HSBC India offers zero forex markup on all credit cards — What this feature means for your travels abroad, explained

HSBC India is offering zero forex mark-up for across all its existing credit cards for Indian residents, for a period of one month from 15 August to 15 September, with aim to “provide better value for money to customers on international spending”.

“By introducing zero forex mark-up across all HSBC credit cards, we are ensuring customers can spend internationally with greater clarity and value, while continuing to enjoy the rewards and benefits that are already built on their cards,” said Sandeep Batra, Head of International Wealth and Premier Banking, HSBC India.

According to a press release from the lender, the offer is valid on all HSBC credit cards , including the:

Credit cards that are allowed for use in foreign countries are subject to extra fees known as the foreign currency mark-up fee. While this fee differs from card to card and among lenders, it usually ranges between 1-3% of the transaction amount. Choosing cards with low or no foreign transaction fees for international travel or shopping can save you extra cost on each transaction in a foreign country.

According to Paisabazaar, for a $30 item bought using your foreign transaction enabled credit card, on the bank's end, the sum is converted into Indian rupees (as per the exchange rate on date of transaction) for calculation of fees. Assuming mark-up fee of 2% and that $1 is worth ₹ 90 at time of transaction, the calculation is as follows:

You must keep in mind that credit cards have some of the highest interest rates among the various personal finance tools and have a slew of additional charges and fees attached. It is thus important to have a good idea of the full costs and risks involved and read the fine print carefully, especially in cases where the annual fees exceed the benefits or payoffs (cash back, vouchers, gifts, convenience, etc.).

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

Jocelyn Fernandes is a journalist and editor with nearly 13 years of experience covering the business, corporate, economy and markets beats in news.<br> As chief content producer for around three years at Livemint (Hindustan Times), Jocelyn publishes breaking stories, explainers, features and live blogs on a range of business and economy topics, including the Budget, corporate developments, stock markets, income tax, money and personal finance, cryptocurrency, government policy, impact of US tariffs, international developments and more.<br> Jocelyn's writing philosophy is focused on delivering news in an accurate and accessible format for readers.