Navigating International Payments with Your Credit Card 

Travelling abroad or shopping from international websites has become increasingly common for many Indians. Whether you’re planning a vacation, studying overseas, or making a purchase from a foreign e-commerce site, using your credit card for international payments is often the most convenient option. However, making international transactions with your credit card involves more than just swiping or entering your card details. In this international credit card payment guide, we’ll walk you through the process of making international payments with your credit card, helping you understand the fees, exchange rates, best practices involved and the best credit cards for international payments.

Understanding International Credit Card Processing 

When you make international payments with a credit card, the payment process is similar to domestic transactions but with a few additional steps. Major credit card networks like Visa and Mastercard operate globally, allowing customers to use their cards with merchants who accept these brands worldwide.

However, international credit card processing involves currency conversion and additional fees. Here’s a breakdown of the key components:

Cross-Border Fees 

Cross-border fees, also known as international transaction fees, are charged by the card network (Visa, Mastercard, etc.) when you make a purchase in a foreign currency. These fees vary depending on the network and typically range from 1% to 3% of the transaction amount.

Foreign Transaction Fees 

In addition to cross-border fees, your card issuer (the bank or financial institution that provided your credit card) may charge a foreign transaction fee. This fee is usually a percentage of the transaction amount and can range from 1% to 3%. Some credit cards, especially those designed for frequent travellers, may waive these fees.

The Payment Process for International Transactions 

When you make an international payment with your credit card, the process involves the following steps:

1. Checkout: You initiate the payment by providing your credit card details to the merchant, either in person or online.
2. Currency Conversion: The card network (Visa, Mastercard, etc.) automatically converts the transaction amount from the foreign currency to your card’s billing currency using the current exchange rate.
3. Fees Application: The cross-border fee and foreign transaction fee (if applicable) are added to the converted amount.
4. Authorisation: The card issuer verifies the transaction and checks for sufficient credit limit and potential fraud.
5. Posting: Once authorised, the transaction is posted to your credit card account, and the final amount (including fees) is reflected in your statement.

Choosing the Best Credit Cards for International Payments 

When selecting the best credit cards for international payments, consider the following factors:

• No Foreign Transaction Fees: Opt for a card that waives foreign transaction fees to save on costs. Some travel credit cards offer this benefit.
• Favourable Exchange Rates: Look for cards that offer competitive exchange rates to get the most value for your money.
• Global Acceptance: Ensure that your credit card is widely accepted in the countries you plan to visit or the international websites you intend to use.
• Travel Benefits: Some credit cards offer additional perks like travel insurance, airport lounge access, and reward points on international transactions.

Popular Payment Gateways for International Transactions 

When making international payments with a credit card, you may encounter various payment gateways that facilitate secure credit card payments. Some popular options include:

• Stripe: Supports multiple currencies and charges an additional 1.5% fee for international transactions.
• PayPal: Offers buyer and seller protection, with a fee of 4.4% + a fixed fee based on the currency.
• Wise: Provides local bank account details in multiple countries, reducing fees for businesses receiving international payments.

Tips for Making Secure International Payments 

To ensure a smooth and secure experience when making international payments with your credit card, follow these tips:

1. Notify Your Card Issuer: Inform your bank or credit card company about your travel plans or intention to make international transactions to avoid potential fraud alerts and card blockage.
2. Use Secure Websites: When shopping online, ensure that the website has a valid SSL certificate (look for “https” in the URL) and displays trust seals or security badges.
3. Avoid Public Wi-Fi: Refrain from making credit card transactions on public Wi-Fi networks, as they are more susceptible to security breaches.
4. Keep an Eye on Exchange Rates: Monitor currency exchange rates to make informed decisions about when to make your international payments.
5. Check Your Statements Regularly: Review your credit card statements frequently to identify any unauthorised transactions or discrepancies.

Airtel Finance: Your Partner for International Payments 

When it comes to making international payments with your credit card, Airtel Finance offers a range of solutions to meet your needs. With the Airtel Finance Axis Bank Credit Card, you can enjoy a seamless international payment experience along with attractive rewards and benefits.

Key features of the Airtel Finance Axis Bank Credit Card include:

• Worldwide Acceptance: The card is accepted globally wherever Visa cards are accepted.
• Rewards on International Transactions: Earn 2 Reward Points for every ₹100 spent on international transactions.
• Complimentary Airport Lounge Access: Enjoy complimentary lounge access at selected domestic and international airports.
• Easy Application Process: Apply for the card through the Airtel Thanks App with minimal documentation.

To make the most of your international payments with Airtel Finance, ensure that you have a good credit score. A higher credit score not only increases your chances of credit card approval but also helps you secure better credit limits and interest rates.

Summing Up 

Making international payments with your credit card is a convenient way to manage your expenses while travelling abroad or shopping from international websites. By understanding the fees, exchange rates, and best practices involved in this international credit card payment guide, you can make informed decisions and enjoy a seamless payment experience.

When choosing a credit card for international transactions, consider factors like foreign transaction fees, rewards, and global acceptance. The Airtel Finance Airtel Axis Bank Credit Card offers a compelling combination of benefits and rewards, making it an excellent choice for your international payment needs.

Remember to take necessary precautions, such as notifying your card issuer about your travel plans, using secure websites, and monitoring your statements regularly. By following these tips and partnering with a reliable financial institution like Airtel Finance, you can confidently navigate the world of international payments with your credit card.

FAQs 

1. What is the difference between cross-border fees and foreign transaction fees?

The card network charges cross-border fees for processing transactions in a foreign currency, while the card issuer charges foreign transaction fees.

1. Can I use my credit card for international transactions without informing my bank?

It’s advisable to inform your bank about your international travel plans or intention to make foreign transactions to avoid potential fraud alerts and card blockage.

1. Are there any credit cards that don’t charge foreign transaction fees?

Yes, some credit cards, especially those designed for frequent travellers, waive foreign transaction fees. Look for cards that specifically mention “no foreign transaction fees” as a feature.

1. How can I get the best exchange rate when making international payments with my credit card?

To get the best exchange rate, avoid converting currencies at the point of sale (dynamic currency conversion) and let your card issuer handle the conversion. Additionally, monitor currency exchange rates to make payments when rates are favorable.

1. What should I do if I notice an unauthorised international transaction on my credit card statement?

If you spot an unauthorised international transaction, contact your card issuer immediately to report the issue and initiate the dispute resolution process. Most banks have a dedicated helpline for reporting fraudulent transactions.