What are Foreign Transaction Charges ?

Modified on Fri, 30 Sep 2022 at 03:12 PM

The following charges apply: 

up to 2.5% to 3% + Goods and Services Tax (GST)



You might be wondering why all banks charge foreign transaction charges. The forex transactions typically settle ( reach online merchants from the card issuing bank ) after 5 - 7 working days, but the bank needs to share both INR and USD amounts on the same day. To avoid currency fluctuations, the banks purchase insurance or contracts, and hence forex transaction charges that cover the cost of those contracts. 

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