{"id":7920,"date":"2025-05-21T12:25:40","date_gmt":"2025-05-21T12:25:40","guid":{"rendered":"https:\/\/www.extravelmoney.com\/blog\/?p=7920"},"modified":"2025-05-22T08:00:14","modified_gmt":"2025-05-22T08:00:14","slug":"send-money-abroad-credit-card-4-red-flags","status":"publish","type":"post","link":"https:\/\/www.extravelmoney.com\/blog\/send-money-abroad-credit-card-4-red-flags\/","title":{"rendered":"Can You Send Money Abroad Using a Credit Card? 4 Red Flags You Ignore"},"content":{"rendered":"\n
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Yes, you can send money abroad using your Indian credit card, but it comes loaded with hidden charges (1-5%) and only supports merchant payments, making it costlier and less convenient than wire transfers through platforms like ExTravelMoney. <\/p>\n\n\n\n

While international credit card payments disguise as a quick and easy solution, let\u2019s break it down and look at why using a credit card for international money transfers is a bad idea, and what better, cheaper alternatives you can use instead.<\/p>\n\n\n\n

Also Read: Travelling Outside India? Know The Charges of Using a Debit \/ Credit Card Abroad<\/a><\/strong><\/p>\n\n\n\n

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Why You Should Never Use Your Credit Card for International Payments<\/h2>\n\n\n\n

1. Not Allowed for Peer-to-Peer Transfers<\/h3>\n\n\n\n

You can\u2019t use an Indian credit card to send money directly to individuals abroad, like friends, family, or freelancers. Credit cards are allowed only for merchant payments such as university fees, hotel bookings, or tour packages, but only if the merchant accepts them.<\/p>\n\n\n\n

For peer-to-peer international transfers, you’d need to go through a remittance platform that supports credit card payments. These platforms accept your card in India, then send the money abroad via conventional ways, like wire transfer, wallet-to-wallet transfer, or local bank networking, etc. However, only a few platforms accept credit cards and often charge high fees.<\/p>\n\n\n\n

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2. High Foreign Transaction Fee<\/h3>\n\n\n\n

Foreign transaction fees for using Indian international debit cards can range from 1% to 5%<\/strong>. <\/p>\n\n\n\n

Foreign transaction fee comprises the service fee and the forex markup. It is the profit applied by the card issuer (bank or financial institution) and the credit card company (Visa, Mastercard, etc) on top of the actual exchange rate. <\/p>\n\n\n\n

For instance, a \u20b91,00,000 international transaction could cost anywhere between \u20b91,000 \u2013 \u20b95,000 extra just in markup fees. <\/p>\n\n\n\n

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3. GST on Foreign Transaction Fees<\/h3>\n\n\n\n

On top of the markup fee, 18% GST<\/strong> is levied on the markup amount. Since international credit card transactions do not fall under the RBI\u2019s Liberalised Remittance Scheme (LRS), GST applies on the foreign transaction fee and not as minimal percentages on the transaction amount. This makes the GST charges excessively high.<\/p>\n\n\n\n

So let\u2019s consider the previous transaction of \u20b91,00,000. If the foreign transaction fee charged is \u20b95,000, the GST payable shall be \u20b9900!<\/p>\n\n\n\n

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4. Credit Card Limit<\/h3>\n\n\n\n

There is a maximum amount your issuer allows you to spend across all transactions, including domestic and international transactions. Large overseas payments may quickly eat into your available credit limit.<\/p>\n\n\n\n

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A Smarter, Cheaper & Safer Way to Send Money Abroad – ExTravelMoney<\/h2>\n\n\n\n

By now, it\u2019s clear that using a credit card for international money transfers is expensive, limited, and often not even allowed for the transfers you actually need to make.<\/p>\n\n\n\n

But there\u2019s a better way, and it is wire transfers through ExTravelMoney.<\/p>\n\n\n\n

So why choose ExTravelMoney?<\/strong><\/p>\n\n\n\n