Credit card users face foreign currency conversion fees when spending abroad

When using an Indian credit card abroad, a conversion mark-up fee applies, typically between 1.5% and 3.5% of the converted amount. Additionally, an 18% GST is charged on this fee. To calculate the total cost, first convert the foreign currency to Indian rupees using the card network's exchange rate. Then, apply the mark-up fee and add GST. For example, a $100 transaction at an exchange rate of ₹83.50 results in a total charge of ₹8,645.59 after fees. To minimize fees, consider credit cards with lower mark-up rates or those with no mark-up fees. Paying in local currency and using prepaid forex cards can also help reduce costs.