India has a rich ancient heritage and flavourful foods, and boasts some of the world’s most stunning landscapes. Brits are increasingly travelling to India to explore the diversity the country offers. So if you plan on seeing the Taj Mahal up close, you’ll want to understand how to use your credit card in India before you depart, to ensure a hitch-free trip.
The country’s major metropolitan areas, such as Delhi and Mumbai, are increasingly likely to accept credit cards as a standard form of payment. However, it is recommended that you also carry cash, since many rural areas of India still operate on a cash economy. India’s main currency is the rupee (INR).
Cash machines in India
ATMs and credit card machines are largely absent in rural India, so it’s important to always keep some cash with you. While there may be some ATMs dotted around the larger cities, it is worth keeping in mind that if you decide to take cash out using an ATM machine then your withdrawal amount may be subject to a specific limit. If you use your credit card to get a cash advance, you’re likely to start paying interest immediately.
Cash in India
You’ll find a number of establishments in smaller towns and even popular tourist destinations that don’t accept credit or debit cards. This also applies to most restaurants (or dhabas) commonly found on India’s highways. Plus, cash is needed to pay for food at markets and on board train journeys. As you may not always be in an area where ATMs are accessible, it is advisable to take enough money out in case you plan to travel around further.
Chip and PIN
While chip-enabled credit cards are increasing in India, magstripes are still the most commonly used. However it is recommended to use your chip card with a PIN when possible, since this is safer to use than the magstripe counterparts.
The Reserve Bank of India is phasing out cards with magnetic stripes by December 31, 2018. From January 2016, all new banking customers in India are receiving chip-enabled cards.
Is it safe to use my card in India?
By exercising some caution when using your credit card in India, you’ll have a relatively trouble-free experience.
- Keep your PIN safe. Use one hand to enter the PIN and the other to shield it from prying eyes and hidden cameras.
- Select ATMs with care. Try and stick to ATMs in banks and avoid using ones in the street.
- Watch out for “skimmers”. When installed in an ATM, a card skimmer works by stealing information from credit and debit cards. If you feel the card slot is not as smooth as it should be or if there’s a problem with the keypad, cancel your transaction and look for another ATM.
Keeping your credit card (physically) safe
Remain alert to street crime, especially especially where two or more people work in distracting victims before decamping with their valuables. Pickpocketing and handbags being stolen are not uncommon, so it’s important to be alert, particularly in crowded places.
Make sure you always know where your belongings are, and keep an eye on your credit care in situations where it could be skimmed, such as at restaurants.
Potential credit card fees
Some shops discourage credit and debit card payments because they have to pay transaction fees to their banks for the convenience. Others tend to charge their customers 1% or 2% extra to cover for the fee. However, this practice is considered illegal by the Reserve Bank of India.
Credit card fees can leave a noticeable dent in your pocket when you’re travelling overseas, so know what you’re up against well in advance and choose a card with no or low fees.
Foreign transaction fees
British credit card issuers typically charge a fee equivalent to 1% to 3% of your transaction, so carefully review your card’s smallprint to avoid statement surprises. Some cards designed for travel come with no foreign transaction fees, so this could be a good time to switch.
Learn more about cards designed for overseas spending
Currency conversion fees
If a retailer offers to bill your credit card in sterling, dynamic currency conversion comes into play. While this might sound like a good deal, you’ll actually end up getting a worse exchange rate, and you might also end up paying currency conversion fees. Whenever you’re presented with an option, choose to pay in local currency.
Cash advance fees
Using your credit card to withdraw money from an ATM may not make sense unless it’s a bona fide emergency. Each time you withdraw funds from an ATM, you’re likely to pay a cash advance fee. Your APR for cash advances is typically higher than your purchase APR, and you’ll typically get no grace period on interest — instead, you start paying interest immediately. Again, some cards designed for overseas spending will waive this fee.
The table below serves as an example of how much extra you may pay to use your credit card for in India.
Additionally you can get an idea of costs by using these online currency conversion tools from Mastercard and Visa.
What is a cash advance fee?
A cash advance fee is calculated (and charged) when you withdraw cash from your credit card. It’s usually the greater of a flat fee or a percentage of the transaction. For example, “2.5% of the transaction, minimum £3.00”.
How to prepare before travelling to India
- Go with Visa or Mastercard. Visa and Mastercard are the most commonly accepted cards in India, and it is not advisable to bring an American Express card as they are rarely accepted.
- Think no foreign transaction fees. When there are cards that come with no foreign transaction fees, using ones that charge 2% or 3% of each overseas transaction does not make sense. Some of these cards don’t charge an annual fee, either.
- Keep your bank posted. Banks are likely to block credit cards if they detect suspicious activity such as unexpected overseas transactions. To make sure this does not happen to your card, let your bank know about your travel plans before you leave the UK.
- Keep the emergency number handy. Know which numbers you’ll need to call if you end up losing your card or if you need an emergency replacement.
- Know where you’ll get cash from. Try to avoid exchanging money at airports and popular tourist destinations because of typically poor exchange rates. Plan on getting cash soon after your arrival, since it’s likely you’ll need it early on. ATMs in India typically come with a maximum withdrawal limit of 15,000 rupees.
Next steps
Ask yourself these simple questions before you leave so your spending in India does not hit any roadblocks.
- Which cards will I take? Visa and Mastercard are the favourites. If you’re planning a trip, check out cards which give you complimentary airport lounge access. If you’re planning well in advance, consider earning air miles for your trip with a frequent flyer credit card.
- Have I let my bank know? If you don’t inform your bank about your travel plans, you may end up with a temporarily suspended card.
- What fees do I need to pay? If your existing cards come with foreign transaction fees, look for one that does not. Paying in Sterling outside of the UK might come with currency conversion fees.
- How will I get cash? Using your debit card at an ATM is the simplest way to access your own money. You can carry cash and traveler’s cheques with you.
When you’re in India, remember to always keep cash handy on you, or be aware of where the nearest cash machine is.
Compare cards with fee-free currency conversion in India
Table: sorted by representative APR, promoted deals first
Compare other products
How we picked these
Finder Score for credit cards
To make comparing even easier we came up with the Finder Score. Costs, perks and suitability across 120+ cards are all weighted and scaled to produce a score out of 10. The higher the score the better the card – simple.
Read the full methodologyHow to use a credit card in …
Q
R
Frequently asked questions
Our “Best for” picks highlight top options in specific categories based on our independent evaluation (see our full methodology), while “Promoted” tags indicate sponsored placements. Selected products may not suit everyone. We track selected market offers, which may not cover every product. Products are listed in no particular order unless specified, and inclusion or ordering may be influenced by popularity or commercial agreements. Most comparison table data is provided by Defaqto or sourced directly from providers. Always evaluate your own circumstances and consider independent advice before making major financial decisions.
More resources on Finder
More guides on Finder
-
Is a travel credit card worth it?
This guide looks at whether a travel credit card is worth it, from points and cashback to the annual fees.
-
Cards like the Halifax Clarity (R.I.P.)
One does not simply start paying foreign transaction fees! The Clarity was the country’s top holiday credit card… but these are the heirs to the throne.
-
A guide to Gatwick’s lounges and how to access them
A comprehensive guide to London Gatwick’s airport lounges across both the North and South terminals and how to access them.
-
Using a credit card in the Dominican Republic
Here’s what you need to know about using a credit card in the Dominican Republic, how much it may cost you, and cash alternatives before you travel.
-
Using a credit card in Turkey
Here’s everything you need to know about using a credit card in Turkey. How much it may cost you and holiday spending tricks.
-
Using a credit card in Ghana
Here’s what you need to know about using a credit card in Ghana. We help you do your homework before you travel.
-
A guide to Heathrow’s lounges and how to access them
A comprehensive guide to London Heathrow’s airport lounges across all four terminals and how to access them.
-
Using a credit card in UAE
All the most important things that you need to know about using a credit card in UAE. Read our helpful guide before setting off on your holiday in the United Arab Emirates.
-
Using a credit card in the USA
Everything you need to know about using your credit card in the USA. We do the homework for you before you head across the pond.
-
Credit cards with free airport lounge access
Find out how you can enjoy the luxury and services of airport lounges all around the world with a credit card that offers complimentary airport lounge access.