As you prepare for an international trip, whether it is for business, studying abroad or a vacation, you may find it easier to use your debit card instead of cash to make payments and withdraw money at foreign ATMs. After all, it is linked to your bank account, and you don’t have to worry about currency exchange rates or taking bundles of cash, right?
Getting things done with your Indian debit card outside the country can be a real convenience, but it’s not without some important factors, like charges. So, if you are thinking whether it’s safe or wise to use your debit card internationally, or you’re considering to apply for debit card that will work in all parts of the world, here is everything you need to know.
Can You Use an Indian Debit Card Abroad?
In most situations, yes, but not all Indian cards are enabled by default to be used internationally. Major banks offer globally accepted debit cards enabled by either Visa or Mastercard. These cards are convenient to use at international ATMs, local shops, and on various online websites that accept foreign cards.
But in many cases, you are required to “activate” international usage. You can do this through your bank’s app, net banking or by visiting a branch. So if you are travelling, it’s one you’ll definitely want to tick off your list.
Charges You Should Know About
This is where it’s a little tricky. Swiping your Indian debit card abroad is easy but expensive if you are not careful. Here are the key charges to look out for:
1. Foreign Currency Markup Fee
Each time you use your debit card abroad, your bank charges a currency conversion fee—usually between 2.5% and 3.5% of the transaction amount. This is known as the foreign currency markup.
2. ATM Withdrawal Charges
Need to withdraw cash from an international ATM? Be prepared to pay both your bank’s withdrawal fee (which can range from ₹150 to ₹300 per transaction) and any additional fee charged by the foreign ATM provider.
3. Cross-Currency Charges or Processing Fees
Some banks also include a separate international transaction fee—usually around 1%—in addition to the markup. It may not seem like much, but it adds up quickly if you’re using your card frequently.
4. Dynamic Currency Conversion (DCC)
When you make a purchase abroad, some merchants may ask if you want to pay in INR instead of the local currency. This might seem helpful, but it often comes with poor exchange rates and extra charges. It’s usually better to pay in the local currency.
Debit Card or Credit Card for International Transactions: Which is Better?
A debit card directly reduces your bank balance, forcing you to spend only what you have and stay out of debt. However, credit cards generally offer:
- Better fraud protection
- Higher limits
- Travel benefits and insurance
- Possibly reduced foreign transaction fees or none at all (depends on the card)
If you travel a lot, you might carry both. But make sure you know which one is appropriate for what purpose.
Tips to Keep in Mind While Using Debit Cards Internationally
- Inform your bank that you are travelling, or they might block your card, thinking someone stole it.
- Do not rely on one card. Always have a backup: credit card, forex card, or cash.
- Use cards at trusted locations only. Foreign ATMs and smaller retailers may have higher risks of card skimming.
- Keep checking your balance. It’s easy to overspend when you’re paying in another currency.
- Set spending limits. You can usually do this through your app for extra control.
How to Apply for Debit Card?
If you’re travelling abroad soon and you have not sorted your finances yet, it’s a good idea to apply for debit card with better international terms. Look for features like:
- Low foreign transaction fees
- Global ATM access
- 24/7 customer support while abroad
When applying for debit card, always clarify whether the card is available for use overseas and if there are any extra charges. There are also various travel cards (prepaid forex cards) available that could work out as a cheaper and safer option.
Final Thoughts
Your debit card can totally work abroad. But only if you treat it right. So before you pack your bags, give a few minutes to understanding how your card does (or doesn’t) work abroad. Activate international use, know the fees, and keep your backups ready.