Planning a trip outside India? Maybe you’re heading to Thailand for a vacation, Dubai for work, or the UK to study. This choice can save you money or cost you extra, especially with credit card fees and card transaction fees. In this easy-to-read blog, we’ll explain the differences, share tips for Indian travelers, and help you pick the best credit card in India for international use. We’ll keep it simple and include all the keywords you asked for!
What Are Debit and Credit Cards?
Let’s start with the basics about types of credit cards and debit cards in India:
- Debit Card: This card takes money straight from your bank account when you pay. It’s like using cash, but with a card.
- Credit Card: This lets you borrow money from the bank to pay now and repay later. If you don’t pay on time, you might face a credit card interest rate.
Both cards work abroad, but they come with different benefits and costs, like credit card overseas transaction fees. Let’s see which one suits you.
Why Fees Are a Big Deal When Traveling
When you use a card outside India, you’re not just paying for your coffee, hotel, or shopping. You’re also paying extra charges that can add up fast. Here’s what to watch out for:
1. Foreign Currency Fee: When you buy something in dollars, euros, or another currency, banks add a fee (usually 1-3.5%) to convert your rupees. This happens with both debit and credit cards.
2. Credit Card Overseas Transaction Fee: Most bank credit cards in India charge an extra 1-3% for purchases abroad.
3. ATM Fees: Using a debit card to take out cash overseas can cost ₹100-₹300 per withdrawal, plus a conversion fee.
4. Credit Card Interest: If you don’t clear your credit card payments on time, you’ll pay high interest (24-36% a year in India).
5. Annual Fees: Some credit cards have a yearly cost, which can cancel out any travel benefits.
Cards for Overseas Spending Advantages and Disadvantages
Advantages
- No Debt: You only spend what’s in your bank account, so you won’t owe money later.
- Works Everywhere: Most debit cards (Visa or Mastercard) are accepted worldwide.
- Best Travel Debit Card in India: Cards like the HDFC EasyShop Platinum Debit Card or SBI Global Debit Card have okay exchange rates and lower ATM fees abroad.
Disadvantages
- Higher Fees: Debit cards often charge more for card transaction fees when used overseas, especially for cash withdrawals.
- No Extras: Unlike credit cards, debit cards don’t give you rewards, free airport lounge visits, or travel insurance.
- Risky: If someone steals your debit card details, they can take money straight from your account, which is a headache when you’re traveling.
Top Credit Cards for Overseas Travel in India
Picking the best credit card for overseas travel depends on how much you spend and what you want. Here are some great options for 2025, keeping credit card fees and rewards in mind:
- Why It’s Good: Only 2% foreign currency fee, free lounge visits, and points for booking flights or hotels.
- Best For: Regular travelers who want a hdfc bank credit card with nice perks.
- Why It’s Good: No annual fee and cashback on online buys, making it a best credit card deal for those on a budget.
- Best For: People who want a axis credit card apply with low costs.
- Why It’s Good: Low 1.99% foreign transaction fee and extras like gift vouchers and lounge access.
- Best For: Travelers who want a sbi credit card to use overseas with good value.
Standard Chartered Smart Credit Card
- Why It’s Good: A 0 transaction fee credit card for some purchases and cashback on overseas spending.
- Best For: Those who want a standard chartered smart credit card with no yearly fee.
ICICI Bank Sapphiro Credit Card
- Why It’s Good: Great for international trips with free lounge access and travel insurance.
- Best For: Big spenders looking for a icici card for overseas travel.
Tips for Indian Travelers
- Credit Card for Foreigners in India: If you’re not an Indian citizen but live here, try cards like the ICICI Bank Coral Credit Card or a prepaid HDFC ForexPlus Card, which are easier to use abroad.
- My Zone Credit Card Benefits: The Axis Bank My Zone Credit Card is good for young travelers, with discounts on food and movies, but its 3.5% foreign fee is high.
- Forex Cards: In India, prepaid cards like the HDFC ForexPlus Card or SBI Multi-Currency Forex Card let you load foreign currency at a fixed rate, saving you from credit card overseas transaction fees.
I am a digital marketing executive as well as content writer in the income tax and credit cards category. My goal is to provide simple, interesting and reliable information to readers through my articles so that they always stay updated with the world of income tax and credit cards.
