The options compared
| Currency markup | TCS above ₹10 lakh a year | Watch out for | |
|---|---|---|---|
| Zero-markup credit card | None | No: credit card spends abroad aren't counted under LRS | Cash withdrawals are expensive on any credit card |
| Regular credit card | Often 2% to 3.5%, plus 18% GST on it | No | The markup adds up on big spends |
| Forex prepaid card | Built into the loading rate; a fee if you spend a currency you didn't load | Yes, 20% (2% for education or medical) | Issuance, reload and ATM fees; GST when you load |
| Zero-markup debit card | None | Yes | ATM fees; money leaves your account straight away |
| Foreign currency cash | The money changer's rate | Yes | Loss or theft; customs limits |
TCS isn't an extra tax: it's credited to your PAN and set against your tax when you file. But it ties up money until then. See TCS on forex cards and foreign trips.
What a markup costs
On ₹1 lakh of spending with a 3.5% markup: ₹3,500 of markup plus ₹630 of GST on it, so ₹4,130 in all. A zero-markup card saves that.
Real cards, from their own published fees
Checked on each issuer's website on 21 October 2026. Fees change: confirm before you apply or travel.
| Card | Type | Currency markup | Other charges published |
|---|---|---|---|
| Scapia | Credit card (Federal Bank, Axis Bank or BOBCARD) | Zero | Zero joining and annual fees |
| ixigo AU | Credit card (AU Small Finance Bank) | Zero on spends outside India | Lifetime free for a limited period, per the bank |
| Niyo Global | Debit card, with a partner bank | None over the Visa rate | ATM fees depend on the partner bank: check the app |
| HDFC Multicurrency Platinum ForexPlus | Forex prepaid card | 2% if you spend a currency you haven't loaded | ₹500 + GST to issue, ₹75 + GST per reload, USD 2 per ATM withdrawal in USD |
Many other cards offer low or zero markup. These are examples whose fees we could check on the issuer's own page, not a ranking.
GST when you buy currency or load a card
Buying foreign currency or loading a forex card carries GST on the conversion. Under one of the valuation methods in the GST rules, the taxable value is 1% of the amount up to ₹1 lakh (at least ₹250), so GST is ₹180 on ₹1 lakh and at least ₹45 on any amount.
How to choose
- Most spending by card: a zero-markup credit card has no markup and no TCS. Pay the bill in full: interest is far costlier than any markup.
- You want a fixed rate or a set budget: a forex card locks the rate when you load it. Load the currencies you'll spend.
- You don't use credit cards: a zero-markup debit card avoids markup, but counts under LRS.
- Carry two cards from different networks, in case one is declined.
This compares published fees. It isn't a recommendation of any card.
Common questions
Is a forex card better than a credit card abroad?
A zero-markup credit card has no markup and no TCS. A forex card locks your rate when you load it, but counts under LRS and has its own fees. It depends on how you'll pay.
Is TCS charged on credit card spending abroad?
No. The Ministry of Finance said in 2023 that international credit card spends while overseas aren't counted under LRS.
What is the forex markup on credit cards?
Often 2% to 3.5% on regular cards, plus 18% GST on the markup. Some cards charge none.
Is GST charged on buying foreign currency?
Yes, on the conversion. Under one valuation method, GST is 18% on 1% of the amount up to ₹1 lakh, at least ₹45.
Two ways to sort this
Do it yourself
- Check your current card's currency markup.
- Compare a zero-markup card or a forex card for your trip.
- Load the currencies you'll actually spend.
- Claim any TCS in your return.
Let an expert do it
We claim your TCS back in your return and check your foreign spending is reported correctly.
The first chat is freeWork it out for yourself
- Income tax: old vs new: Which regime leaves more in your account.
- Credit card EMI: The real cost of converting a purchase to EMI.
TCS you pay comes back against your tax. See what you owe.
Open the income tax calculatorSources
- Important changes w.r.t. LRS and TCS (28 June 2023), Press Information Bureau, Ministry of Finance
- CGST Rules, 2017, rule 32(2): value of money changing services, Central Board of Indirect Taxes and Customs
- Scapia credit card: fees, Scapia (with Federal Bank, Axis Bank and BOBCARD)
- ixigo AU credit card, AU Small Finance Bank
- International debit card with zero forex markup, Niyo
- Multicurrency Platinum ForexPlus card: fees and charges, HDFC Bank
This guide explains the rules in general. For your own situation, .