Country guides usually start with the currency. That is the least useful thing to know. Four charges decide your cost, and they apply almost everywhere. The forex markup. The 18% GST on that markup. The ATM withdrawal fee abroad. And dynamic currency conversion at the terminal.
Get those four right and the country barely matters. Get them wrong and you can lose 6% to 8% of your spending money, whichever passport queue you are standing in.
How much does each payment method actually cost?
The comparison below uses forex markups from our own card dataset, as of 15 August 2026. GST on the markup is 18%.
| Method | Typical markup | Cost on ₹1,00,000 spent, with GST | Watch out for |
|---|---|---|---|
| Ordinary Indian credit card | 3.5% | About ₹4,130 | Cash advance charges if you use it at an ATM |
| Low-markup credit card | 2% | About ₹2,360 | Usually carries an annual fee |
| Zero-markup credit card | 0% | Nil | Rare; check it is genuinely zero, not discounted |
| Prepaid forex card | Set in the exchange rate you are given | Depends on the rate loaded | Reload, ATM and unused-balance fees |
| Cash from a money changer | Set in the rate spread | Depends on the rate | Airport counters give the worst rates |
Read that table one way only: the markup is a real, avoidable cost. On a two-week trip spending ₹1,00,000, moving from a 3.5% card to a 2% card saves about ₹1,770. Our forex markup calculator runs it on your own numbers.
A prepaid card is not automatically cheaper. Its charge is buried in the rate you are quoted at load time, not shown as a percentage. Ask for the rate and compare it against the live mid-market rate on our exchange rates page before you sign.
What is dynamic currency conversion, and why does it cost so much?
The terminal abroad asks whether you want to pay in rupees or in the local currency. Choose rupees and the merchant’s bank does the conversion at a rate it picks. That rate is usually worse than your own bank’s.
Always pay in the local currency. Always. It is the single highest-value habit on this page and it costs nothing to adopt.
The same trap appears at foreign ATMs. The machine offers a rupee amount with a conversion. Decline it and let your own bank convert.
How much foreign exchange can you buy for a trip?
The Reserve Bank’s Liberalised Remittance Scheme allows all resident individuals, including minors, to remit up to USD 2,50,000 per financial year, running April to March. Private visits to any country are a permitted purpose, except Nepal and Bhutan, which sit outside the scheme.
That limit is far above what a holiday needs, so for most travellers it is not a constraint. It matters if you are also paying overseas tuition, buying foreign shares, or supporting family abroad in the same year. All of it counts against the same annual ceiling.
Tax collected at source applies to remittances under the scheme, under section 206C(1G). The rate and the threshold have changed more than once and differ for education and medical spending. TCS is not a tax you lose — it is credited against your income tax when you file. Our TCS on remittance calculator holds the current rate.
How should you split cash and card by destination?
We do not hold verified card acceptance data by country, and we are not going to publish a table of guesses. What we can give you is the rule that works.
| Item | Details |
|---|---|
| Carry enough cash for the first day, always. | Airport transfer, a meal, a SIM card. Buy it in India, from a money changer in the city, not at the airport counter. |
| Card first in high-card economies. | Western Europe, the UK, Singapore, the UAE, Australia and the United States run largely on cards. Cash is a backup there. |
| Cash-heavier in much of Asia and Africa. | Small vendors, transport and markets often take cash only, even in cities where malls take cards. |
| Japan is the exception people get wrong. | It is a rich country that still uses a lot of cash outside big chains. |
| Never rely on one card. | Carry a second card from a different issuer and network. Blocks and declines abroad are common. |
Tell your bank you are travelling before you go. Many Indian cards have international usage switched off by default, and turning it on from abroad is painful.
Which card should you carry abroad?
On our card data as of 15 August 2026, the useful split is simple.
If you travel abroad once a year or less, a lifetime-free card with a low markup does the job. A markup near 2% instead of 3.5% saves roughly ₹1,500 on every ₹1,00,000 spent, and the card costs nothing to hold between trips.
If you travel often, a fee-paying travel card can pay for itself through lounge access and a low markup together. Work out the fee including 18% GST first, then check it against what you will actually spend.
Debit cards are usually the worst option abroad. Markups tend to be similar and the money leaves your account immediately, which makes a disputed transaction much harder to unwind.
What to do when you get back
Two things, and both are usually skipped.
Check the statement line by line. Foreign transactions post days later and the markup is often shown separately. That is where you will see whether dynamic currency conversion caught you.
Deal with the leftover balance on a forex card. Unused foreign currency can attract inactivity or unloading fees. Either spend it down, or unload it back to your bank account promptly.
If you regularly send money abroad rather than carry it, the pricing works differently again. Our remittance services comparison covers that route.
Frequently asked questions
Is it better to carry cash or a card abroad?
Card for most spending, cash for the first day and for small vendors. Cards give you a traceable rate and dispute rights. Cash protects you when a terminal is down or a card is blocked.
How much foreign currency can I take out of India?
Under the RBI’s Liberalised Remittance Scheme, a resident individual may remit up to USD 2,50,000 per financial year. Private visits to any country except Nepal and Bhutan are a permitted purpose. Separate rules limit how much of that you may carry as physical currency notes, so check with your bank before you buy cash.
What is the forex markup on an Indian credit card?
Most Indian cards charge 3.5% on international spending, with 18% GST on top of that fee. A few charge 2% or less. On ₹1,00,000 of spending the difference is roughly ₹1,770.
Should I pay in rupees or local currency abroad?
Local currency, every time. Paying in rupees at a foreign terminal is dynamic currency conversion, and the rate is set by the merchant’s bank rather than yours. It is almost always worse.
Do I get the TCS on my forex purchase back?
Yes. Tax collected at source under section 206C(1G) is credited against your income tax liability when you file your return. Keep the certificate the bank or money changer issues.
Sources
- Reserve Bank of India, FAQ on the Liberalised Remittance Scheme — https://www.rbi.org.in/scripts/FAQView.aspx?Id=115 (read 6 September 2026)
- Forex markups: Credsir card dataset, as of 15 August 2026. GST of 18% applies on the markup fee.
- Not verified here: the current TCS rate and threshold under section 206C(1G), and any per-country card acceptance data. We have named the provision and linked our calculator instead of quoting a figure.
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