Using Your Indian Credit Cards Abroad: Things to Remember

An increasing number of Indians are traveling to foreign countries in recent years. There are many who want to treat themselves or their loved ones to a foreign holiday while others are business travelers who tend to fly to these destinations quite often. When you are traveling abroad you don’t want to carry huge amounts of cash to take care of your everyday expenses. That’s quite understandable and that’s where International cards come into the picture and offer you the cutting edge advantage.

Can I use my Indian Credit Card abroad is the question many are faced with before they embark on their travels. The answer to that question is a yes in case it’s a Visa or MasterCard that allows you to make transactions internationally. You are better off checking these details with your company to ensure that you are not short changed at the last minute. However another important question you need to ask yourself is what are the charges that will be involved in case you use your Indian card to buy or pay for things abroad. There are many who have ended up paying through their nose for these transactions, which is why it’s important to know more about them.

Additional charges when you use your card abroad

Using your Credit Cards in foreign destinations can definitely have its advantages but you have to remember that there are additional costs that are involved in many instances too. That’s because of the fees charged by the issuing bank and those from network service providers like VISA or MasterCard. These additional fees are applied because of the costs that are involved in currency conversion. Hence it’s important to make a note of that when you are drawing out your expenses for your holidays.

Understanding different types of extra charges in detail

Since you have an Indian card, your balance will be in rupees. However since you are spending abroad it will have to be converted into the desired currency, which is why there is a foreign currency conversion fee that you are charged. Around 2.5 to 3.5% of the total transaction amount is charged as Foreign Transaction Charge, which is irrespective of currency, cash withdrawal or the money you have spent. You are charged Cash advance fee back home, but the charges are much higher when you withdraw money overseas.

Choosing the right card to spend money abroad

If you tend to travel to foreign countries quite often then you have to think about the transaction and cash withdrawal fees you are charged before applying for a card. Pay attention to the fine print on the offer document before you sign on the dotted line. It’s possible to find a card that is more suited to spending overseas. You also have to realize that if you pay off your entire outstanding amount, you will be able to keep the charges down as they are often high in case you have made minimum payments.

Your Indian Credit Card can be used to spend money abroad but you have to be aware of the transaction charges involved.