Yes Bank will apply a 2 percent foreign-currency markup on Marquee Visa card loads and wallet conversions starting 1 November, a change that raises the effective cost of overseas spending for customers who keep rupee balances on premium travel products.
What changes on the card
Emails sent to Marquee Visa holders on Monday said the bank will align cross-currency fees with revised Reserve Bank guidance on disclosure of levies on international transactions. Purchases billed in dollars, euros or dirhams will continue to route through Visa's network, but the rupee debit will include the new markup unless the transaction qualifies for a promotional waiver.
Yes Bank kept complimentary lounge visits intact for the current programme year but removed a temporary waiver that had capped markup at 1.5 percent during the summer travel season. Cardholders who stack airline miles said the shift pushes them back toward either direct foreign-currency accounts or competitor products that still advertise sub-2 percent pricing on select co-brands.
Why issuers are resetting now
The rupee's slide toward 95 to the dollar and elevated oil prices have increased hedging costs for banks that fund international spend from domestic deposits. Issuers also face tighter interchange economics on contactless payments after the NPCI pushed uniform merchant discount rate reporting for aggregators this quarter.
Private bankers said premium cards remain profitable only when foreign-exchange income offsets reward liabilities. Yes Bank, which returned to steady profitability after its 2020 restructuring, is signalling it will not subsidise travel perks indefinitely.
How customers can respond
Frequent flyers can still load foreign currency on dedicated multi-currency cards from HDFC Bank, ICICI Bank or fintech partners, comparing all-in spreads rather than headline reward rates. Marquee customers travelling during Diwali were advised to complete large hotel deposits before the November effective date if their existing fee schedule still shows the lower markup.
For UPI users, international acceptance remains limited compared with Visa rails; the Marquee change therefore matters most to households that rely on a single premium plastic card abroad.
Competitive context
Axis Bank and SBI Card have tweaked lounge and cashback caps on festive co-brands in recent weeks, but Yes Bank's move is among the first explicit foreign-currency repricings this quarter. Analysts said more issuers could follow if the rupee stays under pressure through the New Zealand cricket tour and year-end corporate travel season.
Regulators have not capped FX markups, focusing instead on transparent display at the point of consent. Yes Bank's notice includes worked examples in rupees for a $100 online purchase, a format the RBI has encouraged since its 2025 consumer-awareness circular.
Bottom line for wallets
Marquee Visa remains a high-limit product with golf and concierge benefits, yet the economics of overseas use are narrowing. Cardholders should treat the 2 percent levy as the baseline when comparing effective reward yields, especially on categories where bonus points do not multiply on international MCC codes.