What is a foreign transaction fee?

Key Takeaways

A foreign transaction fee is a charge imposed by credit card issuers when you make international purchases or transactions in foreign currencies. This fee typically ranges from 2.5% to 3.5%, which can add up quickly for frequent travellers.
IDFC FIRST Bank credit cards offer significant advantages for international travellers with zero forex markup, helping you save money on every global purchase.
In addition to low or zero forex fees, these cards come with premium travel perks like access to international airport lounges, comprehensive travel insurance, golf benefits, and concierge services, making international trips more comfortable and rewarding.

18 Sep 2026 by Team FinFIRST

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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 Credit Cards offer significant advantages over other metal credit cards.

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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 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 credit cards come with zero forex markup, so you save on every transaction during your international travels.

Whether you are dining out in Tokyo, shopping in Dubai, or paying for a subscription billed in dollars, you pay only what your purchase costs with nothing added on top.

Both cards also come with a host of premium benefits, including complimentary access to international airport lounges, golf privileges, and comprehensive insurance cover.

How to avoid foreign transaction fees

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. IDFC FIRST Bank credit cards come with zero forex markup, making them a strong option for anyone who spends internationally. Whether you are travelling abroad, shopping on global websites, or paying for subscriptions billed in foreign currency, you save on every transaction.

Use local currency
While making purchases abroad, always choose to pay in the local currency rather than Indian Rupees. If you choose INR, the merchant or ATM may apply its own conversion rate and add a separate charge called Dynamic Currency Conversion.
You may not always have local currency on hand, and this is where an IDFC FIRST Bank credit card helps. With zero forex markup, it works as well as a forex card on international trips. You can withdraw cash from ATMs across the globe with no interest for up to 45 days, paying only a cash advance fee of ₹199 plus GST per transaction.
Leverage premium credit card features

With IDFC FIRST Bank credit cards, you not only save on foreign transaction fees but also enjoy several benefits at no extra cost, including access to international airport lounges, air accident cover, and personal accident cover. These features make your international trips secure and even more enjoyable.

Conclusion

Foreign transaction fees on standard credit cards can quickly add up during international travel, often going up to 3.5%. With IDFC FIRST Bank's Ashva or Mayura Credit Cards, you pay zero forex markup 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.

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.