Cardholders should still check how a merchant processes an international payment. Paying in Indian rupees through dynamic can involve a merchant or ATM conversion rate and separate charges. Therefore, customers should review the currency choice before approving a transaction. IDFC FIRST Bank advises customers to choose the local currency when paying abroad to receive the zero forex markup benefit.
Other costs can also remain. ATM withdrawals, cash advances, and transaction-specific fees may follow separate rules. The card network’s exchange rate can also affect the final rupee amount. Zero forex markup removes the bank’s additional foreign-currency markup, but it does not make every overseas transaction free.
For customers who mainly use forex cards to avoid credit card markup, the change gives them another payment option. However, forex cards and credit cards use different fee structures. Customers should compare exchange rates, withdrawal charges, loading fees, rewards and acceptance before choosing how to pay abroad.
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