IDFC FIRST Bank Credit Cards Get Zero Forex Markup — And International Spends Continue Earning Rewards

IDFC FIRST Bank has made a significant change to how its credit cards work for international spending: zero forex markup is being extended across its credit card portfolio.

There was, however, an important catch in the initial announcement. The bank had indicated that international transactions would no longer earn reward points after the zero-forex benefit came into effect.

That position was subsequently reconsidered.

According to a September 15, 2026 report by Moneycontrol, citing the bank's latest communication, IDFC FIRST Bank has decided that international transactions will continue to earn applicable reward points according to the reward structure of the individual card, while retaining zero forex markup.

For cardholders, that distinction matters. Zero forex markup reduces the cost of spending in foreign currencies; continuing rewards means users do not have to give up their card's applicable earning rate in exchange for that saving.

There is one complication CardRecommend found while checking the change: some IDFC FIRST Bank product pages still carry the earlier notice stating that international transactions will stop earning reward points from October 26, 2026. Cardholders should therefore check the latest communication and card-specific terms before relying on a particular reward rate.

What has IDFC FIRST Bank changed?

The change has happened in two stages.

On September 9, 2026, IDFC FIRST Bank announced zero forex markup across its credit card portfolio. This means eligible foreign-currency transactions would no longer attract the additional forex markup normally charged by the card issuer.

The original communication also indicated that international transactions would stop earning reward points.

That created an obvious trade-off: cardholders would save on forex markup but lose the rewards they previously earned on international transactions.

According to Moneycontrol, the bank reconsidered this position in a communication dated September 13. The revised proposition allows cardholders to receive both benefits:

The key point is that zero forex markup does not mean the transaction itself becomes free of every currency-related cost. The foreign-currency amount still has to be converted into Indian rupees using the applicable exchange rate.

What does zero forex markup actually mean?

When an Indian credit card is used for a transaction denominated in a foreign currency, the amount is converted into rupees. Many credit cards then levy a foreign currency markup over the converted amount.

Exchange4media notes that such forex charges commonly fall in the region of roughly 1.5% to 3.5%, depending on the card and issuer.

With a zero-forex-markup card, that issuer markup is removed.

Consider a simplified example.

Suppose the converted rupee value of your foreign purchase is ₹1,00,000.

With a card charging a 3.5% forex markup, the markup alone would be:

₹1,00,000 × 3.5% = ₹3,500

GST applicable to the markup can increase the cost further.

With a genuine 0% forex markup, that particular ₹3,500 issuer markup disappears.

The exact rupee amount charged will still depend on the applicable currency conversion rate and transaction processing.

That is why zero forex markup is particularly relevant for people who spend substantial amounts overseas or regularly make purchases from international merchants.

Reward points make the revised policy more interesting

Removing forex markup was already a useful change. Retaining rewards changes the calculation further.

Under the latest reported policy, an international transaction should earn rewards according to the specific IDFC FIRST credit card's applicable reward programme.

This wording is important.

It does not mean every IDFC FIRST Bank card earns the same reward rate internationally. Nor does it mean every foreign transaction automatically qualifies for accelerated rewards.

The earning rate depends on the card, transaction category, exclusions and the applicable reward programme.

For example, IDFC FIRST Bank's current FIRST WOW! page states that the card earns 4X reward points on online, offline and international spends, while certain categories such as insurance, utilities, FASTag and railway spends earn at a different rate. The page also lists categories where rewards are not provided.

Cardholders should therefore separate two questions:

1. 1Will IDFC FIRST charge a forex markup? Under the new proposition, the answer is zero forex markup on international spending.
2. 2How many rewards will I earn? That depends on the individual credit card and transaction.

That distinction prevents the headline benefit from being interpreted as a universal reward rate.

Zero forex markup is now much broader than a few travel-focused cards

Zero forex was not entirely new to IDFC FIRST Bank.

Cards such as FIRST WOW! were already positioned around zero forex markup, and the bank has also offered the feature on products including Mayura and Diamond Reserve.

The major change is the expansion of the proposition across the bank's credit card portfolio rather than keeping zero forex restricted to selected products.

IDFC FIRST Bank's dedicated zero-forex page currently states that all IDFC FIRST Bank credit cards are zero forex markup credit cards and lists products including FIRST Classic, FIRST Millennia, FIRST Select, FIRST Wealth, Ashva, Mayura, Diamond Reserve, FIRST Power, FIRST Power+, IndiGo IDFC FIRST variants, FIRST WOW!, WOW! Black, Quantum+, Hello Cashback, FIRST EARN and LIC co-branded cards.

Individual card terms can still differ considerably, particularly for rewards, fees, lounge access and other benefits.

Don't select INR while paying abroad

There is another cost that zero forex markup does not necessarily protect you from: Dynamic Currency Conversion, or DCC.

Imagine you are paying for dinner in Dubai. The card terminal gives you two options:

• pay in UAE dirhams; or
• pay in Indian rupees.

Choosing INR may feel easier because you immediately know the rupee amount. But the merchant or payment provider can apply its own conversion rate or DCC charge.

That charge is separate from IDFC FIRST Bank's forex markup.

IDFC FIRST Bank itself advises customers to choose the local currency when making international payments to receive the intended benefit of zero forex markup.

So in Dubai, choose AED. In the US, choose USD. In the UK, choose GBP.

Zero forex markup is most useful when the transaction is actually processed in the foreign currency.

What about international online purchases?

The benefit is not limited to physically swiping or tapping the card overseas.

A transaction with an international merchant that is denominated and processed in a foreign currency can also involve forex conversion.

That means zero forex markup can potentially matter for expenses such as overseas hotel bookings, international shopping websites, foreign software subscriptions and other eligible transactions billed in currencies such as USD, EUR or GBP.

However, simply buying something from an international company does not automatically mean the transaction is a foreign-currency transaction. If a merchant processes the payment in INR, the mechanics can be different.

Always check the transaction currency before assuming the zero-forex benefit applies.

How much could zero forex markup save?

The saving depends on what your existing card would otherwise charge.

For illustration, consider ₹2 lakh of foreign-currency spending during a trip.

These figures show only the markup and are intended to illustrate the difference between fee structures. Taxes applicable to a competing card's forex markup and differences in currency conversion rates can affect the actual cost.

For someone making one small overseas transaction a year, the absolute saving may be modest.

For a person spending several lakh rupees annually on foreign travel or international purchases, removing a 2–3.5% markup can have a much larger impact.

Does this make every IDFC FIRST card equally good for international spending?

No.

Forex markup is only one part of evaluating a credit card.

Two cards can both charge zero forex markup while providing very different value because their reward structures, annual fees, lounge programmes, travel benefits, spending thresholds and exclusions are different.

Someone primarily interested in international spending should compare at least:

• forex markup;
• actual reward rate on international transactions;
• annual or joining fee;
• reward redemption value;
• reward caps and exclusions;
• international lounge access, if relevant;
• card-network acceptance; and
• other travel benefits they are actually likely to use.

The new policy makes forex charges less useful as a differentiator within IDFC FIRST Bank's own portfolio. The more important question becomes which individual IDFC FIRST card has the reward structure and other benefits that best fit the cardholder's spending.

One important discrepancy to watch

There is an unusual timing issue with this announcement.

Moneycontrol reported on September 15 that IDFC FIRST Bank had reconsidered its earlier decision and confirmed that international transactions would continue earning applicable reward points alongside zero forex markup.

However, during CardRecommend's verification, some current pages on IDFC FIRST Bank's website were still displaying the earlier condition.

For example, the FIRST Wealth page currently states that international transactions will not earn reward points effective October 26, 2026.

That wording conflicts with the subsequently reported September 13 communication.

The most plausible explanation is that some product-page disclosures have not yet been updated to reflect the revised decision, but CardRecommend cannot treat that explanation as confirmed until the issuer's relevant terms are updated.

For anyone planning substantial international spending, checking the latest card-specific terms or obtaining confirmation from IDFC FIRST Bank remains sensible.

CardRecommend Editor's Take

The important part of this announcement isn't simply the phrase "zero forex."

IDFC FIRST Bank already had cards offering zero forex markup. The bigger development is extending that pricing proposition across its credit card portfolio and, according to the bank's latest reported communication, retaining the applicable rewards on international transactions as well.

That removes a trade-off that would otherwise have weakened the proposition.

For international spenders, the calculation is now more interesting: instead of asking only which IDFC FIRST card has the lowest forex charge, it becomes worth looking at which card gives the most useful rewards and travel benefits for your particular spending pattern.

We would nevertheless watch the issuer documentation closely. Some official product pages still show the older October 26 reward exclusion. Until those disclosures are aligned with the latest communication, cardholders should verify their individual card's current reward terms before making a large foreign-currency transaction.