3 Best Free Credit Cards for Zero Forex Fees and Charges

If you are wondering what card to use for your upcoming international travel, you should definitely check out our top picks for best credit cards with Zero Forex Charges. Forex charges are charged by banks when you use your credit card to transact in foreign currency. This charge is also known as Forex Markup Fees. Lately, thanks to fintechs, we have seen many credit cards offering zero forex fees as their key benefits.

Let’s explore some of the best credit cards for zero forex fees: AU Ixigo Card, IDFC WOW Credit Card, and Federal Bank Scapia Credit Card.

AU Ixigo Credit Card

Pros

• Zero Forex Markup: 0% forex markup on international transactions
• Reward Points: 5 reward points for every Rs 200 spent offline and 10 reward points for every Rs 200 spent online, including flight, hotel & bus bookings via Ixigo. For train bookings, you’ll receive 20 reward points for every Rs 200 spent
• Welcome Benefits: Rs 1000 Ixigo money and 1000 reward points (1 reward point = 0.50 ixigo money)
• Lounge Access: Offers one complimentary Priority Pass visit to an international lounge per year.
• Zero payment gateway charge when booking train on Ixigo
• Lifetime Free: No joining or annual fees if acquired under the lifetime free offer.

Cons

• Limited Redemption Options: Reward points are best redeemed as Ixigo money with a 1:0.5 conversion ratio. However, there’s a Rs 99 + GST fee for redemption.
• High Convenience Fees: Ixigo app charges a hefty Rs 898 convenience fee for domestic flight bookings, reducing the overall value of rewards.
• Expiry of Welcome Benefits: The Rs 1000 Ixigo money expires in 90 days with no extension options, unless you find a workaround.
• Limited to Ixigo Platform: You are restricted to using the rewards on the Ixigo platform, which can be less competitive due to high convenience fees.

Final Thoughts

The AU Ixigo Credit Card is excellent for international spending and train bookings on Ixigo, but its high convenience fees and limited redemption options may be a downside. If you got it as a lifetime free card, it’s worth keeping, but paying any fees might not justify the benefits.

IDFC WOW Credit Card

Pros

• Zero Forex Markup: Ideal for international transactions with no forex markup.
• Credit Limit: Offers a full 100% credit limit based on the fixed deposit amount, with a minimum FD of Rs 10,000 at 7.5% interest.
• Fuel Surcharge Waiver: 1% surcharge waiver up to Rs 200 per cycle.
• Complimentary RSA: Complimentary Roadside Assistance (RSA) worth Rs 1,399.
• Insurance Coverage: Includes personal accident cover and lost card liability insurance.
• Reward Points:
  • 1x reward points on insurance and utility payments.
  • 4x reward points on online, offline, and rental payments.
  • 1 reward point equals Rs 0.25.
• Welcome Offer: 5% cashback up to ₹1,000 on the first EMI transaction within 30 days of card activation (requires a minimum transaction of Rs 20,000).
• Interest Rate: 30% per annum on revolving credit.

Cons

• No Lounge Access: Does not provide access to airport or railway lounges.
• Autopay Limitation: Autopay for credit card bills is only available if you have an IDFC First Capital savings account with a minimum balance of Rs 10,000 or Rs 20,000.

Final Thoughts

The IDFC First WOW Credit Card is a solid choice for those who need a simple, FD-backed credit card with international spending benefits. However, the lack of lounge access and the requirement of an IDFC First Capital savings account for autopay might be drawbacks for some users. If you’re looking for a hassle-free card with decent rewards and no forex fees, this card is worth considering.

Note: We have also heard some mixed reviews about using this card internationally as few people got the card blocked and there was no international toll-free number. Always do your own research before applying for any card.

Federal Bank Scapia Credit Card

Pros

• Lifetime Free: No annual fees.
• Zero Forex Markup: Saves money on international transactions.
• Lounge Access: Available with a Rs 5,000 monthly spend.
• 10% Scapia Coins on All Spends: Earn points on every transaction.
• 20% Scapia Coins on Travel Spends: Higher rewards when booking via Scapia app.
• Fuel Surcharge Waiver: Additional savings on fuel.

Cons

• Limited Rewards Redemption: Scapia Coins can only be used on the Scapia platform.
• Convenience Fees: Some users may find the platform’s fees higher compared to direct bookings.

Final Thoughts

The Scapia Federal Bank Credit Card offers strong benefits, particularly for international use and travel bookings. The zero forex markup and lounge access make it attractive, but the limited redemption options for rewards might be a drawback for some. Ideal for those who can maximize the Scapia ecosystem benefits.

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