What is Forex Markup in Credit Card? | Foreign Markup Fee Explained | Zero Forex Markup

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What is Forex Markup in Credit Card? | Foreign Markup Fee Explained | Zero Forex Markup #shorts

Today, we’re decoding a must-know term for every credit card user—foreign markup fee (also known as "forex markup fee" or "foreign transaction fee").

Q. What is a foreign markup fee?
Ans. Whenever you swipe your credit card in a foreign country or shop online from an international site, your bank applies a foreign markup fee—an extra charge on top of the actual currency exchange rate. This fee is typically 1%–3.5% of your transaction value, but some banks in India can charge up to 3.5% plus GST.

Q. How does it work?
Ans. For example, if you buy something for $100 abroad and the exchange rate is ₹83 per dollar, you’d expect to pay ₹8,300. But with a 3% markup, you'll actually pay ₹8,549 (+GST)—that’s ₹249 extra just in hidden charges!

Q. Why do banks charge this?
Ans. Banks and payment processors add this fee to cover costs and generate profit when converting currencies. It’s added "on top" of the rate you see on Google, so you always pay more than the mid-market rate.

Q. Where is it applied?
Ans. Credit card purchases abroad
Online shopping from international websites
Foreign ATM withdrawals
Overseas payments for services like online subscriptions

Tip: Some premium cards offer "zero forex" or no foreign transaction fee—compare before you travel or shop!

📢 Watch full video to learn:
How much you REALLY pay as foreign markup fee
Indian banks’ typical charges (1%–3.5%)
How to avoid or minimize these fees

💡 Comment below: Ever checked your credit card statement for foreign markup fees? Share your experience and help others save!

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