HSBC India offers zero forex markup on all credit cards — What this feature means for your travels abroad, explained

HSBC India is offering zero forex mark-up for across all its existing credit cards for Indian residents, for a period of one month from 15 August to 15 September, with aim to “provide better value for money to customers on international spending”.

“By introducing zero forex mark-up across all HSBC credit cards, we are ensuring customers can spend internationally with greater clarity and value, while continuing to enjoy the rewards and benefits that are already built on their cards,” said Sandeep Batra, Head of International Wealth and Premier Banking, HSBC India.

Which HSBC credit cards are included?

According to a press release from the lender, the offer is valid on all HSBC credit cards, including the:

• HSBC Premier Credit Card,
• HSBC Taj Credit Card,
• HSBC Live+ Credit Card,
• HSBC TravelOne Credit Card,
• HSBC Platinum Credit Card, and
• HSBC Prive Credit Card and HSBC RuPay Cashback Card already offer zero forex markup on all international purchases since launch in 2024 and 2025, respectively, it added.

Zero forex markup — Key highlights

• During the offer period, both merchant point-of-sale as well as online foreign currency transactions on eligible HSBC credit cards will carry zero forex markup.
• This will be in addition to existing rewards and benefits.
• “By removing the foreign exchange mark-up fee during the offer period, customers can benefit from lower costs on eligible international spends and easier budgeting, while continuing to enjoy existing card features and benefits,” the lender said.
• Additionally, the bank also reiterated that HSBC credit card holders are not charged a Dynamic Currency Conversion (DCC) fee.
• Hence, HSBC customers who choose to pay in their home currency (Rupee) instead of the local currency, while travelling overseas avoid that additional cost too. “This continues to be a standing benefit across all HSBC credit cards,” it added.

Foreign currency mark-up fee, explained

Credit cards that are allowed for use in foreign countries are subject to extra fees known as the foreign currency mark-up fee. While this fee differs from card to card and among lenders, it usually ranges between 1-3% of the transaction amount. Choosing cards with low or no foreign transaction fees for international travel or shopping can save you extra cost on each transaction in a foreign country.

According to Paisabazaar, for a $30 item bought using your foreign transaction enabled credit card, on the bank's end, the sum is converted into Indian rupees (as per the exchange rate on date of transaction) for calculation of fees. Assuming mark-up fee of 2% and that $1 is worth ₹90 at time of transaction, the calculation is as follows:

• Transaction amount = ₹2,700 ($30)
• Foreign currency mark-up fee = ₹54 (2% of transaction amount)
• Goods and services tax = ₹9.72 (18% on mark-up fee)
• Total value of transaction = ₹2,763.72 ($30.70)

You must keep in mind that credit cards have some of the highest interest rates among the various personal finance tools and have a slew of additional charges and fees attached. It is thus important to have a good idea of the full costs and risks involved and read the fine print carefully, especially in cases where the annual fees exceed the benefits or payoffs (cash back, vouchers, gifts, convenience, etc.).