IDFC FIRST Bank Restores Reward Points on Zero-Forex-Markup Card Spends Abroad

IDFC FIRST Bank has brought back reward points on international credit card transactions that carry zero forex markup, according to reporting by Moneycontrol.com. For cardholders who travel abroad or shop on international websites, this means transactions in foreign currency can once again earn reward points while the bank continues to waive the currency conversion markup that most Indian card issuers charge.

The move effectively restores a combination that had become rare in the Indian credit card market: no forex markup and reward points on the same overseas transaction. Typically, banks that waive the currency conversion fee compensate by excluding those transactions from reward point accrual, or by capping rewards heavily. IDFC FIRST Bank's reported change removes that trade-off for its cardholders.

For someone using an IDFC FIRST Bank credit card during a foreign trip or for an online purchase billed in dollars, euros or any other foreign currency, this development means two benefits that used to be mutually exclusive can now be had together.

Key takeaways

• IDFC FIRST Bank has restored reward points on international spends made through cards that already carry zero forex markup, per Moneycontrol.com.
• Most Indian credit cards charge a forex markup of roughly 2% to 3.5% on every foreign currency transaction, added quietly to the billed amount.
• Cards offering zero forex markup had typically excluded or capped reward points on those same transactions — this change removes that restriction for IDFC FIRST Bank cardholders.
• The combined effect: lower total cost on overseas spends and full reward point accrual, rather than having to choose one or the other.
• The reported change applies specifically to IDFC FIRST Bank's zero-forex-markup card variants, not necessarily to every card in its portfolio.
• Cardholders should confirm the applicable card variant and reward rate directly with the bank before relying on this for an upcoming trip.

How forex markup works on Indian credit cards

Whenever you swipe or tap an Indian credit card for a transaction billed in a foreign currency — whether at a shop in Bangkok, a hotel in Dubai, or an international e-commerce website — the card network (Visa, Mastercard or RuPay) converts that amount into rupees using its prevailing exchange rate. On top of that converted amount, most banks add a cross-currency or forex markup fee, generally in the 2% to 3.5% range, before billing you.

This fee is separate from GST, which is also charged on the markup itself under standard card issuance practice. It is one of the more overlooked costs of using a regular credit card abroad, because it doesn't show up as a distinct line item at the point of sale — it only becomes visible once the statement arrives.

Banks that want to attract travellers and online shoppers who spend in foreign currency have increasingly launched zero-forex-markup cards, usually positioned as travel or premium cards, sometimes carrying an annual fee. The trade-off card issuers have generally used to manage the cost of waiving this fee has been to strip out reward points on foreign currency spends, since rewards themselves represent a cost to the bank.

Reward points on foreign currency spends: the usual trade-off

On a standard, non-forex-markup-free credit card, a foreign currency transaction typically earns reward points at the same rate as a domestic transaction, but you absorb the markup cost. On a zero-forex-markup card, the more common structure has been to either:

1. Exclude foreign currency transactions from the reward point programme entirely.
2. Cap the number of reward points earned per statement cycle on such spends.
3. Offer a reduced points-per-rupee rate specifically for foreign currency transactions.

IDFC FIRST Bank's reported restoration of reward points on its zero-forex-markup cards suggests the bank is now treating international spends the same way as domestic ones for reward purposes, while still not charging the markup. This is a meaningfully more generous structure than what most of the market currently offers.

Worked example: what this could mean in rupee terms

Consider a cardholder spending ₹1,00,000 over a week-long international trip, split across hotel bookings, dining and shopping, all billed in foreign currency.

Scenario	Forex markup charged	Extra cost on ₹1,00,000 spend	Reward points earned
Regular card, no forex waiver	~3% (typical band)	₹3,000 + GST	Usually full rate
Older-style zero-forex-markup card	0%	₹0	Often excluded or capped
IDFC FIRST Bank card, post-restoration (as reported)	0%	₹0	Reported to be restored at applicable rate

The figures in the first two rows use standard market forex markup ranges and typical reward-exclusion practices seen across Indian card issuers; they are illustrative, not specific to any one bank's published rate card. If IDFC FIRST Bank cardholders are now earning rewards on the full ₹1,00,000 in the example above without the ₹3,000-plus markup, the combined saving — in avoided fees plus reward value — could meaningfully change the economics of using this card as a primary travel card, compared to carrying a second card purely for domestic rewards.

Who benefits and who doesn't

This change is likely to matter most to:

• Frequent international travellers who put most of their trip spending on a single card for tracking and reward consolidation.
• Online shoppers who regularly buy from international websites billed in foreign currency (electronics, subscriptions, software, overseas retail).
• Cardholders who had previously split spending across two cards — one for domestic rewards, one for forex-fee-free overseas spends — purely because no single card offered both benefits.

It matters less to cardholders who rarely transact in foreign currency, and to those whose primary IDFC FIRST Bank card is not one of the zero-forex-markup variants — the reported change is tied specifically to that category of card, not the bank's entire card portfolio.

What to do now

Before your next international trip or foreign currency purchase, it is worth doing a short review of your card setup:

1. Check which IDFC FIRST Bank credit card you hold and confirm with the bank, or your card's terms and conditions, whether it is one of the zero-forex-markup variants covered by this change.
2. Look up the current reward point rate applicable to international spends on your specific card — issuers sometimes apply a different (though no longer zero) rate for foreign transactions even after restoring rewards.
3. Compare this against any other card you use for travel, factoring in both the forex markup you'd otherwise pay and the reward value you'd otherwise miss.
4. If you're planning significant overseas spending — a trip, a large online purchase in foreign currency — consider consolidating that spending on the card that now offers both benefits, rather than splitting it.
5. Keep an eye on your statement for the first cycle after the change to confirm reward points are indeed being credited on foreign currency transactions as expected.

If you're weighing whether a travel-focused credit card fits into your broader borrowing and spending plan, it can help to check your overall interest rates picture across products before deciding which card to prioritise.

Common mistakes to avoid

• Assuming the change applies to every IDFC FIRST Bank credit card rather than specifically to its zero-forex-markup variants.
• Not checking whether an annual fee applies to the card variant that offers this combination, which could offset some of the savings for occasional travellers.
• Overlooking that GST is still charged on card transactions generally, even where the forex markup itself is waived.
• Treating reward points as equivalent to cash savings without checking their actual redemption value, which varies by card and redemption channel.
• Forgetting to check current eligibility criteria if you're considering applying for this card variant specifically to access the benefit.

Outlook

If accurate, this reported change puts IDFC FIRST Bank's zero-forex-markup cards in a stronger competitive position among cards aimed at Indian travellers and online shoppers who transact internationally. Other issuers that currently exclude rewards on forex-fee-free cards may face pressure to reconsider that structure if this combination proves popular with cardholders. For now, treat this as a reported development worth verifying directly with the bank rather than an assumption to build travel plans around blindly.

For more updates on how Indian banks are changing card and loan terms, see the news hub, and to work out what a card-funded purchase would cost if converted to EMI, the EMI calculator can help with the arithmetic.

Frequently asked questions

Does this change apply to all IDFC FIRST Bank credit cards?

Based on the reporting, the change is tied to IDFC FIRST Bank's zero-forex-markup card variants specifically, not the bank's entire card portfolio. Cardholders should confirm with the bank which of their cards is covered.

What is a typical forex markup fee on Indian credit cards?

Most Indian credit cards charge a forex or cross-currency markup in the range of roughly 2% to 3.5% on transactions billed in a foreign currency, added on top of GST, though the exact rate varies by issuer and card variant.

Why do zero-forex-markup cards usually exclude reward points on foreign spends?

Reward points cost the issuing bank money, funded largely through interchange revenue. Waiving the forex markup already reduces that revenue on a transaction, so many issuers have historically excluded or capped rewards on the same transaction to manage costs.

How can I check if my card is covered by this change?

The most reliable way is to check your card's terms and conditions on the IDFC FIRST Bank website or contact customer support directly, since the reported change applies to specific zero-forex-markup card variants rather than all cards issued by the bank.

Does this affect EMI conversions on foreign currency purchases?

Not directly — forex markup and reward points relate to the transaction itself, while EMI conversion involves separate interest and processing charges. If you're considering converting a large foreign currency purchase to EMI, it helps to run the numbers through an EMI calculator first.