Forbes has published its list of the best credit cards with no foreign transaction fee for 2026, as reported. Such cards don't add an extra charge when you pay in a foreign currency.
For you, the point is simple. Many Indian cards add a markup of about 2% to 3.5% on overseas spends, plus GST. A zero-markup card can save you that money on every trip or online order.
Key takeaways
- A foreign transaction fee, or forex markup, is an extra charge on payments made in another currency.
- Many Indian cards charge roughly 2% to 3.5%, and GST of 18% is added on that fee.
- Zero-markup cards can save thousands of rupees on a single trip.
- The Forbes list targets a US audience, so check what's available in India.
- Compare the annual fee with your yearly overseas spending before you apply.
How a foreign transaction fee works
When you pay in dollars, euros or any other currency, your bank converts the amount to rupees. It then adds its own charge on top. That charge is the forex markup.
The markup is separate from the exchange rate itself. Banks also add 18% GST on the markup. So a 3.5% markup really costs you about 4.13%.
This also applies to online shopping. If a website bills you in dollars, your card may treat it as a foreign payment. Many people miss this.
What it costs you: a worked example
Say you spend ₹1,00,000 on a trip abroad. The table below shows what different markups cost you. It includes 18% GST on the fee.
| Card markup | Fee on ₹1,00,000 | GST at 18% | Total extra cost |
|---|---|---|---|
| 3.5% | ₹3,500 | ₹630 | ₹4,130 |
| 2% | ₹2,000 | ₹360 | ₹2,360 |
| 1% | ₹1,000 | ₹180 | ₹1,180 |
| 0% | ₹0 | ₹0 | ₹0 |
The gap between the top and bottom rows is ₹4,130. That's the price of a decent hotel night in many cities. And it comes from one trip.
Who is affected
Frequent flyers and people who study or work abroad feel this most. So do parents who send money for a child's overseas fees through a card. Anyone who buys from foreign websites often is affected too.
If you never leave India and never shop on overseas sites, this news hardly changes your life. You can keep your current card.
Note that Forbes is a US outlet. Its list is likely built around cards sold there. Indian banks have their own offers, so you'll need to compare them locally.
What to do now
You don't need to rush. A few quick checks will tell you where you stand.
- Open your card's fee page and find the forex markup rate.
- Add up your overseas and foreign-currency spends from the past year.
- Multiply that total by the markup, then add 18% GST.
- Compare the result with the annual fee of a zero-markup card.
- Check the card's approval needs using our eligibility check before you apply.
Applying for many cards in a short time can hurt your credit score. So pick one card with care. You can follow more card stories on our news hub.
Frequently asked questions
What is a foreign transaction fee on a credit card?
It's an extra charge your bank adds when you pay in a foreign currency. It's often called a forex markup and is shown as a percentage of the amount.
Do zero forex markup cards really cost nothing abroad?
The markup is zero, but other costs can remain. The exchange rate, annual fee and any cash withdrawal charges still apply. Always read the fee table.
Should I switch cards because of the Forbes list?
Not automatically. Work out your own yearly overseas spend and the fee on a new card. Switch only if the saving is clearly bigger than the cost.
BankCreds analysis
This list matters less to most Indians than the headline suggests. Forbes writes for a US audience, so many of its picks may not exist in India. Don't apply for a card just because it tops a foreign list.
Who really gains
The gain depends on how much you spend abroad. Take a family that spends ₹2,00,000 on one trip. At a 3.5% markup plus GST, they lose about ₹8,260. A card with 1% markup cuts that to about ₹2,360. That's ₹5,900 saved.
If you travel once in two years, a high annual fee can wipe out the saving. Count your yearly overseas spend first. Then compare it with the fee. Zero markup helps heavy spenders most.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Source & references
- Forbes — originating report https://www.forbes.com/advisor/credit-cards/best/no-foreign-transaction-fee/
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
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Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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