sunit123
TF Ace
forex markup is 1.99%
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Beat Forex Fees: Best Credit Cards that offset mark-up fee with Rewards
- Thread starter helloworld
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Again MCC based I think? Everything that comes under the MCC's listed (you can see them on the card page on the HDFC site) should work; anything other than those will obviously not give 5%.
Krypton6222
TF Buzz
I see it is minimum 5% here. Is the assumption here that 5L was spent on hotels/flights? In another thread, it is mentioned at 4%. Hence, net negative return for international transactions. I see differences in other cards as well. Probably because of different assumptions about the spent amount and category.
So, if I'm looking at offline transactions at abroad, how different would this list be? Also, if we consider the worst case scenarios for each card i.e. excluded category, would a non-rewarding but zero forex card be better?
also can check links bottom of main post with detailed calculations.
if ur talking about rent, wallet.. yes. Otherwise, not all cards exclude same categories for eaening rewards. Check appropriate card details or find them in my signature.
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if something need required amount of spends, already mentioned in that table. If not mentioned anything then min. txn value applies for that card. Nothing hidden, can check some cards posts at bottom of #1 thread for detailed, complicated, best and worst scenario reward rates.
Still find anything missing, do let us know.
Krypton6222
TF Buzz
Well, from your quoted thread, Atlas gets 5 EM/₹100 for travel spends. So, for 5L spent on travel, you get 25K EM. There is an additional 2.5K EM for reaching 3L spent milestone. I'm excluding joining bonus 2.5K EM as that is not available in silver tier from second year onward. Now, if we consider 1EM = ₹1, we get ₹27.5K. Deduct the annual fee of ₹5.9K and we're left with ₹19.1K. So, effective reward rate is 3.82%. Even if you consider the 2.5K EM as joining bonus, we get 4.32%. So, how did you get 5% as lowest value? I'm assuming that's what you meant by "5%+ (Flights/Hotels) on 5L spends".
I was going through other threads on this topic and saw that the numbers are different in different threads. I wanted to understand the assumptions/logic behind it so that I can decide whether it makes sense for me.
also can check links bottom of main post with detailed calculations.
if ur talking about rent, wallet.. yes. Otherwise, not all cards exclude same categories for eaening rewards. Check appropriate card details or find them in my signature.
Yes, as tourists, we'd mostly swipe on hotels, restaurants/eateries, shops, local transport, and tourist attractions. We don't know if any of them would have a pos machine with excluded mcc. So, there is always a degree of uncertainty when we use our cards offline abroad.
Which card would you suggest that would provide positive return in general spend despite forex no mater what?
5L spends.. (check again comparison thread which has two different tables and multiple scenarios)
= 25k EM
+ 5K EM (Joining + Bonus) 1st year
(2nd year, check hidden table in comparison post, click that button)
1EM = ₹2 to ₹1 (depends on redemption, check comparison thread for possible options)
if its accor its 1 EM = 2 AP (₹3.6)
// there are multiple partners which provides 1 EM = ₹2 (1:2)
| 5L Spends/Year | 30K EM to 15K EM - 5.9K Fee (JF) = 10.82% to 1.82% |
Net Return:
Ranges in percentage (e.g., 9.4% to -0.27%) explain best-to-worst-case returns (possible return on your spending after factoring in joining fees, and milestone bonuses for specific spending levels).
- Left Value (e.g., 9.4%)
- This is the maximum reward rate achievable through optimal usage, like earning on Travel Edge purchases and redeeming at a high value (e.g., 1 mile = 2 INR). This rate takes effort but can be reached with strategic spending.
- Right Value (e.g., -0.27%)
- This is the minimum achievable rate through regular spending and basic redemption (e.g., 1 mile = 1 INR). This is straightforward and possible for all cardholders.
- So, for any given spending amount, you can expect a reward rate between these two values. The lower end is your minimum return, while the upper end is achievable with careful planning.
So, out of 10% - (forex fee, GsT) = atleast 5%.
As mentioned comparison post is very detailed with multiple combinations, from lowest possible value to highest possible value and in my posts its always first year fee and benefits, renewals usually separate (if going to redeem in 2nd year, because many of them here didn't like that).
my answer still same, no changes.. its up to you to choose based on your convenience and intended redemption.
Other thread that you shared also mentioned same, but u only picked for your assumption "base rr and redemption as transfer partner = 4%", same thread mentioned accor = 18%, others atleast 10% in that table.
this applies for every card and always with test transaction before going big purchase. no card 100% perfect when its POS doing the changes.
still that 0 rewarding card can charge extra surcharge based on POS machine, or rewarding card gives net positive even after surcharge. Its upto you whichever way u want to think.
Krypton6222
TF Buzz
My point was it is not at least 5% even on travel spends. You literally took the highest return rate of 10% assuming 1 EM = ₹2 and calculated the lowest return rate from that. While it is true you can get 1 EM > ₹2 but it is also true that it can be 1 EM < ₹1 considering dynamic pricing of many partners.
I was focusing on only international spend return rate and that was calculated on base rate and forex+gst. I also assumed the base rate would be the lowest rate.
I don't know if surcharge is applicable on anything else other than fuel. I reckon that seldom happens but you're right that it is possible.
no 1 EM = 1Rs. when u book directly using travel edge. There are no changes in it, and its guaranteed minimum, hence mentioned
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Ok, think like this ... a card charges u 4.13% as forex fee including GST. And same card has the potential to give reward rate between 2% to 10%.. (there is potential and with careful planning its possible, especially when considered "international related spends be it travel or hotel")
Now, if u look for 2% then u'll loose -2.13%, and if u think about 10% then u'll gain +5.87%.
Based on this, if u pick for 1st one (obviously this card not suitable, move on and find another -- note: it doesn't mean this card not give +ve returns, it only means for your spending and intended redemption, this card not suitable).
Same way if u pick for 2nd one (obviously this card is suitable to you, use it and enjoy the benefits -- note: it doesn't mean this card good for everyone, it only means for your spending and intended redemption, this card suitable).
Hence, provided both lowest possible value and highest achievable value, along with redemption options, mileston information etc. to decide whether that card suitable to you or not (only u can tell whether its useful to you or not), IMO.
surcharge (or some other term u may see in various banks) applies for rent, education, fuel, wallet, utilities etc. mccs (varies from bank to bank) where they charge extra along with what you spend.
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anycase, ignore 'atlas' (it might be complicated product for you), check other options if u looking for direct redemption (without any transfer).
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Krypton6222
TF Buzz
It is difficult to have a meaningful conversation if you keep changing the usage to fit your point. You mentioned accor and other partners providing 1 EM >= ₹2. So, once you transfer the points, you no longer have the guarantee of 1 EM or 1 partner point = ₹1 for all partners.
Anyways, I'm out of this thread. I'll let other readers decide for themselves.
NikhilG
TF Premier
Any bank currently allowing debit card with free international atm withdrawal with 0 to 1 percent markup. I know we have indusind select as 0 mab with legend cc but I upgraded it to tiger so something similar like indusind select DC I need. Also I have still not activated my tiger. Do you think it makes sense over legend in this case if we don't have alternatives to indusind select.
sunit123
TF Ace
indusind exclusive account...It is 0 balance account with pinnacle CC....Indusind international ATM withdrawal charges is zeros and forex mark up is zero
* Any fees charged by foreign bank will be applicable..Example in thailand, all banks charge 220 baht for using their ATM but indusind did not charge anything extra.
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