I recently made an online purchase from a foreign website using my HSBC credit card and noticed extra charges. What exactly is the international transaction fee in India?
When I first looked into using my HSBC credit card for international purchases, I wanted to know the exact fees involved. A colleague of mine who recently traveled abroad explained the charges in detail, and I also checked what others were saying on finance forums. Here is a clear breakdown of what you can expect when using your HSBC credit card overseas.
Standard Foreign Currency Markup Fee for HSBC Credit Card International Transaction Fee India
A friend shared that HSBC typically charges around 3.5 percent of the transaction value as a foreign currency markup. This means if you spend 100 USD abroad, you would end up paying an additional amount in fees converted into INR.
GST on HSBC Credit Card International Transaction Fee India
Another user mentioned that apart from the markup, GST is also applied on the fee itself. This makes the effective cost slightly higher than just the stated percentage.
Currency Conversion Charges for HSBC Credit Card International Transaction Fee India
Someone on a finance forum explained that transactions are first converted into USD by Visa or Mastercard and then into INR by HSBC. This two-step process can sometimes result in a slightly higher effective rate than expected.
Using HSBC Credit Cards Abroad
One of my colleagues pointed out that while the fees are on the higher side, if you use an HSBC Premier or Travel card, you may get value back through reward points, travel benefits, or lounge access, making it a reasonable choice despite the charges.
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