Best travel cards for Indian travellers in 2026

Indian travellers face a specific challenge: most bank-issued forex cards charge 3.5% on every international transaction. On a ₹2 lakh trip, that's ₹7,000 in avoidable fees. The alternatives — Niyo Global and Scapia — charge zero. Here's the full breakdown of every major option.

The Indian forex card problem

Traditional Indian bank forex cards — HDFC Multi-Currency, ICICI Sapphiro, SBI Foreign Travel Card — charge 3–3.5% as a 'foreign currency markup' on every international transaction. This is the standard in Indian banking and is accepted as normal by most travellers. It is not normal by global standards. UK, US, and EU travellers have had access to zero-markup cards for over a decade. Indian travellers now have options too.

Niyo Global: the best debit option

Niyo Global (issued by SBM Bank, RBI regulated) charges zero forex markup and uses the Visa exchange rate for all international transactions. It gives three free international ATM withdrawals per month, is free to maintain, and reloads from any Indian bank account. It's a debit card — you preload rupees and spend internationally. For most Indian travellers, this is the starting point. Setup takes 15–20 minutes online.

Scapia: the best credit option

Scapia Federal Bank Credit Card is a credit card with zero forex markup and no annual fee. Unlike Niyo Global, you don't preload — it works like a regular credit card, just without the 3.5% foreign transaction charge. It earns reward points on travel spends redeemable on Scapia's own travel platform. For travellers who prefer credit card flexibility and want to earn rewards, Scapia is the best India-issued option currently available.

TCS: the most important factor to understand

Tax Collected at Source (TCS) applies to international spending above ₹7 lakh per financial year under LRS (Liberalised Remittance Scheme). The rate is 20% on the amount above ₹7 lakh. This applies to both Niyo Global and Scapia. Critically: TCS is not a permanent cost — it's claimable as a tax credit when you file your ITR. It does, however, affect cash flow during the year. If you spend under ₹7 lakh internationally per year, TCS is irrelevant.

UNI Cards: best for instalment flexibility

Uni Cards (Pay 1/3rd) charges 1.5% forex markup — not zero, but significantly better than the 3.5% of bank cards. Its differentiation is the pay-in-thirds feature: every purchase is split into three equal monthly instalments at zero interest. For large international purchases where spreading payment is useful, Uni makes sense. For regular travel spending, Scapia (zero markup) is better.

HDFC/ICICI/SBI cards: when to use them

The only genuine use case for traditional Indian bank forex cards is rate locking: HDFC lets you load at today's rate before travel, giving certainty if you expect INR to weaken. If INR weakens significantly between loading and spending, you benefit. This is a form of currency speculation, not a fee strategy. For most travellers, live-rate zero-markup cards (Niyo, Scapia) are better than rate-locked 3.5% cards.

Key takeaways