Key takeaways

  • Most "hidden" charges are 1–3.5% of the transaction, plus 18% GST on the fee.
  • HDFC Bank charges 1% on rent, on wallet loads above ₹10,000 a month and on utilities above ₹50,000 a month.
  • Always pay abroad in the local currency. Choosing rupees (DCC) adds a markup.
  • Your card's MITC document lists every charge. Read the "fees and charges" table once a year.

A card's headline benefits are on the product page. The charges are in a PDF called the Most Important Terms and Conditions (MITC). Here's every charge that commonly surprises Indian cardholders, what it costs in 2026, and how to avoid it.

1. Forex markup

When you pay in a foreign currency, abroad or on an international website, most cards add a markup of 1.5–3.5% to the exchange rate, plus 18% GST on the markup. A 3.5% markup really costs about 4.13%. On a ₹1 lakh trip that's ₹4,130.

How to avoid it: use a zero-forex card. Scapia Federal Bank charges no markup, and since 9 September 2026 so does every IDFC FIRST credit card, such as IDFC FIRST Millennia. Compare costs with our forex calculator.

2. Dynamic currency conversion (DCC)

Abroad, a shop or ATM may offer to charge you in rupees. That's DCC. The merchant sets the exchange rate, typically 5–8% worse than the card network's rate, and many banks still charge their own fee on top. Axis Bank raised its DCC markup on several cards in August 2026, and HDFC charges 1.75% on DCC for some cards. Always choose the local currency.

3. Fuel surcharge

Petrol pumps charge a 1% surcharge on card payments. Many cards waive it, but only within a band and up to a monthly cap. HDFC's Millennia FAQ, for example, waives it on fuel transactions from ₹400 to ₹5,000, up to ₹250 per statement cycle. Fill-ups outside the band, or above the cap, pay the full 1% plus GST. Fuel spends also usually earn no rewards.

4. Rent payment fees

Paying rent through apps like CRED or NoBroker typically costs a platform fee of about 1–2%, plus GST. Many banks now add their own fee on top. HDFC Bank charges 1% on rent transactions, capped at ₹4,999 per transaction, from July 2025. Most cards also give no rewards on rent. Check whether it's worth it with our rent payment calculator.

5. Wallet load fees

Loading wallets like Paytm, Amazon Pay or MobiKwik with a credit card now often costs extra:

  • HDFC Bank: 1% on wallet loads above ₹10,000 in a calendar month (from July 2025).
  • ICICI Bank: 1% on wallet loads of ₹5,000 or more (from January 2026).

6. Utility and bill payment fees

Large utility spending can now attract a fee. HDFC Bank charges 1% if your utility spending in a month exceeds ₹50,000, and ICICI Bank charges 1% above a similar threshold on some cards, including Amazon Pay ICICI.

7. Online gaming fees

HDFC charges 1% on skill-based gaming spends above ₹10,000 a month and gives no rewards on them. ICICI charges 2% on gaming transactions (from January 2026).

8. Cash withdrawal (cash advance)

Withdrawing cash on a credit card costs a fee of about 2.5% (minimum ₹300–₹500 depending on the bank), plus interest from the day you withdraw, with no interest-free period. See the full maths in our cash withdrawal guide.

9. Late payment fee and interest

Miss the minimum amount due and you'll pay a slab-based late fee of up to about ₹1,300, plus interest of roughly 3.5–3.75% a month on the unpaid balance (Axis Bank raised its finance charge to 3.75% a month in December 2025). You also lose the interest-free period on new purchases until the balance is cleared. Full bank-by-bank tables are in our late payment charges comparison.

10. Redemption and conversion fees

Some banks charge to redeem points. Axis Bank introduced a ₹99 EDGE Rewards redemption fee and a ₹199 miles conversion fee in December 2025. Small redemptions lose a big share to these fees, so redeem in larger batches.

11. EMI processing fees and GST

Converting purchases to EMI usually costs a processing fee (often ₹99–₹299 or about 1%), plus 18% GST on both the fee and the interest. That applies even to "no-cost" EMIs. Check the real cost with our EMI calculator.

12. Other charges to know

  • Over-limit fees: charged by some banks if you exceed your credit limit. You must opt in to over-limit transactions under RBI rules.
  • Card replacement fees: for lost or damaged cards, typically a few hundred rupees.
  • Cheque or cash payment fees: some banks charge for paying your bill in cash at a branch.
  • Statement or document requests: older statements sometimes carry a fee.

How to find every charge on your card

  1. Search for "[your card name] MITC" on your bank's website.
  2. Open the "Schedule of charges" or "Fees and charges" table.
  3. Save a copy. Banks must notify you before changing charges. Under RBI rules, you can close the card without extra charges if you object to a change.

We log fee changes with sources on our credit card changes page.

FAQs

What is the most common hidden credit card charge?

Forex markup. Most cards add 1.5–3.5% plus GST on every foreign-currency transaction, which many people don't notice until the statement arrives.

Is GST charged on credit card fees?

Yes. 18% GST applies to almost every fee and to interest, including annual fees, late fees, forex markup and EMI interest.

Can a bank add new charges without telling me?

No. Banks must notify cardholders in advance of changes to charges, and you can close the card if you don't agree.

Do rent payments earn credit card rewards?

Most cards now give no rewards on rent, and many banks charge a 1% fee on rent transactions on top of the payment app's fee.

Sources

About the author

Deepak

Founder & Editor, CardPicker

Deepak founded CardPicker and writes and fact-checks its credit card guides, comparisons and news.

✓ Fact-checked 26 September 2026Prices, dates and card terms in this article were checked against issuer websites, official pages and news reports listed under Sources. Card figures come from our database, which is re-verified regularly. Offers change often, so confirm on the issuer's site before you buy or apply. Spotted an error? Tell us.