Axis Atlas - A great forex card Alternative?

[the_collector]

Hello Everyone!

It's been half a year since I've been using my axis atlas and I'm not sure why nobody is speaking about this!

Axis atlas has a dynamic currency conversion fee of just 1.5% + GST. Effective rate 1.77%.

This is on par with many high end credit cards that offer a lower forex fee of 3.5% + gst.

Now where is the benefit you may ask?

At the time of making a transaction in a foreign country, Instead of paying in the local currency of the country, select INR ( this would be considered as a DCC transaction instead of a forex one) and this would attract a fee of only 1.77%.

Reward Rate:

- On offline merchants abroad using POS and selecting inr / On online merchants that are international based and auto convert to inr ( agoda, klook, getyourguide, viator etc..):

DCC Fee - 1.77%
Reward rate assuming it's not hotel or airline mcc - 4%

Effective reward rate - 2.23%

- on offline/ online merchants with hotel/ airline MCC

DCC fee - 1.77%
Reward rate on hotel/ airline mcc - 10%

Effective reward rate - 8.23%


Note:

1. Higher effective reward rate on accor conversion
2. Always make sure in the message when you swipe or pay online that you are charged in "INR" , if the message has any other currency mentioned you will be charged with the full 3.5% + gst ( 4.13%) , effectively making it negative.

Would love to know your thoughts 👇🏻

 

[ENIAC]

Only you have to be vigilant and select INR when paying on POS

 

[the_collector]

Only you have to be vigilant and select INR when paying on POS

True, that's probably the only thing you'd need to be aware of.

I used to use idfc wealth as my backup forex card, but the effective reward rate is negligible. I'm replacing this card with the atlas as my backup. I'll reach my milestones faster too

 

[kaykayporty]

Historically, we chose the local currency as converting to INR would involve

Local -> INR -> Local.

Wouldn't we still end up paying forex charges? If what you're saying is true, why hasn't this been highlighted more?

 

[Guddi]

Historically, we chose the local currency as converting to INR would involve

Local -> INR -> Local.

Wouldn't we still end up paying forex charges? If what you're saying is true, why hasn't this been highlighted more?

Don't htin

Hello Everyone!

It's been half a year since I've been using my axis atlas and I'm not sure why nobody is speaking about this!

Axis atlas has a dynamic currency conversion fee of just 1.5% + GST. Effective rate 1.77%.

This is on par with many high end credit cards that offer a lower forex fee of 3.5% + gst.

Now where is the benefit you may ask?

At the time of making a transaction in a foreign country, Instead of paying in the local currency of the country, select INR ( this would be considered as a DCC transaction instead of a forex one) and this would attract a fee of only 1.77%.

Reward Rate:

- On offline merchants abroad using POS and selecting inr / On online merchants that are international based and auto convert to inr ( agoda, klook, getyourguide, viator etc..):

DCC Fee - 1.77%
Reward rate assuming it's not hotel or airline mcc - 4%

Effective reward rate - 2.23%

- on offline/ online merchants with hotel/ airline MCC

DCC fee - 1.77%
Reward rate on hotel/ airline mcc - 10%

Effective reward rate - 8.23%


Note:

1. Higher effective reward rate on accor conversion
2. Always make sure in the message when you swipe or pay online that you are charged in "INR" , if the message has any other currency mentioned you will be charged with the full 3.5% + gst ( 4.13%) , effectively making it negative.

Would love to know your thoughts 👇🏻

Have you checked the conversion rate though?

 

[taskmaster]

Only you have to be vigilant and select INR when paying on POS

Where do we get option to select to pay in INR on the POS?

 

[an.mah]

The challenge with this approach is that the POS systems Forex conversion rate is not great. I have compared this in Dubai and Singapore and the POS exchange rates were over 3% worse than the INR rate applied with local currency on the same credit card.


This ends up saving 1.75% but costs 3%. The POS companies have started giving this option to earn this extra revenue.

 

[the_collector]

Don't htin

Have you checked the conversion rate though?

I assumed visa rates only apply. Thats not the case?

 

[Guddi]

I assumed visa rates only apply. Thats not the case?

No, you will have to check. POS usually charge higher conversion rate

 

[sourpai]

I am surprised no one responded to this!!

Whenever you select INR currency in foreign location, it will add up 4-5% markup on it and convert to INR value on PoS.

So your net expense on Atlas will be 1.77% + 4% = ~5.8% when selecting INR currency ... It is totally loss making proposition.

Always select local currency on PoS when making any payments internationally. If you have any doubts, please search whether to select local currency or INR while making forex payments on google and you will get lot of info about this

 

[thanix]

I assumed visa rates only apply. Thats not the case?

No, the rate is not tied to live rates but pre fixed rate of the day. It generally is 2% higher. This is typical interbank rate spread on any day. On top of it, DCC is a loot by banks.

 

[the_collector]

I am surprised no one responded to this!!

Whenever you select INR currency in foreign location, it will add up 4-5% markup on it and convert to INR value on PoS.

So your net expense on Atlas will be 1.77% + 4% = ~5.8% when selecting INR currency ... It is totally loss making proposition.

Always select local currency on PoS when making any payments internationally. If you have any doubts, please search whether to select local currency or INR while making forex payments on google and you will get lot of info about this

But this isn't the case when you pay in inr on a website online and this has been verified by me.

For instance, I made a payment on Airbnb or booking.com for an international stay( don't remember which one) , but I was charged in inr. I only got charged the 1.77%

I could be wrong about the pos machines as they may have their own rates attached and will have to verify this the next time I travel

 

[thanix]

But this isn't the case when you pay in inr on a website online and this has been verified by me.

For instance, I made a payment on Airbnb or booking.com for an international stay( don't remember which one) , but I was charged in inr. I only got charged the 1.77%

I could be wrong about the pos machines as they may have their own rates attached and will have to verify this the next time I travel

Ah ok. I was not aware of online transactions. My experience is on the POS machines. I have seen the rates higher in it. In our corporate card also, we have been told to book in local currency (no mark up fee for our company) due to this higher rates.

 

[sourpai]

But this isn't the case when you pay in inr on a website online and this has been verified by me.

For instance, I made a payment on Airbnb or booking.com for an international stay( don't remember which one) , but I was charged in inr. I only got charged the 1.77%

I could be wrong about the pos machines as they may have their own rates attached and will have to verify this the next time I travel

You should check the foreign currency rate displayed, go to google and find the equivalent INR rate. Now change currency to INR and then compare that with google converted earlier rate. Then you will find a good amount of difference.

Some websites may have equal rates or close to equal rates, but no such guaranty. Better check every time, else pay directly in foreign currency, that is always better ---> Thats the whole reason why low forex or zero forex cards have high demand in general for such transactions