The fee printed in small type on your statement decides how much a foreign holiday really costs. Here is the rupee maths on a ₹1 lakh trip.
Short answer: As of September 2026, AU Small Finance Bank’s AU Zenith+ Metal Credit Card charges a forex markup of just 0.99%, among the lowest for a card that also offers lounge access and rewards. On ₹1 lakh of overseas spending, that is ₹1,168 including GST, compared with about ₹4,130 on a card charging the common 3.5% rate.
Indian travellers spent heavily abroad this year, from Bali honeymoons to Dubai shopping trips and college visits in Europe. Most carried a credit card as the main way to pay, because it is safer than cash and accepted almost everywhere.
What many do not notice until the statement arrives is a line called “foreign currency markup” or “cross-currency fee”, with GST added on top. On a single week-long trip, the difference between a low-markup card and a standard card can equal a nice dinner, a museum pass or a day’s hotel stay. This article explains how markup works, the hidden conversion trap at the till, and which card keeps the most money in your pocket.
What is a forex markup fee on a credit card?
A forex markup fee is the percentage a card issuer charges on every transaction made in a foreign currency, added on top of the exchange rate set by the card network. If you pay $100 in New York, the network (Visa, Mastercard or RuPay) converts it to rupees at its rate, and your bank then adds its markup percentage.
The fee also applies to international online purchases billed in foreign currency, such as a hotel booked directly on an overseas website, a US software subscription or a course fee paid to a foreign university. In other words, you can pay a markup on your credit card without ever leaving India.
Across the Indian market, standard cards commonly charge around 3.5%. Travel-focused and premium cards bring this down, and a handful of cards waive it entirely, usually with trade-offs on rewards or benefits.
How does GST on forex markup increase the cost?
GST at 18% is levied on the markup amount, so a 3.5% markup effectively costs 4.13% of what you spend. That GST line often appears as a separate entry on your statement a few days after the transaction, which is why many travellers miss it.
The same rule applies to a low-markup card, but the base is much smaller. A 0.99% markup becomes about 1.17% once GST is included. The gap between the two, nearly three percentage points, is what you save on every rupee spent abroad.
Which credit card has the lowest forex markup in India in 2026?
As of September 2026, AU Small Finance Bank’s AU Zenith+ Credit Card carries a forex markup of 0.99%, which places it among the lowest-cost premium cards for international use. It pairs that rate with a metal card body, Priority Pass lounge access and reward points valued at ₹1 each.
The broader AU Small Finance Bank range gives travellers several options depending on how often they fly and where they live.
| Card | Forex markup (as of Sept 2026) | Annual fee | Travel benefits | Best for |
| AU Zenith Credit Card+ | 0.99% | ₹4,999 (waived on ₹8 lakh annual spend) | 16 domestic + 16 international (Priority Pass) lounge visits a year; 24×7 global concierge; 2 reward points per ₹100 on international spends | Frequent international travellers |
| AU Traverse Credit Card | Low forex markup | ₹4,999 (waived on ₹6 lakh annual spend) | Domestic and international lounges; ₹5,000 MakeMyTrip welcome voucher; 4 reward points per ₹100 on international spends | NRIs with AU Small Finance Bank NRE accounts |
| Zero-markup cards (category) | 0% | Varies | Usually limited lounge or reward benefits | Users who want no fee and few extras |
| Standard cards (category) | Around 3.5% | Varies | Varies | Domestic use only |
Zero-markup cards are worth knowing about, but they often come with thinner rewards and fewer travel services. Zenith+ offsets most of its small markup through rewards, as the worked example below shows.
How much do you actually pay on ₹1 lakh of international spending? A worked example
On ₹1 lakh spent abroad, the Zenith+ markup plus GST comes to ₹1,168, while a standard 3.5% card costs ₹4,130. Here is the full calculation:
| Item | AU Zenith+ Credit Card (0.99%) | Standard card (3.5%) |
| Overseas spend in rupees | ₹1,00,000 | ₹1,00,000 |
| Forex markup | ₹990 | ₹3,500 |
| GST at 18% on markup | ₹178.20 | ₹630 |
| Total forex cost | ₹1,168.20 | ₹4,130 |
| Saving vs standard card | ₹2,961.80 | Base case |
Now add rewards. Zenith+ earns 2 reward points per ₹100 on international spends, and 1 point equals ₹1. That is 2,000 points, worth ₹2,000, on the same ₹1 lakh. Subtract that from the ₹1,168 forex cost and the trip effectively earns you about ₹832 back.
A family spending ₹3 lakh across two foreign trips a year would save close to ₹8,900 in fees alone with Zenith+ compared with a 3.5% card, before counting rewards or lounge visits.
What is dynamic currency conversion (DCC), and why should you refuse it?
Dynamic currency conversion is when a foreign shop, hotel or ATM offers to charge your card in Indian rupees instead of the local currency. Always choose to pay in the local currency.
DCC sounds convenient because you see a rupee figure at the counter. But the exchange rate is set by the merchant’s payment provider and usually includes its own margin. Worse, since the merchant is still overseas, your bank may treat it as a cross-border transaction and apply its markup as well. You can end up paying twice.
How to avoid the DCC trap:
- When the card machine asks “Pay in EUR or INR?”, pick the local currency (EUR, USD, AED, THB).
- On foreign websites, choose the local currency at checkout, not INR.
- At hotel check-out, ask the desk to bill in local currency before they swipe.
- At ATMs abroad, decline the “guaranteed conversion rate” offer.
- Check the charge slip. If it shows an exchange rate and a rupee total, DCC was applied.
How should you pay your credit card bill after an international trip?
Pay the full statement amount by the due date, because foreign transactions sit in your bill just like domestic ones and carry the same interest if left unpaid. Your spends convert to rupees on the transaction date, and the markup and GST follow as separate lines.
Cards from AU Small Finance Bank come with an interest-free period of up to 48 days, so a trip taken right after your statement date gives you the longest window to settle. For hassle-free credit card bill payment, AU Credit Card holders can pay through the AU 0101 app or netbanking, or from any UPI app using the VPA format AUCC.{registered mobile number}{last 4 digits of card}@AUBANK, confirmed with a UPI PIN.
The easiest habit of all is AutoPay. Set it to the full bill in AU 0101 before you fly, and the payment goes out automatically before the due date even if you are still unpacking.
How do you choose the right card for international travel?
Pick a card by matching three numbers to your habits: the markup, your yearly overseas spend and the fee waiver threshold. Then consider lounge access and insurance.
A quick checklist before you apply for a travel-friendly card:
- Overseas spend of ₹2 lakh or more a year? A 0.99% markup card like Zenith+ saves you thousands annually.
- Total card spend near ₹8 lakh a year? Zenith+ becomes effectively free as its ₹4,999 fee is waived.
- An NRI with AU Small Finance Bank NRE accounts? Traverse is built for global use.
- Flying often? Count lounge visits. Zenith+ offers 16 domestic and 16 international visits a year.
- Buying foreign subscriptions or courses online? Markup applies here too, so a low-markup card helps even without travel.
- Carrying an add-on card for family? AU Small Finance Bank offers up to three lifetime-free add-on cards, so everyone on the trip pays at the same low markup.
Which AU Credit Cards help on the domestic leg of an international trip?
Most overseas trips from India begin with a domestic flight, an airport cab or a long drive, and the AU Ananta Credit Card, AU Laksya Credit Card, AU Tejas Credit Card and AU Prathama Credit Card each reward a different part of that journey before you board.
A family flying from Jaipur or Lucknow to catch an international departure from Delhi or Mumbai spends in rupees first. The AU Ananta Credit Card earns 5 reward points per ₹100 on travel, shopping and dining, up to 5,000 points each statement cycle, and gives 4 complimentary domestic airport lounge visits every quarter on flights booked through AU Rewardz. Its ₹50 lakh air accident cover travels with you on the connecting flight.
The AU Laksya Credit Card offers 8 complimentary domestic lounge visits a year, two each quarter, handy for a long layover at the hub airport. The AU Tejas Credit Card gives 10% cashback on Uber, Ola and Rapido rides, so the ride to the airport costs noticeably less. The AU Prathama Credit Card suits those who drive to the airport, with a 1% fuel surcharge waiver on ₹400 to ₹5,000 transactions and up to 2 reward points per ₹100 on tap-and-pay at the food court.
Pair one of these with Zenith+ for spends abroad, and every rupee of the trip earns something back.
| Card | Annual fee & waiver | Headline benefit | Best for |
| AU Ananta Credit Card | ₹2,000 + GST; waived on ₹3 lakh annual retail spend | 4 domestic lounge visits a quarter on AU Rewardz flight bookings | Frequent flyers booking domestic connections |
| AU Laksya Credit Card | ₹1,000 + GST; waived on ₹2 lakh annual spend | 8 domestic lounge visits a year | Layovers at the hub airport |
| AU Tejas Credit Card | ₹500 + GST; waived on ₹1.5 lakh annual retail spend | 10% cashback on Uber, Ola and Rapido | Airport cab rides |
| AU Prathama Credit Card | ₹100 + GST; waived on ₹75,000 annual retail spend | 1% fuel surcharge waiver | Driving to the airport |
Conclusion
Forex markup is the quietest cost of international travel. Add 18% GST and a standard card takes more than 4% of every rupee you spend abroad, while a low-markup card keeps that close to 1%. Refusing dynamic currency conversion at the till protects the saving.
As of September 2026, AU Small Finance Bank’s AU Zenith+ Credit Card offers a 0.99% markup alongside rewards worth ₹1 a point, lounge access and a metal build. For frequent travellers, it is one of the most cost-effective cards to carry on the next trip. For the domestic flights, cab rides and lounge time before take-off, the AU Ananta Credit Card, AU Laksya Credit Card, AU Tejas Credit Card and AU Prathama Credit Card complete the travel wallet.
Frequently Asked Questions (FAQs)
which credit card has the lowest forex markup in india?
As of September 2026, AU Small Finance Bank’s AU Zenith+ Metal Credit Card charges a 0.99% forex markup, one of the lowest among premium cards with lounge access and rewards. A few zero-markup cards exist, but they usually offer fewer travel benefits. Zenith+ also earns 2 reward points per ₹100 on international spends, worth ₹1 each.
is gst charged on forex markup fee?
Yes. GST at 18% is charged on the forex markup amount, not on the full transaction. So a 3.5% markup costs 4.13% in total, while a 0.99% markup, such as on AU Zenith+ Credit Card, works out to about 1.17%. The GST usually appears as a separate line on your card statement.
should i pay in inr or local currency when abroad?
Always pay in the local currency. Choosing INR triggers dynamic currency conversion, where the merchant sets its own exchange rate, and your bank may still add a forex markup. Paying in local currency with a low-markup card such as AU Zenith Credit Card+ usually gives the best overall rate.
does forex markup apply to international online shopping?
Yes. Any transaction billed in a foreign currency attracts a forex markup, even if you are sitting in India, including foreign subscriptions, overseas hotel bookings and university fees. Using a card with a low markup, like AU Zenith Credit Card+ at 0.99%, reduces this cost on every such payment.
how much can i save with a 0.99% forex markup card?
On ₹1 lakh spent abroad, a 0.99% markup plus GST costs ₹1,168, compared with ₹4,130 on a 3.5% card, saving about ₹2,962. With the AU Zenith+ Credit Card from AU Small Finance Bank, the 2,000 reward points earned on that spend, worth ₹2,000, more than cover the forex cost.
which AU Credit Card is best for nris travelling abroad?
The AU Traverse Credit Card is designed for NRIs who hold AU Small Finance Bank NRE accounts. It offers a low forex markup, domestic and international lounge access, a ₹5,000 MakeMyTrip welcome voucher and 4 reward points per ₹100 on international spends, with the ₹4,999 annual fee waived on ₹6 lakh of yearly spending.
which au credit card gives airport lounge access for domestic flights?
AU Small Finance Bank offers domestic lounge access on two of its flagship cards. The AU Ananta Credit Card gives 4 complimentary domestic airport lounge visits per calendar quarter on flights booked through AU Rewardz, and the AU Laksya Credit Card offers 8 complimentary domestic lounge visits a year, two each quarter. Both make the domestic leg before an international departure more comfortable.
