International use of Credit Cards.

POSTED BY Jinesh Shah ON November 29, 2012 6:53 pm ONE COMMENT

I am going for a foreign trip next year. I have few queries on international use of credit cards. I have ICICI Platinum card with extra charge of approx. 4% for international transactions.

1) Do you know any Indian Credit card issuer that does’nt have ‘overloading for foreign’ transactions ?

2) What is less costly whether to convert INR to Dollar thn to local foreign currency say RMB and pay for hotels or to use agoda through credit cards. (saving INR-USD-RMB conversion).

I did some calculations and found if done through right method it could save 5-8% of money.

Anyone with experience please share your experience.

Looking forward for your reply.
Thanks, Jinesh

One reply on this article “International use of Credit Cards.”

  1. Bond Bhai says:

    As far as i know, these are the charges which Banks charge on an International transaction –
    1. Transaction fee.
    2. Currency Conversion charge
    3. The exchange rate that is applied to a transaction is the exchange rate as of the day of settlement, which is the day that settlement amount to be exchanged between the acquirer and the issuer. The settlement date is therefore typically different from the date of the actual transaction. So don’t be surprised if the exchange rate you were using for calculation differs from what has actually been used.

    These are the cons of using a CC abroad.

    I used my Debit card to pull out cash. Usually, i got in “Max amount” which i think will be needed for specific number of days. This way, you dont have to use your withdraw multiple times. The “Excess” which i was charged was in the range or 2k (if i pulled out say 500Euros). HDFC bank was kind enough to refund back the transcation charge to me 🙂

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