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How Students Can Save with Zero Forex Markup Credit Cards

Q: Can students get an FD-backed credit card?

Yes. An FD-backed credit card can be an option for students who may not have a regular income or an established credit history. The minimum FD requirement and eligibility criteria depend on the card.

Q: Can I spend more than my fixed deposit amount?

No. Your credit limit is determined by the value of your linked fixed deposit. You cannot spend beyond this limit unless you increase your deposit amount.

Q: Does 0% forex markup apply to cash withdrawals from international ATMs?

The 0% forex markup applies to purchase transactions. Standard cash advance fees and foreign ATM network charges still apply to overseas cash withdrawals.

Key Takeaways

Zero forex markup can help students reduce the additional cost of eligible international transactions.
FD-backed IDFC FIRST Bank Credit Cards offer zero forex markup along with rewards, cashback and other benefits.
Choosing the local currency instead of INR when paying abroad can help avoid potential DCC charges.
Students can choose a card based on their spending needs, rewards, UPI compatibility, lounge access and FD requirement.

25 Sep 2026 by Team FinFIRST

zero forex markup credit cards for students

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Students studying abroad may need to make international payments for more than just tuition and accommodation. These can include course subscriptions, exam fees, certification fees and other online or overseas expenses.

An often-overlooked cost behind many of these payments is forex markup, an additional charge that can increase the amount you pay on every transaction you make in foreign currency. These costs quietly pile up fast and that’s why having a zero forex credit card so important for students.

With zero forex markup, students can avoid this additional charge on eligible international transactions. They can then compare cards based on other features such as rewards, UPI compatibility, lounge access and fixed deposit requirements.

Your guide to choosing the right credit card with no annual fee

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How to check if your credit card charges a forex markup

Before using a credit card for international payments, check its forex markup rate. You can usually find this information on the card issuer's website under Fees & Charges or Terms and Conditions.

Look for terms such as:

Forex markup

Foreign currency markup

Foreign transaction fee

International transaction fee

If a credit card charges a forex markup, an additional fee may apply to eligible transactions made in a foreign currency. IDFC FIRST Bank Credit Cards offer zero forex markup on all international transactions.

How does forex markup affect students?

Students today make a wide range of international payments for their education, whether they are studying abroad or accessing global learning opportunities from home. These can include university applications, entrance exams, certification programmes, online courses, software subscriptions, accommodation, flights, and everyday expenses. When these payments are made in a foreign currency, forex markup can add to the overall cost.

For example, if a credit card charges a 3.5% forex markup, this is how the additional charge could add up:

International spend	3.5% forex markup
₹50,000	₹1,750
₹1,00,000	₹3,500
₹2,00,000	₹7,000
₹5,00,000	₹17,500

These figures are illustrative and exclude applicable taxes. If GST is charged on the forex markup, the total additional cost would be higher.

Now consider the same spends with an IDFC FIRST Bank Credit Card.

All IDFC FIRST Bank Credit Cards now offer zero forex markup on eligible international transactions. This means there is no additional forex markup on these transactions, regardless of whether you spend ₹50,000, ₹1,00,000 or ₹5,00,000.

International spend	3.5% forex markup	IDFC FIRST Bank Credit Card
₹50,000	₹1,750	₹0
₹1,00,000	₹3,500	₹0
₹2,00,000	₹7,000	₹0
₹5,00,000	₹17,500	₹0

The forex markup is separate from the exchange rate used to convert the transaction into Indian rupees. The payment network, such as Visa or Mastercard, applies the relevant exchange rate, while the forex markup is an additional charge that the card issuer may apply.

The exchange rate and forex markup are two different things. Visa or Mastercard applies the exchange rate to convert the foreign currency into Indian rupees, while the forex markup is an extra charge that the card issuer may add to the transaction.

One thing to keep in mind would be that zero-forex markup applies only to purchase transactions. If you withdraw cash overseas, standard cash advance fees, interest charges, and any fees charged by the foreign ATM network may still apply.

Best IDFC FIRST Bank Credit Cards for students

IDFC FIRST Bank offers FD-backed credit cards for students, with 100% guaranteed approval and no credit score or income history required.

Since all IDFC FIRST Bank Credit Cards offer zero forex markup, you can save on eligible international spends, regardless of the card you choose. Simply choose the FD-backed card that best suits your needs.

FIRST WOW! Credit Card

Minimum FD of ₹20,000

Lifetime-free credit card

0% forex markup

4X reward points on online, offline and international spends

Bonus rewards on hotel and flight bookings through the IDFC FIRST Bank App

Roadside assistance

Hello Cashback Credit Card

Minimum FD of ₹10,000

Zero joining fee

0% forex markup

Up to 5% cashback on online spends and 1% on in-store and UPI spends

Bonus cashback on hotel and flight bookings through the IDFC FIRST Bank App

Roadside assistance

FIRST EA₹N Credit Card

Minimum FD of ₹5,000

Zero joining fee

0% forex markup

Up to 1% cashback on UPI spends and 0.5% on all other spends

Bonus cashback on hotel and flight bookings through the IDFC FIRST Bank App

Personal accident cover

Quantum+ Credit Card

Minimum FD of ₹5,000

Lifetime-free credit card

0% forex markup

Up to 2% cashback on online spends and 1% on UPI and in-store spends

Lifetime free with no spend conditions

How to avoid DCC charges abroad

Dynamic Currency Conversion (DCC) is a service offered by some overseas merchants, websites, and ATMs that allows you to pay in Indian rupees (INR) instead of the local currency. While this may seem convenient, the exchange rate used is often less favourable and can increase the overall cost of your transaction.

When paying at an overseas shop, website, or ATM, you may be given the option to pay in the local currency or in INR.

To get the maximum benefit from zero forex markup, always choose the local currency. For example, choose US dollars in New York, yen in Tokyo, or dirhams in Dubai.

If you choose INR, the merchant or ATM provider may apply its own exchange rate and a DCC charge, which can make the transaction more expensive.

Choosing the local currency allows your IDFC FIRST Bank Credit Card to handle the currency conversion, with zero forex markup on eligible transactions.

Tips for managing international spending

Students can optimize their overseas expenses by adopting a few structured financial habits:

Track Recurring Payments: Monitor automated international subscriptions for software and entertainment to prevent unexpected balance drains.

Plan Large Expenses: Budget well in advance for high-value fixed costs like university accommodation, tuition instalments, and seasonal flights.

Pay in Local Currency: Always choose the local currency instead of INR at overseas terminals to avoid expensive Dynamic Currency Conversion (DCC) rates set by foreign merchants.

Maximize Card Rewards: Review the bank's active rewards program terms to ensure you accumulate maximum cashback or points on eligible international spending.

Frequently Asked Questions

What is forex markup on a credit card?

Forex markup is an additional percentage that a card issuer may charge when you make an eligible transaction in a foreign currency. It is separate from the exchange rate used to convert the transaction into Indian rupees.

Can students get an FD-backed credit card?

An FD-backed credit card can be an option for students who may not have a regular income or an established credit history. The minimum FD requirement and eligibility criteria depend on the card.

Can I spend more than my fixed deposit amount?

No, your credit limit is directly determined by the value of your linked fixed deposit. You cannot spend beyond this assigned limit unless you increase your deposit amount.

Does 0% forex markup apply to cash withdrawals from international ATMs?

The 0% forex markup applies strictly to purchase transactions. Standard cash advance fees and foreign network ATM provider charges still apply to overseas cash withdrawals.

Are there any hidden transaction fees on international websites?

No, there are no hidden fees. Online payments made to international websites or universities carry the same transparent 0% forex markup benefit as physical point-of-sale transactions abroad.

Is GST applicable on international transactions with a 0% forex markup card?

Since IDFC FIRST Bank charges a 0% forex markup, there is no markup fee to levy tax on. However, statutory GST applies only to the standard payment network conversion rates as per regulatory guidelines.

How can students avoid DCC charges abroad?

When a merchant, website or ATM gives you the option to pay in INR or the local currency, choose the local currency. Choosing INR may result in Dynamic Currency Conversion, where the merchant or ATM applies its own exchange rate and may charge a separate DCC fee.

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.