I travel abroad quite a bit and I’m planning to use my Kotak credit card for purchases in foreign countries, but before I do, I want to make sure I understand the foreign transaction fees clearly.
Can anyone tell me what the foreign transaction fee is on Kotak credit cards? I’ve heard that it’s usually around 3.5% of the purchase amount, but I’m not sure if that’s the same for all Kotak cards or if it depends on the specific card type. Does the fee apply to all international purchases, or are there certain categories that are exempt (like online shopping in foreign currency)?
Kotak generally charges a foreign transaction fee of about 3.5% on all international purchases. So, whenever you use your Kotak credit card for shopping, dining, or even booking flights in a foreign country, you’ll be charged this fee on the transaction amount.
For example, if you spend ₹10,000 in a foreign currency, you could end up paying an additional ₹350 as the foreign transaction fee. This is something I didn’t initially account for when I used my card abroad, so it’s definitely something to be aware of, especially if you plan on making big purchases.
Another thing to keep in mind is that this fee is charged on the transaction amount after converting it to INR. So, if the currency exchange rate changes, it could slightly alter the total cost, but the 3.5% fee stays consistent.
One tip I picked up: If you have the chance, try to use your card only for big-ticket items where the fee is easier to justify or where you’re earning good rewards points. For smaller transactions, it might be worth considering using a card with no foreign transaction fees (if you have one).
If you’re unsure or want to confirm the exact fee for your specific card, I’d suggest calling Kotak customer service at 1860 266 2666 to double-check, as sometimes different cards or offers might have slightly different terms.