While on a foreign trip, using credit and debit cards are convenient, but these come at a cost. If you use your debit card to withdraw at an ATM, the bank will levy a service charge of $3 or Rs 148 on the transaction.

Credit cards work out to be more expensive than a debit card. Each time you swipe your card, the swiped amount is converted, depending on the prevailing exchange rate. But this conversion comes with a 2-3.5 % mark-up, besides a service tax of 10.3 per cent on the fee. So, say you spend Rs 1 lakh, the conversion fee would be Rs 2,000-3,500. In addition, the service tax would be Rs 206-360. The total expense = Rs 1,02,206-1,03,860.

Besides, there is also a maximum limit to credit card usage and, in case you do not pay your bill, the normal penalty rates of additional 2.95 per cent a month will be charged on the balance payable. Menon advises checking out the card services and thier usage fees before leaving the country. Carrying more than one credit card can help. In case of theft, the credit card issuer needs to be contacted and informed to block its usage.

Withdrawal of cash through credit cards is a strict no-no, as this will double the damage. One, there will be an interest rate of three per cent. Second, there will be a conversion cost of 2-3.5 per cent, along with the service tax. Third, there will be a flat fee of Rs 300. On the whole, you end up paying seven-eight per cent on your withdrawal.