Credit card marketing focuses on rewards. Credit card reality is full of fees most cardholders never notice until they see them on a statement. Here are the main ones.
Foreign currency markup
When you swipe your card abroad or on an international website, the issuer applies a markup — typically 3.5% on top of the Visa/Mastercard conversion rate. That's a real cost on every international transaction. Premium cards (Infinia, Magnus, Amex Platinum) offer 0–2% markup and are genuinely worth it for frequent international travelers. Using a forex card or Niyo for international spends is another path.
Cash advance fee
Never withdraw cash from a credit card. You pay a cash advance fee (2.5–3.5%) plus interest from day one at 3–4% per month. A ₹20,000 cash withdrawal can cost ₹700+ upfront and ₹600–800 per month in interest until you pay it back. If you're using a credit card for cash, something has gone badly wrong financially.
Late payment fee
Missing your minimum due triggers a flat fee of ₹500–1,300 depending on the outstanding amount, plus interest on the full billed amount at 3–4% per month from the transaction date. On a ₹50,000 bill, a single missed payment can cost you ₹2,500+. Always set auto-debit for at least the minimum due.
Over-limit fee
Some cards allow you to exceed your limit, then charge 2.5% of the over-limit amount as a fee. Others decline the transaction. Know what your card does.
Fuel surcharge
Fuel transactions carry a 1% surcharge from the payment network. Most fuel credit cards reimburse this up to a monthly cap. Make sure your fuel spend is below that cap — otherwise the surcharge eats your rewards.
The GST
Every fee above attracts 18% GST. A ₹500 late fee becomes ₹590. A ₹10,000 annual fee becomes ₹11,800. Always factor GST into your cost calculations when evaluating whether a fee-based card is worth it.