What specific fees are applied when using the AU Small Finance Bank credit card for transactions involving foreign currencies? Are there any foreign exchange markup fees, conversion fees, or other additional costs? How are these charges calculated (e.g., a percentage of the transaction amount)?
The foreign exchange markup fee on AU Small Finance Bank credit cards is a percentage of the total transaction value. For regular foreign transactions, the AU NOMO Credit Card is more economical due to its reduced markup price. Depending on the currency, credit card networks may charge extra fees. Fees for cash withdrawals, such cash advance fees, are recommended. Use a credit card with a reduced markup cost, keep up with promos, and carefully read your credit card’s terms and conditions to avoid these penalties.
When using your AU Small Finance Bank credit card for foreign currency transactions, a foreign currency markup fee typically applies. This fee is generally around 3% of the transaction amount. This fee covers the costs associated with currency conversion and processing international transactions.
For example, if you make a purchase of ₹10,000 in a foreign currency, the markup fee would be approximately ₹300. This amount would be added to your credit card bill.
It’s important to note that AU Small Finance Bank may also charge GST at 18% on this fee, depending on the applicable regulations.
To minimize these charges, consider the following tips:
Use a Forex Card: AU Small Finance Bank offers forex cards with competitive exchange rates and lower transaction fees. These cards are specifically designed for international travel and can help you save on foreign transaction fees.
Opt for a Credit Card with No Foreign Transaction Fees: Some credit cards offer zero or reduced foreign transaction fees. For instance, the AU Zenith+ Credit Card charges a 1.99% foreign currency markup fee, which is lower than the standard rate.
For more detailed information on fees and charges, you can refer to the official AU Small Finance Bank website: