130
₹3 lakh	₹10,500	₹1,890	₹12,390
₹5 lakh	₹17,500	₹3,150	₹20,650

What is dynamic currency conversion or DCC?

DCC is an option where an overseas merchant or ATM offers to charge you in rupees instead of the local currency. The merchant or ATM provider chooses the exchange rate and may add a markup.

DCC can apply even with a zero-forex card, because the merchant, not your issuer, levies the charge.

For example, a shop in France may ask whether you want to pay EUR 100 or the INR equivalent. Assume the network rate is ₹100 per euro, so EUR 100 converts to ₹10,000. A DCC rate of ₹104 shows ₹10,400, which is ₹400 more. Choosing euros saves that ₹400.

*Rates shown above are illustrative

Should you pay in INR or local currency abroad?

Local currency is the better choice, because paying in INR may trigger DCC. Pay in euros in France, dollars in the US and dirhams in the UAE. At ATMs, select 'Decline conversion' and continue in the local currency.

Always remember the key rule: zero forex card + local currency payment = maximum savings

How to avoid hidden currency conversion costs

Follow this checklist for every international payment:

Use a zero forex markup credit card

Pay in the local currency

Decline DCC at the terminal

Check the currency on the screen before entering the PIN

Enable international transactions in the IDFC FIRST Bank app

Check reward eligibility for foreign spends

Review ATM charges separately

Carry a backup card

Review the final card statement

Does zero forex mean there are no other charges?

Zero forex covers the issuer's markup only. These charges are separate:

Network rate - still applies and may differ from search engine rates

DCC - a conversion cost added by the merchant or ATM

ATM withdrawals - cash advance fee, ATM fee and interest may apply

Card fees - joining or annual fees depend on the card

Reward rules - rewards and zero forex are separate benefits

Refund value - may change with exchange-rate movement

Pre-authorisation holds - hotels and car rentals may block part of the limi

How to choose a zero forex credit card

Compare these factors before choosing:

Zero forex scope - in-store and online coverage

International rewards - points on foreign spends

Card fees - joining and annual charges

Travel perks - lounge access and benefits

Cash charges - ATM and withdrawal costs

Eligibility - criteria and card type

Domestic value - rewards on everyday spends

To judge whether an annual fee pays off, use this formula:

Zero forex on IDFC FIRST Bank credit cards

Zero forex markup is available across all IDFC FIRST Bank credit cards. You can choose a card based on rewards, travel benefits, eligibility and fees instead of a separate card only for international spends. Eligible international spends continue to earn rewards as per card terms.

FIRST Wealth Credit Card (Lifetime Free)

10X Reward Points on international spends

1 complimentary domestic airport lounge visit every quarter

1 complimentary international airport lounge visit every quarter

Zero forex markup

FIRST Select Credit Card (Lifetime Free)

10X Reward Points on international spends

1 complimentary airport lounge visit every quarter

Free trip cancellation cover

Zero forex markup

FIRST Millennia Credit Card (Lifetime Free)

10X Reward Points on international spends

4 complimentary railway lounge visits every quarter

Zero forex markup

Mayura Credit Card

Up to 40X Reward Points on eligible card spends and travel bookings through the IDFC FIRST Bank Mobile App

4 complimentary domestic airport lounge visits, including 1 guest visit, every quarter

4 complimentary international airport lounge visits every quarter

2 complimentary golf rounds or lessons every quarter

Zero forex markup

Ashva Credit Card

Up to 40X Reward Points on eligible card spends and travel bookings through the IDFC FIRST Bank Mobile App

4 complimentary domestic airport lounge visits, including 1 guest visit, every quarter

2 complimentary international airport lounge visits every quarter

2 complimentary golf rounds or lessons every quarter

Zero forex markup

Choose the card that fits your lifestyle and enjoy the same forex savings wherever you go.

Conclusion

International spending doesn't have to come with extra costs. With the right credit card and a few smart choices, such as paying in the local currency and avoiding unnecessary conversion charges, you can make your money go further abroad. Explore IDFC FIRST Bank Credit Cards and choose the one that best fits your travel, rewards and lifestyle preferences.

Frequently Asked Questions

What is a zero forex markup credit card?

A zero forex markup credit card does not charge an additional issuer fee on eligible international transactions. The card network converts the foreign currency amount into rupees using its applicable exchange rate, but the bank does not add a forex markup. All IDFC FIRST Bank Credit Cards offer zero forex markup.

Is zero forex markup the same as no currency conversion?

No. International transactions must still be converted into rupees using the card network’s exchange rate. Zero forex markup means your card issuer does not add an extra percentage-based fee to the converted amount on eligible transactions.

Should I pay in INR or local currency abroad?

Always choose the local currency. Paying in INR may trigger Dynamic Currency Conversion, or DCC, where the merchant or ATM provider sets the exchange rate and may add a markup. At an overseas ATM, select “Decline conversion” and continue in the local currency.

Can DCC apply to a zero forex markup credit card?

Yes. DCC is charged by the overseas merchant or ATM provider, not your card issuer. A zero forex markup card removes the issuer’s markup, but you may still pay a higher conversion rate if you choose to complete the transaction in INR.

Does zero forex markup apply to online transactions?

Yes, it can apply to eligible online payments made in a foreign currency, including international shopping, overseas subscriptions, software and education payments. International transactions must be enabled on your credit card before making the payment.

Is a zero forex credit card better than a forex card?

It depends on how you spend. A zero forex credit card does not need to be reloaded and may earn rewards on eligible transactions. A prepaid forex card can be useful for setting a fixed spending limit or locking in an exchange rate before travelling.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.