10 Credit Card Charges in India You Should Know Before Applying
Last Updated: Nov 12, 2026
Applying for a credit card in India? Before choosing one, check more than its cashback, rewards or welcome benefits. Annual fees, interest charges, late payment penalties, foreign currency markup and cash withdrawal fees can increase the cost of using a credit card.
Understanding these credit card charges in advance can help you compare cards, avoid unnecessary expenses and choose an option that fits your spending habits. Some cards have no annual fee, while others offer fee waivers subject to specific spending conditions.
In this guide, we explain 10 common credit card charges in India, how they work and what to check before applying. You will also learn how to compare card fees and manage your credit card costs more effectively in 2026.
What Are Credit Card Charges?
Credit card charges are fees and finance costs that banks may apply when you use specific card services, carry an unpaid balance or miss a payment. These can include annual fees, interest charges, late payment fees, cash advance fees and foreign currency markup.
The applicable charges depend on the issuing bank, card variant and transaction type. Reviewing the card's Most Important Terms and Conditions (MITC) and schedule of charges before applying can help you understand its actual cost.
Common Credit Card Charges in India
Credit card issuers may charge fees for maintaining a card, carrying an unpaid balance, withdrawing cash or using certain card services. The amount depends on the bank, card variant and applicable terms. Before applying, review the card's Most Important Terms and Conditions (MITC) and fee schedule to understand the following charges.
1. Annual Fee (Membership Fee)
An annual fee is a recurring charge that some banks levy for maintaining a credit card. The amount depends on the card variant and its benefits. Premium cards may have higher annual fees, while some cards are offered without joining or annual fees. Certain issuers also waive the annual fee when cardholders meet specified yearly spending requirements. Check the fee-waiver conditions before applying.
2. Interest Charges (APR)
Credit card interest, also called a finance charge, may apply when you do not pay the total outstanding balance by the payment due date. The issuer discloses the applicable monthly interest rate and Annualised Percentage Rate (APR) in the card's MITC. Rates vary by bank, card variant and customer terms.
Paying only the minimum amount due does not prevent interest from accumulating on the remaining balance. The interest-free period may also be withdrawn until the outstanding balance is cleared. Check how your bank calculates finance charges before carrying a balance.
3. Late Payment Fee
A late payment fee may apply if you fail to make the required credit card payment by the due date. The amount and calculation method vary by issuer and card variant. Late or missed payments may also be reported to credit bureaus and affect your credit history.
Under RBI directions, late payment charges can be levied only when a credit card account remains past due for more than three days. The charges must be calculated on the outstanding amount after the due date, not on the entire total amount due. Paying your bill on time helps you avoid these charges.
4. Foreign Currency Markup Fee
When you use your credit card for an international purchase or a transaction in a foreign currency, the issuer may charge a foreign currency markup fee. This is generally calculated as a percentage of the transaction amount and varies by card. Some cards offer zero or reduced forex markup, while others charge a standard fee.
Also check for dynamic currency conversion (DCC) charges. If an overseas merchant or ATM offers to convert the transaction into Indian rupees, the conversion may involve an additional markup or exchange-rate cost.
5. Cash Advance Fee
A cash advance fee applies when you withdraw money from an ATM using your credit card. Depending on the issuer, the fee may be a percentage of the withdrawal amount, a fixed transaction charge or a combination of both.
Cash withdrawals can also attract finance charges from the transaction date, usually without the interest-free period available on eligible retail purchases. Review both the withdrawal fee and applicable interest rate before using your credit card to obtain cash.
6. Over-Limit Fee
An over-limit fee may apply when a transaction takes your credit card balance beyond the approved credit limit, subject to the issuer's terms and your consent to the over-limit facility. Under RBI directions, banks must obtain your prior explicit consent before providing this facility or charging an over-limit fee. Check your card settings and MITC for the applicable conditions and charges.
7. Reward Redemption Fee
Some credit cards charge a redemption or processing fee when you exchange reward points for vouchers, products, cashback or other benefits. The fee depends on the card's rewards programme and the redemption method. Review the rewards terms before redeeming points so you can understand the actual value of your benefits after applicable charges.
8. Balance Transfer Fee
A balance transfer allows you to move outstanding credit card dues from one card to another, subject to the receiving bank's approval and available offers. The bank may charge a processing fee or provide a promotional interest rate for a limited period.
Before accepting a balance transfer offer, compare the processing fee, interest rate, repayment period and conditions that apply after the promotional period. The fee is not uniform across banks and depends on the specific offer.
9. Card Replacement Fee
If your credit card is lost, stolen or damaged, you can request a replacement from the issuing bank. Some banks provide replacement cards without charge, while others may levy a replacement fee depending on the card variant and circumstances. Check the applicable fee schedule before requesting a replacement.
10. Returned Payment Fee
A returned payment fee may apply when a credit card bill payment fails or is reversed because of insufficient funds, incorrect payment details or another processing issue. The amount and conditions vary by issuer. Keep sufficient funds in your linked bank account and verify that your payment has been successfully processed before the due date.
10 Credit Cards Comparison Table for 2026: Fees & Charges
The following table compares selected credit card fees and charges for popular cards in India. Figures are based on issuer disclosures and should be checked against the latest Most Important Terms and Conditions (MITC) before applying. Fees, eligibility and waiver conditions may change.
| Credit Card |
Joining / Annual Fee |
Finance Charges |
Forex Markup |
Cash Withdrawal Fee |
Late Payment Fee |
| SBI Cashback Credit Card |
₹999 / ₹999 |
3.75% per month |
3.5% |
2.5% (Minimum ₹500) |
₹100–₹1,300 |
| Axis Bank ACE Credit Card |
₹499 / ₹499 |
3.75% per month |
3.5% |
2.5% (Minimum ₹500) |
₹500–₹1,300 |
| HDFC Bank MoneyBack Credit Card |
₹500 / ₹500 |
3.75% per month |
3.5% |
2.5% (Minimum ₹500) |
₹100–₹1,300 |
| ICICI Amazon Pay Credit Card |
Nil / Nil |
3.75% per month |
1.99% |
2.5% (Minimum ₹500) |
₹100–₹1,300 |
| IDFC FIRST Classic Credit Card |
Nil / Nil |
8.5%–46.2% per annum |
0% |
₹199 per transaction |
₹100–₹750 |
| Axis Bank SELECT Credit Card |
₹3,000 / ₹3,000 |
3.75% per month |
3.5% |
2.5% (Minimum ₹500) |
₹500–₹1,300 |
| HDFC Bank Diners Club Prime Credit Card |
₹2,500 / ₹2,500 |
3.75% per month |
2% |
2.5% (Minimum ₹500) |
₹100–₹1,300 |
| ICICI Bank Platinum Chip Credit Card |
Nil / Nil |
3.75% per month |
3.5% |
2.5% (Minimum ₹500) |
₹100–₹1,300 |
| IDFC FIRST Wealth Credit Card |
Nil / Nil |
8.5%–46.2% per annum |
0% |
₹199 per transaction |
₹100–₹750 |
| Axis Bank Burgundy Private Credit Card |
Nil / Nil* |
3.75% per month |
3.5%* |
2.5% (Minimum ₹500) |
₹500–₹1,300 |
Note: All amounts are in Indian rupees. GST is additional wherever applicable. Annual fee waivers and complimentary card offers are subject to eligibility and bank conditions. Finance charges and late payment fees may vary by cardholder and applicable bank terms. The Burgundy Private fee treatment depends on the eligible banking relationship. Verify the latest MITC before applying.
Cash withdrawal fees are separate from interest charges. IDFC FIRST Bank's published ₹199 withdrawal fee applies to the specified domestic ATM withdrawal facility. International withdrawal conditions may differ.
How Much Does a Credit Card Cost Per Month?
There is no fixed monthly cost for using a credit card. Your expenses depend on the card's annual fee, outstanding balance, interest rate and any additional charges for specific transactions or services.
For example, if your credit card has an annual fee of ₹2,000, its equivalent monthly cost is approximately ₹167 when the annual fee is spread across 12 months. This is a budgeting estimate, not a monthly charge collected by the bank.
Interest can increase your borrowing cost if you do not pay the total outstanding balance by the due date. For instance, if you carry an unpaid balance of ₹10,000 at an illustrative interest rate of 18% per annum, the simple monthly interest estimate is approximately ₹150, before applicable taxes and other charges.
The actual finance charge may differ depending on the issuer's calculation method, transaction dates, payments received and applicable card terms. Review your monthly statement and the card's Most Important Terms and Conditions (MITC) to understand the exact charges.
To manage your credit card costs, pay the total outstanding balance by the due date whenever possible and compare annual fees and transaction charges before choosing a card.
Expert Tips for Minimizing Credit Card Fees
- Pay Your Bill on Time: Pay the total outstanding balance by the due date whenever possible. This helps you avoid late payment charges and interest on unpaid balances. Setting up payment reminders or auto-pay can reduce the risk of missing a due date.
- Choose a Card With Suitable Annual Fees: Compare joining fees, annual fees and spending-based waiver conditions before applying. If you prefer a no-annual-fee option, explore our guide to credit cards in India without annual fees. Check the current fee terms because card offers and conditions may change.
- Use Reward Points Strategically: Choose a card that rewards your regular spending categories, such as groceries, shopping, travel or dining. Check reward expiry rules, redemption fees, minimum redemption limits and applicable exclusions before treating reward points as savings.
- Check Forex and Cash Withdrawal Charges: If you travel internationally, compare foreign currency markup fees before choosing a card. Avoid withdrawing cash using a credit card unless necessary, as cash advances can attract transaction fees and interest from the withdrawal date.
- Review the MITC and Fee Schedule: Read the Most Important Terms and Conditions (MITC), schedule of charges and cardholder agreement before applying. Pay particular attention to finance charges, late payment fees, over-limit conditions, replacement fees and payment-related charges.
- Compare Balance Transfer Offers Carefully: A balance transfer may help manage existing credit card debt, but compare the processing fee, promotional interest rate, repayment period and rate applicable after the offer ends. Do not assume that a lower introductory rate makes the transfer cheaper overall.
Understanding credit card charges before applying can help you avoid unnecessary expenses and choose a card that matches your spending habits. Compare the total cost of ownership, including annual fees, interest rates, transaction charges and reward redemption conditions, rather than focusing only on cashback or welcome benefits.
Whether you want to earn rewards, reduce borrowing costs or avoid recurring fees, reviewing the issuer's latest terms can help you make a more informed credit card decision in 2026.
For official information on credit card issuance, billing, interest and other regulatory requirements, refer to the Reserve Bank of India's credit card directions. Also check your card issuer's latest MITC and schedule of charges for product-specific fees.
Frequently Asked Questions About Credit Card Charges in India
1. What are the most common credit card charges in India?
Common credit card charges include joining and annual fees, finance charges, late payment fees, cash advance fees, foreign currency markup, over-limit fees and applicable service charges. The exact amount depends on the card and issuing bank.
2. How can I avoid unnecessary credit card charges?
Pay your total outstanding balance by the due date, avoid cash withdrawals, check annual fee waiver conditions and review charges before making international transactions. Also, read your card's Most Important Terms and Conditions (MITC) to understand applicable fees.
3. How much interest do credit cards charge in India?
Credit card interest rates vary by bank, card variant and customer terms. Issuers generally disclose finance charges as a monthly and annual rate in the card's MITC. If you carry an unpaid balance, interest may apply to the outstanding amount. Check your card's current finance charge before using the credit facility.
4. Are there credit cards with no annual fee in India?
Yes. Some Indian banks offer lifetime-free credit cards with no joining or annual fee. For example, the ICICI Bank Amazon Pay Credit Card is advertised with no joining or annual fee. Always check the latest issuer terms, as fees and eligibility conditions may differ across card offers.
5. What happens if I miss my credit card payment due date?
If you miss the payment due date, the bank may charge a late payment fee and apply finance charges to the unpaid balance, subject to applicable rules and card terms. Late or missed payments may also affect your credit score. Pay at least the required amount by the due date, preferably the full outstanding balance.
6. How much does it cost to maintain a credit card every month?
There is no fixed monthly cost for every credit card. Your cost may include the annual fee divided across 12 months, interest on carried-forward balances and charges for services such as cash withdrawals or foreign currency transactions. A lifetime-free card may have no annual fee, but other charges can still apply.
7. What is the difference between a credit card joining fee and an annual fee?
A joining fee is a one-time charge that may apply when you receive a new credit card. An annual fee is a recurring charge, usually billed once a year, for maintaining the card. Some cards waive these fees or offer spending-based fee waivers.
8. What is the difference between a cash advance fee and a balance transfer fee?
A cash advance fee applies when you withdraw cash using your credit card. A balance transfer fee may apply when you move an outstanding balance from one credit card to another. Both charges depend on the issuer's terms and the specific transaction.
9. Are credit card charges the same across all banks in India?
No. Credit card charges vary by bank and card variant. Joining fees, annual fees, finance charges, cash advance fees, foreign currency markup and late payment charges may all differ. Compare the issuer's latest fee schedule and MITC before applying.
10. Can I request my bank to waive a credit card annual fee?
Yes. You can contact your bank and request an annual fee waiver. Some issuers provide waivers when you meet a specified annual spending requirement, while others may consider requests individually. A waiver is not guaranteed, so check the card's published fee-waiver conditions.