{"id":23160,"date":"2025-06-20T16:25:28","date_gmt":"2025-06-20T10:55:28","guid":{"rendered":"https:\/\/blog.razorpay.in\/blog\/?p=23160"},"modified":"2026-02-11T16:01:47","modified_gmt":"2026-02-11T10:31:47","slug":"cross-border-fees-explained","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/cross-border-fees-explained\/","title":{"rendered":"Cross-Border Fees Explained: How They Work and How to Avoid Them"},"content":{"rendered":"<p data-sourcepos=\"7:1-7:260\"><span class=\"citation-2175 citation-end-2175\">Let&#8217;s say you purchased a Canva Pro subscription priced in USD. <\/span> You expected your Indian credit card to be charged Rs 830\u2014but the bill was Rs 870. <span class=\"citation-2174 citation-end-2174\">That extra Rs 40? <\/span> <span class=\"citation-2173\">It\u2019s probably a <span class=\"citation-2170\">cross-border fee<\/span><\/span><span class=\"citation-2173 citation-end-2173\">. <\/span><\/p>\n<p data-sourcepos=\"9:1-9:351\"><span class=\"citation-2172 citation-end-2172\"><span class=\"citation-2170\">Cross-border fees<\/span> are common but often poorly understood charges that sneak into international transactions\u2014whether you&#8217;re buying software online, running ads globally, or receiving export payments. <\/span> <span class=\"citation-2171 citation-end-2171\">If you\u2019re a <a href=\"https:\/\/razorpay.com\/blog\/razorpay-moneysaver-export-account-freelancers\/\">freelancer<\/a>, SaaS founder, <a href=\"https:\/\/razorpay.com\/blog\/money-saver-export-account\/\">exporter<\/a>, or simply managing global payments, this guide is for you. <\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e7a5b343465\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e7a5b343465\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/cross-border-fees-explained\/#Understanding_Cross-Border_Fees_The_What_Why_and_How\" >Understanding Cross-Border Fees: The What, Why, and How<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/cross-border-fees-explained\/#Breaking_Down_the_4_Common_Types_of_Cross-Border_Fees\" >Breaking Down the 4 Common Types of Cross-Border Fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/cross-border-fees-explained\/#Cross-Border_Fees_in_the_Indian_Context\" >Cross-Border Fees in the Indian Context<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/cross-border-fees-explained\/#The_Bottom_Line_for_Exporters_Net_Payout_%E2%89%A0_Gross_Invoice\" >The Bottom Line for Exporters: Net Payout \u2260 Gross Invoice<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/cross-border-fees-explained\/#Switch_to_Razorpay_Transparent_Cross-Border_Payments_Zero_Hidden_Fees\" >Switch to Razorpay: Transparent Cross-Border Payments, Zero Hidden Fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/cross-border-fees-explained\/#FAQs\" >FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2 data-sourcepos=\"12:1-12:63\"><span class=\"ez-toc-section\" id=\"Understanding_Cross-Border_Fees_The_What_Why_and_How\"><\/span>Understanding Cross-Border Fees: The What, Why, and How<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-sourcepos=\"14:1-14:36\">What Are Cross-Border Fees?<\/h3>\n<p data-sourcepos=\"15:1-15:391\"><span class=\"citation-2170\">A cross-border fee<\/span><span class=\"citation-2170 citation-end-2170\">\u00a0is an extra charge applied when a transaction involves two countries\u2014usually when your bank card or payment account is used outside its issuing country or for payments in a foreign currency. <\/span> <span class=\"citation-2169 citation-end-2169\">For example, if you use your Indian card on a US-based website, your bank, card network, and the processor may each add a small fee. <\/span><\/p>\n<h3 data-sourcepos=\"17:1-17:30\">\u00a0Why Are They Charged?<\/h3>\n<p data-sourcepos=\"18:1-18:320\"><span class=\"citation-2168 citation-end-2168\">These fees exist to cover the cost, risk, and currency conversion complexity of cross-border transactions. <\/span> For the financial institutions involved, processing payments across different countries, currencies, and regulatory systems is a complex task, and these fees compensate them for that service.<\/p>\n<h3 data-sourcepos=\"20:1-20:46\">How Can You Reduce Cross-Border Fees?<\/h3>\n<ul data-sourcepos=\"21:1-24:0\">\n<li data-sourcepos=\"21:1-21:222\"><strong><span class=\"citation-2167\">Choose the Right Payment Processor:<\/span><\/strong><span class=\"citation-2167 citation-end-2167\"> Some processors, like Razorpay, specialize in international transactions and offer more transparent and competitive rates by using direct payment routes. <\/span><\/li>\n<li data-sourcepos=\"22:1-22:142\"><strong><span class=\"citation-2166\">Use Multi-Currency Accounts:<\/span><\/strong><span class=\"citation-2166 citation-end-2166\"> Holding funds in currencies like USD or EUR can help avoid frequent conversion fees. <\/span><\/li>\n<li data-sourcepos=\"23:1-24:0\"><strong><span class=\"citation-2165\">Compare True FX Costs:<\/span><\/strong><span class=\"citation-2165 citation-end-2165\"> Always check the total cost, which includes not just the transfer fee but also the markup hidden in the exchange rate. <\/span><\/li>\n<\/ul>\n<h2 data-sourcepos=\"26:1-26:61\"><span class=\"ez-toc-section\" id=\"Breaking_Down_the_4_Common_Types_of_Cross-Border_Fees\"><\/span>Breaking Down the 4 Common Types of Cross-Border Fees<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-sourcepos=\"28:1-28:252\"><span class=\"citation-2164 citation-end-2164\">A single international transaction can feel like it&#8217;s being hit by multiple small charges. <\/span> <span class=\"citation-2163 citation-end-2163\">That&#8217;s because it often is. <\/span> <span class=\"citation-2162 citation-end-2162\">Here\u2019s a clear breakdown of the four key fees you may encounter. <\/span><\/p>\n<h3 data-sourcepos=\"30:1-30:40\">1. Cross-Border Transaction Fee<\/h3>\n<p data-sourcepos=\"31:1-31:310\"><span class=\"citation-2161 citation-end-2161\">Think of this as the basic &#8220;toll&#8221; for a payment crossing a digital border. <\/span> <span class=\"citation-2160 citation-end-2160\">It&#8217;s a fee charged simply because a card from one country is being used with a merchant based in another, and it applies automatically, even if the transaction is in your home currency. <\/span><\/p>\n<ul data-sourcepos=\"32:1-34:0\">\n<li data-sourcepos=\"32:1-32:81\"><strong><span class=\"citation-2159\">Charged by:<\/span><\/strong><span class=\"citation-2159 citation-end-2159\"> Card Networks (like Visa or Mastercard). <\/span><\/li>\n<li data-sourcepos=\"33:1-34:0\"><strong><span class=\"citation-2158\">Typical cost:<\/span><\/strong><span class=\"citation-2158 citation-end-2158\"> 0.5% to 1% of the transaction value. <\/span><\/li>\n<\/ul>\n<h3 data-sourcepos=\"35:1-35:39\">2. Cross-Border Processing Fee<\/h3>\n<p data-sourcepos=\"36:1-36:336\"><span class=\"citation-2157 citation-end-2157\">This is the fee charged by the payment processor or the merchant&#8217;s bank (the &#8220;acquirer&#8221;) for the service of securely handling and clearing the payment through complex international banking systems. <\/span> <span class=\"citation-2156 citation-end-2156\">It\u2019s their charge for moving the money from your bank to the seller\u2019s bank across the world. <\/span><\/p>\n<ul data-sourcepos=\"37:1-39:0\">\n<li data-sourcepos=\"37:1-37:81\"><strong><span class=\"citation-2155\">Charged by:<\/span><\/strong><span class=\"citation-2155 citation-end-2155\"> The Payment Processor or Acquiring Bank. <\/span><\/li>\n<li data-sourcepos=\"38:1-39:0\"><strong><span class=\"citation-2154\">Typical cost:<\/span><\/strong><span class=\"citation-2154 citation-end-2154\"> 1%\u20132% of the transaction value. <\/span><\/li>\n<\/ul>\n<h3 data-sourcepos=\"40:1-40:41\">3. Foreign Transaction Fee (FTF)<\/h3>\n<p data-sourcepos=\"41:1-41:319\"><span class=\"citation-2153\">This is a separate charge levied by your <\/span><em><span class=\"citation-2153\">own<\/span><\/em><span class=\"citation-2153 citation-end-2153\"> bank or card issuer (e.g., HDFC, ICICI, Amex) for the convenience of allowing you to make a purchase in a foreign currency. <\/span> <span class=\"citation-2152 citation-end-2152\">Some premium cards waive this fee, but for most, it appears as a separate line item on your statement. <\/span><\/p>\n<ul data-sourcepos=\"42:1-44:0\">\n<li data-sourcepos=\"42:1-42:84\"><strong><span class=\"citation-2151\">Charged by:<\/span><\/strong><span class=\"citation-2151 citation-end-2151\"> Your Personal or Business Bank\/Card Issuer. <\/span><\/li>\n<li data-sourcepos=\"43:1-44:0\"><strong><span class=\"citation-2150\">Typical cost:<\/span><\/strong><span class=\"citation-2150 citation-end-2150\"> 1%\u20133.5% of the transaction value. <\/span><\/li>\n<\/ul>\n<h4 data-sourcepos=\"45:1-45:50\">4. Currency Conversion Fee (or FX Markup)<\/h4>\n<p data-sourcepos=\"46:1-46:476\"><span class=\"citation-2149 citation-end-2149\">This is often the biggest and most deceptive fee because it&#8217;s usually hidden. <\/span> <span class=\"citation-2148 citation-end-2148\">Instead of charging an explicit fee, providers give you an exchange rate that&#8217;s worse than the real mid-market rate. <\/span> <span class=\"citation-2147 citation-end-2147\">That difference, or &#8220;markup,&#8221; is their profit. <\/span> <span class=\"citation-2146\">For example, the Rs 1.70 difference between a real rate of <\/span><code><span class=\"citation-2146\">1 USD = \u20b983.50<\/span><\/code><span class=\"citation-2146\"> and a provider&#8217;s rate of <\/span><code><span class=\"citation-2146\">1 USD = \u20b981.80<\/span><\/code><span class=\"citation-2146 citation-end-2146\"> is the hidden fee you pay. <\/span><\/p>\n<ul data-sourcepos=\"47:1-49:0\">\n<li data-sourcepos=\"47:1-47:86\"><strong><span class=\"citation-2145\">Charged by:<\/span><\/strong><span class=\"citation-2145 citation-end-2145\"> The platform or bank converting the currency. <\/span><\/li>\n<li data-sourcepos=\"48:1-49:0\"><strong><span class=\"citation-2144\">Common markup:<\/span><\/strong><span class=\"citation-2144 citation-end-2144\"> 2%\u20134% above the real exchange rate. <\/span><\/li>\n<\/ul>\n<h2 data-sourcepos=\"53:1-53:47\"><span class=\"ez-toc-section\" id=\"Cross-Border_Fees_in_the_Indian_Context\"><\/span>Cross-Border Fees in the Indian Context<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-sourcepos=\"55:1-55:322\"><span class=\"citation-2143 citation-end-2143\">For Indian businesses and consumers, <a href=\"https:\/\/razorpay.com\/blog\/receive-international-payments-in-india\/\">international transactions<\/a> are a daily reality. <\/span> <span class=\"citation-2142 citation-end-2142\">However, each time money crosses India&#8217;s borders, a unique set of fees and taxes comes into play. <\/span> <span class=\"citation-2141 citation-end-2141\">Here&#8217;s a detailed look at how these charges apply in common scenarios. <\/span><\/p>\n<h3 data-sourcepos=\"57:1-57:56\">Common Scenarios for Cross-Border Fees in India<\/h3>\n<ul data-sourcepos=\"58:1-61:0\">\n<li data-sourcepos=\"58:1-58:326\"><strong><span class=\"citation-2140\">Subscribing to International SaaS and Digital Tools:<\/span><\/strong><span class=\"citation-2140 citation-end-2140\"> When your business subscribes to essential tools like Adobe Creative Cloud or Slack, the payment is often processed by their international entities, triggering a <a href=\"https:\/\/razorpay.com\/blog\/business-banking\/exchange-rates\/\">foreign transaction fee<\/a> from your bank and a processing fee from the card network. <\/span><\/li>\n<li data-sourcepos=\"59:1-59:177\"><strong><span class=\"citation-2139\">Running Global Advertising Campaigns:<\/span><\/strong><span class=\"citation-2139 citation-end-2139\"> Funding your Google Ads or Meta ad account is a classic <a href=\"https:\/\/razorpay.com\/blog\/b2b-cross-border-payments-guide-india\/\">B2B cross-border<\/a> transaction subject to multiple fees. <\/span><\/li>\n<li data-sourcepos=\"60:1-61:0\"><strong><span class=\"citation-2138\">Receiving Payments as a Freelancer or Exporter:<\/span><\/strong><span class=\"citation-2138 citation-end-2138\"> When you invoice a client in the US for $1,000, you will almost never receive the full amount converted to INR. <\/span> <span class=\"citation-2137 citation-end-2137\">The payment is reduced by intermediary bank fees, platform service charges, and currency conversion losses. <\/span><\/li>\n<\/ul>\n<h3 data-sourcepos=\"62:1-62:53\">GST on Cross-Border Payments: The OIDAR Rule<\/h3>\n<p data-sourcepos=\"63:1-63:568\"><span class=\"citation-2136 citation-end-2136\">If your business in India purchases digital services from a non-Indian provider (like paying for AWS server hosting), 18% GST applies under the OIDAR (Online Information Database Access and Retrieval) rules. <\/span> <span class=\"citation-2135 citation-end-2135\">Under the Reverse Charge Mechanism (RCM), the responsibility to pay this GST falls on you, the Indian recipient of the service. <\/span> <span class=\"citation-2134 citation-end-2134\">You must self-calculate and pay the tax to the government during your regular GST filings, and then claim it back as an Input Tax Credit (ITC) if you are eligible. <\/span><\/p>\n<div class=\"source-inline-chip-container ng-star-inserted\"><\/div>\n<h2 data-sourcepos=\"66:1-66:65\"><span class=\"ez-toc-section\" id=\"The_Bottom_Line_for_Exporters_Net_Payout_%E2%89%A0_Gross_Invoice\"><\/span>The Bottom Line for Exporters: Net Payout \u2260 Gross Invoice<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-sourcepos=\"68:1-68:432\"><span class=\"citation-2133 citation-end-2133\">Let&#8217;s illustrate this with a real-world scenario. <\/span> <span class=\"citation-2132 citation-end-2132\">An Indian freelance developer invoices a US client for $1,000. <\/span> <span class=\"citation-2131 citation-end-2131\">While the client pays the full amount, the money that actually reaches the developer&#8217;s Indian bank account is significantly less after various fees are deducted. <\/span> <span class=\"citation-2130 citation-end-2130\">Here is a realistic breakdown of how a $1,000 payment can shrink: <\/span><\/p>\n<div class=\"horizontal-scroll-wrapper\">\n<div class=\"table-block-component\">\n<div class=\"table-block has-export-button\">\n<div class=\"table-content not-end-of-paragraph\">\n<table data-sourcepos=\"70:1-77:153\">\n<tbody>\n<tr data-sourcepos=\"70:1-70:46\">\n<th align=\"left\" data-sourcepos=\"70:1-70:6\">Item<\/th>\n<th align=\"left\" data-sourcepos=\"70:8-70:21\">Amount (USD)<\/th>\n<th align=\"left\" data-sourcepos=\"70:23-70:36\">Amount (INR)<\/th>\n<th align=\"left\" data-sourcepos=\"70:38-70:44\">Notes<\/th>\n<\/tr>\n<tr data-sourcepos=\"72:1-72:98\">\n<td align=\"left\" data-sourcepos=\"72:1-72:26\"><strong>Gross Invoice Amount<\/strong><\/td>\n<td align=\"left\" data-sourcepos=\"72:28-72:38\">$1,000.00<\/td>\n<td align=\"left\" data-sourcepos=\"72:40-72:40\"><\/td>\n<td align=\"left\" data-sourcepos=\"72:42-72:96\"><span class=\"citation-2129 citation-end-2129\">The amount the US client pays. <\/span><\/td>\n<\/tr>\n<tr data-sourcepos=\"73:1-73:159\">\n<td align=\"left\" data-sourcepos=\"73:1-73:29\"><strong>Platform Processing Fee<\/strong><\/td>\n<td align=\"left\" data-sourcepos=\"73:31-73:40\">&#8211; $16.65<\/td>\n<td align=\"left\" data-sourcepos=\"73:42-73:42\"><\/td>\n<td align=\"left\" data-sourcepos=\"73:44-73:157\"><span class=\"citation-2128 citation-end-2128\">A fee charged by the <a href=\"https:\/\/razorpay.com\/blog\/payment-gateway-101\/\">payment gateway<\/a> for using its service to facilitate the transaction. <\/span><\/td>\n<\/tr>\n<tr data-sourcepos=\"74:1-74:184\">\n<td align=\"left\" data-sourcepos=\"74:1-74:27\"><strong>e-FIRC Generation Fee<\/strong><\/td>\n<td align=\"left\" data-sourcepos=\"74:29-74:37\">&#8211; $2.50<\/td>\n<td align=\"left\" data-sourcepos=\"74:39-74:39\"><\/td>\n<td align=\"left\" data-sourcepos=\"74:41-74:182\"><span class=\"citation-2127 citation-end-2127\">A fixed fee for generating the electronic Foreign Inward Remittance Certificate, which is essential for export proof. <\/span><\/td>\n<\/tr>\n<tr data-sourcepos=\"75:1-75:169\">\n<td align=\"left\" data-sourcepos=\"75:1-75:26\"><strong>GST on Services (18%)<\/strong><\/td>\n<td align=\"left\" data-sourcepos=\"75:28-75:36\">&#8211; $3.45<\/td>\n<td align=\"left\" data-sourcepos=\"75:38-75:38\"><\/td>\n<td align=\"left\" data-sourcepos=\"75:40-75:167\"><span class=\"citation-2126 citation-end-2126\">This is the 18% <a href=\"https:\/\/razorpay.com\/gst-calculator\/\">GST<\/a> applied to the platform&#8217;s service charges ($16.65 + $2.50), not the invoice amount. <\/span><\/td>\n<\/tr>\n<tr data-sourcepos=\"76:1-76:139\">\n<td align=\"left\" data-sourcepos=\"76:1-76:30\"><strong>Net Amount for Conversion<\/strong><\/td>\n<td align=\"left\" data-sourcepos=\"76:32-76:43\"><strong>$977.40<\/strong><\/td>\n<td align=\"left\" data-sourcepos=\"76:45-76:45\"><\/td>\n<td align=\"left\" data-sourcepos=\"76:47-76:137\"><span class=\"citation-2125 citation-end-2125\">The final USD amount available after all direct fees are deducted. <\/span><\/td>\n<\/tr>\n<tr data-sourcepos=\"77:1-77:153\">\n<td align=\"left\" data-sourcepos=\"77:1-77:22\"><strong>Final Net Payout<\/strong><\/td>\n<td align=\"left\" data-sourcepos=\"77:24-77:24\"><\/td>\n<td align=\"left\" data-sourcepos=\"77:26-77:40\"><strong>\u00a0\u20b979,978<\/strong><\/td>\n<td align=\"left\" data-sourcepos=\"77:42-77:151\"><span class=\"citation-2124 citation-end-2124\">Converted at a provider&#8217;s rate of \u20b981.83 per USD, which includes a hidden markup. <\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<div class=\"table-footer hide-from-message-actions ng-star-inserted\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p data-sourcepos=\"79:1-79:275\"><span class=\"citation-2123\">In this scenario, over <\/span><strong><span class=\"citation-2123\">$42 (or more than 4%) of the original invoice value was lost<\/span><\/strong><span class=\"citation-2123 citation-end-2123\"> to various cross-border charges. <\/span> <span class=\"citation-2122 citation-end-2122\">This is why understanding every fee, both visible and hidden, is crucial for protecting your profit margins. <\/span><\/p>\n<h2 data-sourcepos=\"84:1-84:79\"><span class=\"ez-toc-section\" id=\"Switch_to_Razorpay_Transparent_Cross-Border_Payments_Zero_Hidden_Fees\"><\/span>Switch to Razorpay: Transparent Cross-Border Payments, Zero Hidden Fees<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p data-sourcepos=\"86:1-86:244\"><span class=\"citation-2121 citation-end-2121\">Tired of unclear charges, FX losses, and compliance hassles? <\/span> <span class=\"citation-2120 citation-end-2120\">Razorpay&#8217;s Cross-Border Payment Solutions are built for Indian businesses\u2014with full visibility, lower fees, and regulatory peace of mind. <\/span><\/p>\n<h3 data-sourcepos=\"88:1-88:22\">Why Razorpay?<\/h3>\n<ul data-sourcepos=\"89:1-94:0\">\n<li data-sourcepos=\"89:1-89:83\"><span class=\"citation-2119 citation-end-2119\"><strong>No FX markups:<\/strong> Get real interbank rates with no surprises. <\/span><\/li>\n<li data-sourcepos=\"90:1-90:92\"><span class=\"citation-2118 citation-end-2118\"><strong>Fewer Intermediaries:<\/strong> Benefit from direct global settlement routes. <\/span><\/li>\n<li data-sourcepos=\"91:1-91:88\"><span class=\"citation-2117 citation-end-2117\"><strong>Live Currency Conversion:<\/strong> Know exactly what you pay or receive. <\/span><\/li>\n<li data-sourcepos=\"92:1-92:100\"><span class=\"citation-2116 citation-end-2116\"><strong>Automated Compliance:<\/strong> GST, FIRC, <a href=\"https:\/\/razorpay.com\/blog\/exporting-software-softex-filing-simplified\/\">Softex<\/a>, and <a href=\"https:\/\/razorpay.com\/blog\/razorpays-simplified-iec-registration-service\/\">IEC<\/a> are handled automatically. <\/span><\/li>\n<li data-sourcepos=\"93:1-94:0\"><span class=\"citation-2115 citation-end-2115\"><strong>Supports INR &amp; <a href=\"https:\/\/www.npci.org.in\/what-we-do\/upi\/product-overview\" rel=\"nofollow noopener\" target=\"_blank\">UPI<\/a>:<\/strong> Let Indian customers pay you in their currency, friction-free. <\/span><\/li>\n<\/ul>\n<p data-sourcepos=\"95:1-95:113\"><span class=\"citation-2114 citation-end-2114\">Join 10,000+ global businesses using Razorpay for secure, compliant cross-border payments. <\/span><strong>Explore <a href=\"https:\/\/razorpay.com\/accept-international-payments\/\">Razorpay&#8217;s Cross-Border Solutions<\/a><\/strong><\/p>\n<p data-sourcepos=\"95:1-95:113\">Expanding to Southeast Asia? Accept local payments seamlessly with our <a href=\"https:\/\/curlec.com\/payment-gateway\/\" rel=\"nofollow noopener\" target=\"_blank\"><b>Payment Gateway in Malaysia<\/b><\/a>, built for fast settlements, local compliance, and friction-free customer experiences.<\/p>\n<h2 data-sourcepos=\"100:1-100:12\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3 data-sourcepos=\"102:1-102:36\">1.What is a cross-border fee?<\/h3>\n<p data-sourcepos=\"103:1-103:355\"><span class=\"citation-2113\">A <span class=\"citation-2173\"><span class=\"citation-2170\">cross-border fee<\/span><\/span><\/span><span class=\"citation-2113 citation-end-2113\">\u00a0is an umbrella term for charges applied when a financial transaction crosses international borders, for example, when a card issued in India is used at a US-based merchant. <\/span> <span class=\"citation-2112 citation-end-2112\">This fee covers the costs and complexities of processing payments between different countries and currency systems. <\/span><\/p>\n<h3 data-sourcepos=\"105:1-105:67\">2. What is the cross-border transaction fee for credit cards?<\/h3>\n<p data-sourcepos=\"106:1-106:264\"><span class=\"citation-2111\">The <span class=\"citation-2173\"><span class=\"citation-2170\">cross-border transaction fee<\/span><\/span><\/span><span class=\"citation-2111 citation-end-2111\">\u00a0is a specific charge, typically 1-3% of the transaction value, levied by credit card networks (like Visa\/Mastercard) and the card-issuing bank when a card is used for a purchase outside its issuing country. <\/span><\/p>\n<h3 data-sourcepos=\"108:1-108:64\">3. How can I avoid or reduce cross-border processing fees?<\/h3>\n<p data-sourcepos=\"109:1-109:379\"><span class=\"citation-2110\">To reduce the <span class=\"citation-2111\"><span class=\"citation-2173\"><span class=\"citation-2170\">cross-border processing fee<\/span><\/span><\/span><\/span><span class=\"citation-2110 citation-end-2110\">, cross-border sellers and buyers should use a modern payment gateway like Razorpay that offers transparent pricing and direct settlement routes. <\/span> <span class=\"citation-2109 citation-end-2109\">Using a multi-currency account to pay in the merchant&#8217;s local currency can also help avoid unnecessary conversion charges and intermediary fees. <\/span><\/p>\n<h3 data-sourcepos=\"111:1-111:58\">4. Is there GST on cross-border payments from India?<\/h3>\n<p data-sourcepos=\"112:1-112:221\"><span class=\"citation-2108 citation-end-2108\">Yes, for certain transactions. <\/span> <span class=\"citation-2107 citation-end-2107\">An 18% GST is levied on the import of digital services from international companies under OIDAR rules, which is payable by the Indian recipient. <\/span><\/p>\n<h3 data-sourcepos=\"114:1-114:46\">5. How do foreign transaction fees work?<\/h3>\n<p data-sourcepos=\"115:1-115:343\"><span class=\"citation-2106 citation-end-2106\">Foreign Transaction Fee (FTF) are charged by your own bank or card issuer as a percentage of the transaction amount whenever you make a purchase in a foreign currency. This fee is a charge for the service of processing an international payment through an <a href=\"https:\/\/razorpay.com\/international-payment-gateway-india\/\">international payment gateway<\/a> and is separate from the currency conversion cost.<\/span><\/p>\n<h3 data-sourcepos=\"117:1-117:88\">6. What&#8217;s the difference between foreign transaction and currency conversion fees?<\/h3>\n<p data-sourcepos=\"118:1-118:334\"><span class=\"citation-2104 citation-end-2104\"><span class=\"citation-2106 citation-end-2106\">Foreign Transaction Fees <\/span>are explicit charges from your bank for making an international purchase. <\/span> <span class=\"citation-2103\">In contrast, currency conversion fees <\/span><span class=\"citation-2103 citation-end-2103\">are often hidden costs baked into the exchange rate as a &#8220;markup,&#8221; representing the profit a provider makes for converting one currency to another.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Let&#8217;s say you purchased a Canva Pro subscription priced in USD. You expected your Indian credit card to be charged Rs 830\u2014but the bill was Rs 870. That extra Rs 40? It\u2019s probably a cross-border fee. Cross-border fees are common but often poorly understood charges that sneak into international transactions\u2014whether you&#8217;re buying software online, running<\/p>\n","protected":false},"author":172,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[369],"tags":[],"class_list":{"0":"post-23160","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-international-payments"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/23160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/172"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=23160"}],"version-history":[{"count":6,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/23160\/revisions"}],"predecessor-version":[{"id":26021,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/23160\/revisions\/26021"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=23160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=23160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=23160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}