A top-tier credit card with best-in-class rewards and benefits has become a key offering of Indian banks’ NRI product portfolio to cater to this segment’s global lifestyle and unique financial needs. Understanding the fees associated with the credit card and credit card transactions is crucial for making informed decisions and maximising the card's benefits. For day-to-day online purchases, airport lounge access, travel bookings, or cross-border payments, knowing the potential cost can help you optimise the card’s usage. Below we share some of the best NRI credit cards offered by Indian banks, and their associated fees.

The best NRI credit cards for payments in India

NRI credit card

Joining/Annual Fees

Card features

HDFC Bank Regalia Gold Credit Card

INR 2,500 + tax / INR 2,500 + tax

  • Zero lost card liability if reported immediately

  • Comprehensive travel insurance coverage

  • Foreign currency markup of 2% on all foreign currency spends

  • Complimentary lounge access both in India and abroad

  • Joining/annual fee waiver on meeting specified criteria/milestones

  • Attractive welcome benefits

ICICI Bank Sapphiro Credit Card

INR 6,500 + tax / INR 3,500 + tax

  • Domestic and international airport lounge access

  • Air accident insurance of up to INR 3 Cr

  • Comprehensive reward program

  • 1% waiver of fuel surcharge

  • Global acceptance and competitive forex markup

  • Enhanced security features

  • Annual fee waiver and other benefits on achieving specified spend milestones

Kotak Royale Signature Credit Card

Nil / INR 1,000

  • Attractive rewards for international spending

  • Competitive forex markup

  • Fuel surcharge waiver of up to INR 3,500 a year

  • Airport lounge access and other travel benefits

Axis Bank Magnus Credit Card

INR 12,500 + taxes / INR 12,500 + taxes

  • Attractive welcome benefits (gift cards and vouchers)

  • Airport concierge services

  • Unlimited domestic and international lounge access

  • Up to 15% discount on luxury hotels

  • Best-in-class dining and movie discounts

  • Insurance benefits

American Express Platinum Travel Credit Card

INR 3,500 + tax/ INR 5,000 + tax

  • Travel vouchers

  • Lounge access

  • E-gift cards for travel

  • Zero lost card liability

Understanding fees and applicable charges

The following are the charges and fees you will usually come across for NRI credit cards:

1. Annual fee/Joining fee

This is a signup/annual membership fee levied by the bank in exchange for the continued privilege of using the card. The amount may vary based on the card type and benefits offered. Some premium cards have higher annual fees and offer greater benefits. However, many banks have annual fee waiver benefits, generally tied to spending milestones on the card, or your total relationship value with the bank.

2. Foreign exchange markup fee

This is a fee levied by the card issuer for using the card for transactions in a currency other than INR (Indian Rupee). This can range from 0% to 3.5% of the transaction amount depending on the card. This is not the same as the similarly named ‘currency conversion fee’, which is charged by the merchant to whom you make the payment, and not the card issuer.

3. Late payment fee

Late payment fees are levied by the bank for failing to make the minimum payment on your credit card bill by the due date. These fees vary depending on the outstanding amount payable, and also from bank to bank. Late payments can significantly impact your credit score as banks report late payments to the credit rating agencies.

4. Interest charges

Interest charges will apply if you do not pay your credit card bill in full by the due date. Paying off the balance promptly is important, as credit cards typically have high interest rates.

5. Service tax and GST

All fees on your credit card such as joining/annual fee, forex markup fee, late payment fee, etc, are subject to applicable GST. Make sure to factor this in when evaluating the cost of using your credit card of choice.

6. Cash advance fees

Withdrawing cash from an ATM using your NRI credit card incurs a cash advance fee and high interest rates from the transaction date until repayment.

7. Over-limit fees

Spending beyond your credit limit can lead to over-limit fees, which can be a fixed amount or a percentage of the over-limit amount, and varies from bank to bank.

How NRI credit cards simplify international spending

  • Global acceptance of cards at almost every location ensures seamless payments regardless of your location.
  • Many NRI credit cards offer competitive foreign exchange markup fees to help effectively reduce the cost of international transactions.
  • Multi-currency transaction facilities help NRIs in hassle-free transactions in multiple countries.
  • Cashback and rewards can be used for international purchases and travel benefits.
  • Comprehensive travel insurance and lounge access offered by NRI credit cards provide peace of mind and comfort while traveling.
  • Expense tracking and security features help you to stay on top of your spending.

Tips for seamless transactions

  • Insist on use of secure networks and devices by merchants for credit card transactions to safeguard from potential threats.
  • Set up email and SMS alerts to monitor transactions on a real-time basis.
  • Get quick assistance from customer service, and keep contact information handy for any issues. Most banks operate a 24x7 credit card helpline.
  • Opt for contactless and chip-enabled payments for safe transactions.
  • Set spending limits and monitor your statements regularly.
  • Keep card-related information confidential.

Mistakes to avoid when making NRI credit card payments

Avoiding these common mistakes when using your NRI credit card will save you from unnecessary financial loss as well as ensure peace of mind.

  • Not checking high foreign markup fees, resulting in increased cost of credit card transactions. Opt for cards with lower markup fees and dynamic currency conversion.
  • Not using safe networks can lead to security risks and threats. Avoid public wi-fi and choose safe networks.
  • Missing payment deadlines can lead to late fees and interest charges. Be sure to set reminders for payment to avoid late fees and adverse impacts on your credit score.
  • Failing to monitor expenses and review statements can result in unauthorised transactions slipping by unnoticed. Make sure to check your card statements regularly.

Conclusion

Choose a credit card that aligns with your spending habits and offers relevant benefits. NRI credit cards simplify international spending, helping you enjoy seamless and secure transactions. By being aware of the fees involved, leveraging the card benefits, and maintaining good payment habits, one can optimize their international spending experience.