Zero Forex Travel Cards: No Markup Doesn’t Mean No Cost. Here’s What To Check

“Ze o
fo ex& dquo;
sou ds
like
the
pe fect
t avel
compa io .
No
fo eig
excha ge
ma kup,
o
ext a
cha ge
eve y
time
you
tap
you
ca d
ab oad
a d,
supposedly,
a
cheape
way
to
pay
fo
eve ythi g
f om
hotel
bills
to
shoppi g.

But
the e
is
a
catch:
ze o
fo ex
ma kup
does
ot
ecessa ily
mea
ze o
cost.

Fo
I dia
t avelle s,
these
ca ds
ca
educe
the
cost
of
ove seas
spe di g,
pa ticula ly
fo
those
who
t avel
f eque tly.
But
the
headli e
be efit
is
o ly
o e
pa t
of
the
calculatio .
A ual
fees,
excha ge- ate
mecha isms,
dy amic
cu e cy
co ve sio
(DCC),
ATM
cha ges
a d
ewa d
st uctu es
ca
all
affect
what
a
ca d
actually
costs.

Ze o
Fo ex
Does
Save
You
O e
Impo ta t
Cost

Whe
a
I dia
ca dholde
makes
a
payme t
i
a
fo eig
cu e cy,
the
ca d
issue
ca
levy
a
fo eig
cu e cy
o
fo ex
ma kup.
This
cha ge
typically
a ges
betwee
2
pe
ce t
a d
3.5
pe
ce t
o
ma y
ca ds.& bsp;

A
ze o-fo ex
ca d
waives
this
explicit
ma kup
o
eligible
i te atio al
t a sactio s.

That
ca
make
a
oticeable
diffe e ce
fo
someo e
spe di g
a
substa tial
amou t
ove seas.
A
t avelle
putti g
seve al
lakh
upees
of
holiday
expe ses
o
a
ca d
could
othe wise
accumulate
a
sizeable
ma kup
ove
multiple
t a sactio s.

Ze o-fo ex
p oducts
ca
be
pa ticula ly
useful
fo
f eque t
ove seas
t avelle s,
although
the
ove all
value
depe ds
o
the
ca d’s
othe
cha ges
a d
be efits.

But
the
wo d
“ze o& dquo;
applies
to
the
fo ex
ma kup,
ot
ecessa ily
eve y
cost
associated
with
usi g
the
ca d
ab oad.

The
Excha ge
Rate
Still
Matte s

This
is
o e
of
the
less
obvious
poi ts
t avelle s
eed
to
u de sta d.

Removi g
the
visible
fo ex
ma kup
does
ot
ecessa ily
mea
the
t a sactio
is
co ve ted
at
exactly
the
i te ba k
ate
a
t avelle
sees
o
a
sea ch
e gi e.
Ca d
etwo ks
such
as
Visa
a d
Maste ca d
have
thei
ow
co ve sio
ates,
while
the
fi al
amou t
cha ged
ca
depe d
o
the
t a sactio
a d
settleme t
p ocess.

T avelle s
should
look
at
the
ove all
cost
of
i te atio al
t a sactio s
athe
tha
focusi g
o ly
o
the
headli e
fo ex
ma kup.

I
othe
wo ds,
ze o
ma kup
emoves
o e
laye
of
cost,
but
it
does
ot
make
fo eig
excha ge
itself
f ee.

Also
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Gold
Silve
Rate
Today
(Aug
14):
Metals
Fall,
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I
Delhi,
Mumbai,
Che ai,
Mo e

The
Bigge
T ap:
Dy amic
Cu e cy
Co ve sio

Fo
ma y
t avelle s,
the
mo e
impo ta t
issue
may
be
what
happe s
at
the
payme t
te mi al.

You
a e
i
Pa is,
Si gapo e
o
Dubai,
eady
to
pay,
a d
the
machi e
asks
whethe
you
wa t
to
pay
i
the
local
cu e cy
o
I dia
upees.

Choosi g
upees
may
look
co ve ie t
because
you
immediately
see
the
amou t
i
familia
cu e cy.
But
that
is
dy amic
cu e cy
co ve sio ,
o
DCC.

T avelle s
should
pay
i
the
local
cu e cy
athe
tha
accepti g
DCC.
Its
epo ti g
otes
that
DCC
ca
i volve
a
excha ge
ate
set
by
the
me cha t
o
its
payme t
p ovide ,
which
may
be
less
favou able.
T avelle s
should
ote
that
selecti g
INR
at
a
ove seas
te mi al
ca
esult
i
additio al
ma kup
costs.

So
eve
if
you
ca d
has
ze o
fo ex
ma kup,
accepti g
a
u favou able
DCC
co ve sio
ca
u de mi e
the
savi g
you
we e
t yi g
to
make.

The
simple
ule:
whe
ab oad,
choose
the
local
cu e cy
whe
the
te mi al
gives
you
the
choice.

ATM
Withd awals
A e
A othe
Cost
To
Watch

A
ca d
that
wo ks
cheaply
fo
pu chases
may
ot
be
equally
cheap
whe
you
eed
cash.

Ove seas
ATM
withd awals
ca
still
att act
cha ges
eve
o
ze o-fo ex
p oducts.
Its
a alysis
cited
fees
of
2.5
pe
ce t
fo
o e
ze o-fo ex
ca d
a d
Rs
425
plus
GST
beyo d
specified
f ee
withd awal
limits
fo
ce tai
Niyo
ca ds.& bsp;

C edit
ca d
cash
withd awals
ca
be
eve
mo e
expe sive
because
cash
adva ces
may
att act
withd awal
fees
a d
i te est
cha ges.
T avelle s
should
pay
atte tio
to
ove seas
ATM
cha ges
a d
the
immediate
i te est
implicatio s
of
withd awi g
cash
th ough
a
c edit
ca d.

This
mea s
a
t avelle
should
ot
assume
that
“ze o
fo ex& dquo;
automatically
cove s
cash
withd awals.

A
Ze o-Fo ex
Ca d
May
Still
Have
A
A ual
Fee

The
comes
the
less
glamo ous
pa t
of
the
ca d
b ochu e:
the
a ual
o
joi i g
fee.

Some
ze o-fo ex
ca ds
may
ca y
a ual
cha ges
o
spe di g
co ditio s,
while
ewa ds
o
i te atio al
spe di g
ca
also
diffe
f om
those
offe ed
by
co ve tio al
ca ds.

This
matte s
pa ticula ly
fo
occasio al
t avelle s.

Suppose
you
take
o e
ove seas
holiday
a
yea
a d
save
a
few
thousa d
upees
by
avoidi g
fo ex
ma kup.
If
the
ca d’s
a ual
fee
is
high,
the
savi g
may
ot
be
e ough
to
make
the
p oduct
wo thwhile
u less
you
also
use
its
othe
be efits.

T avelle s
should
compa e
the
ove all
package,
i cludi g
ewa ds,
t avel
be efits
a d
fo ex
cha ges,
athe
tha
selecti g
a
ca d
solely
because
of
its
headli e
ma kup.& bsp;

Ze o
Fo ex
Is
Not
Always
The
Best
Deal

The e
is
a othe
i te esti g
w i kle:
a
ca d
with
a
fo ex
fee
ca
sometimes
offe
bette
ove all
value.

Some
p emium
ca ds
impose
a
ma kup
but
offe
substa tially
highe
ewa ds
o
ove seas
spe di g.& bsp;

That
makes
the
ight
ca d
less
about
fi di g
the
biggest
“ze o& dquo;
a d
mo e
about
calculati g
you
total
cost
of
t avel
spe di g.

Also
Read
:& bsp;Fi a cial
F eedom
Mea s
Diffe e t
Thi gs
To
Ge
Z,
Mille ials,
Ge
X,
A d
Boome s

What
Should
T avelle s
Check
Befo e
Applyi g?

Befo e
choosi g
a
ze o-fo ex
t avel
ca d,
t avelle s
should
look
beyo d
the
ma keti g
headli e
a d
check:

Fo ex
ma kup:
Is
it
ge ui ely
ze o
fo
all
eligible
i te atio al
t a sactio s?Excha ge
ate:
How
is
the
fo eig
cu e cy
co ve ted
i to
upees?DCC:
What
happe s
if
you
choose
INR
i stead
of
the
local
cu e cy?ATM
withd awals:
A e
ove seas
cash
withd awals
f ee,
capped
o
cha geable?A ual
fee:
Is
the e
a
joi i g
o
e ewal
fee,
a d
is
the e
a
spe di g
co ditio
fo
a
waive ?Rewa ds:
A e
i te atio al
t a sactio s
eligible
fo
the
adve tised
ewa d
ate?Othe
be efits:
Do
lou ge
access,
t avel
i su a ce
o
othe
pe ks
justify
the
ca d’s
ove all
cost?