POSTED BY October 8, 2012 3:18 pm COMMENTS (3)ON
My company’s credit card needs the following 2 features::
1. Lowest Forex Mark Up Rate
2. Better Forex conversion rate
We take a lot of services from vendors in the US and all payments are done by credit card, details of which are with the U.S vendors. Since there are multiple transaction of multiple vendors in a month ( about 25-30 ), thus, it is not possible to go to the bank and do individual transaction for each payment to be made.
Now, in the present scenario, the HDFC bank credit card charges a whopping 3.5% Forex Mark Up Rate. I have also checked with ICICI and AXIS and they are no better. I have a feeling that may be one of tier-2 bank will be able to provide a better rate, anyone has sugggestion for a card offering lower mark up rate?
Secondly, the dollar conversion rate, at present, is the maximum that the bank charges, there are no preferred rates given even though our transaction run in several lakhs every month. Kindly suggest how we can get this reduced esp. when payment is done through credit card??
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3 replies on this article “Suitable Credit Card for my company?”
I meant the ” Forex Mark Up” Rate which is charged by banks, it is like a commission charged on each transaction. With transactions of the tune of 6-8 Lakhs per month, even a Rupee Reduction from present 3.5% can make considerable difference.
About making payment using the Indian Credit card, yes, it does the conversion into Rupees but there is a margin of window for banks there too.
As a practice, they do give preferred rates of conversion to regular clients but i am not sure if the same system can be in place when making payments through credit card??
But if you make the payment from indian credit card wont you make the same payment just in Rupees terms , When we make some payment outside india , it shows us the currency and we can just change it , when we change it in RUPEES, it does the online conversion , are you sure on this ? ‘
What is dollar markup charges , can you explain !
Any Expert Views on this, will really appreciate?
If not the exact answer, any recommendation on the places i should look at?