How does a US based credit card work in India shopping?

I always had this doubt abt the US credit card...

1.How does the currency conversion work during shopping?

2.What are the additional charges in India?

3.Which cards u prefer to use in India?

4.Since we cannot carry large amt of cash...any other cheap and quick way of transfering your money.(not western union and stuff)?

Your inputs r very much appreciated.

Hi sssaustin,

Its better to use US debit card rather than a US credit card in India. because there will be lot of charges for your trasactiona as financial charges, international transactional chares, etc..

regarding your questions one by one:
1. they will consider that days conversion rate and will charge you.. it is same for debit and credit card.. but as i told you there will be some extra charges if you use credit card.

2. the additional charges will be same as i mentioned before financial charges, international transactional chares, etc..

3. I prefer Debit card to use that also if it is very much neccessary..

4. what you told is right.. we cant carry more cash with us.. so its better to trasfer to our indian accounts before travelling to india or you can withdraw from icici or ingvysya, HSBC bank ATM's but again it is same as westren Union.

hope this info helps you..

regards,
ramyaganesh.

thank you ramya for the info..

but just wondering abt the identity theft issue ..using the debit card in India..

Also have heard abt a visa travel debit card where u can charge your travel card with a amount and enjoy the benefits a debit card and be worry free...any idea abt this one?

Hi SSS,

I have always used my VISA card in India for all purchases. The card always calculates the charge based on the currency conversion rate for that day. There are no extra charges to my credit card. However, i did notice that when you go to buy jewellry or silver, then the shops do charge an extra percentage , if you use a credit card. But for daily stuff like groceries, clothes sarees etc in shops like RMKV, pothys, chennai silks , ..... My credit card bill has exactly the same amount that i paid in the shop.

I have never used my debit card in India, except to go to the ATM for withdrawing cash. I find this the safest and cheapest way of taking money to India. Yes there is a fee associated with withdrawind money from the ATM of another bank, but is is a very small amount.

Hope this clears yours doubts.

Vandhana

I agree with Vandhana.. Safest way to shop in India, use your Credit..

You got to understand... Credit is worldwide - Visa or MasterCard or Discover.. whatever you use... Thats the main reason, we have such cards..

Using a debit card means that you are asking your account internationally and if someone wants to screw up your account, they can always do that, since you had used your card.

So its always wise to use the credit card, since the money actually is from Visa and not from you. IF there are any discrepancies, after coming back from India, you can work it out with your customer support leisurely since it ain't from your checking account ;)

About the rates, only the currency conversions will take place, unless you go over a limit and purchase huge items like Gold/Silk sarees etc.. Then the store puts in a percentage for such transactions. It has nothing to do with your card, but its how the shops in India operate.. End of every business, each store has to pay a charge for all the processings done by credit cards to the respective card companies - Visa, MasterCard etc... Indian Stores are smart enough to get that processing fee from the consumer itself ;) But only certain shops do it.. Big shops like Globus, Pothys, chennai silks and highclass restuarants do not do that.

Hi sssaustin,

I dont have much idea about these travel cards in india.. but i used these when i travelled to europe on my work.. at that time my company provided me citibank international travel card which i can use for offical purpose like paying hotel bills, hiring a cab, dinner with the clients, etc..

vandhana,
its good that you didnt get any charges when you used your credit card.. But i used my VISA Credit card in bangalore for some purchase in Lifestyle and other cloth shops.. i found so many extra charges in my bill..

regards,
ramyaganesh

Ramya,

You do know that you can you can ask them about these extra charges before actually paying [ if in your receipt can ask the store or ask the card company]

nandhu and vandhana,

Thanx for the info...

But i wanted to make sure if the charges are negligible...say when we spend 1000$ and the charges are 5 $ its not going to be an issue..

So how are the charges applied...is it like very transaction or it sepends on the amt spend?

Once when we used in saravanabhavan...for 35$ bill the charges came around 8$ which I feel is too much...

So can you pls throw some light?

Ramya,
Thanks for the info...
I'm still afraid to use the debit card becos of the identity theft issue...

You can check with your credit card company by calling their customer service.
Visa charges 2% Internatioanl Transaction rate + the currency conversation rate on that date.
You need to tell them before hand that you would be in India from this date to this date, otherwise they might reject your transaction thinking that somebody is using your card.