Purchasing order from foreign countries which are foreign currencies

POSTED BY Peter Manoj ON May 17, 2012 1:44 am COMMENTS (7)

I read about the credit card myths, well explained Manish & team. Now consider if i purchase any product say from European countries and the mode of payment offered by them is Credit card.
1. What are the things i’ve to be caution & checked before doing a CC transaction?
2. How this process happens(currency conversion example EURO ->INR) and what are the pros & cons involved?
3. Kindly recommend which is best for online purchasing, Credit card–Paypal–wiretransfer or any?

A situation question
4. Example if product order pricing is 800Euro (then 56,000INR)
a. situation: what if my credit card limit is upto 50,000INR how can i afford to remaining 6,000INR payment?
b. Credit card can be extended, if so how?
c. What are the alternatives to make this payment simpler?

Kindly help out resolving the above many thanks Manish & team.
Thanks my friend Prem for redirecting through FB.

7 replies on this article “Purchasing order from foreign countries which are foreign currencies”

  1. Peter Manoj says:

    Many thanks Jagon team & Ashal, i was able to understand the credit card & CC charges during our discussion was helpful & crucial to know.

    I’m happy to inform that my order is placed & transaction has passed. Successful credit card transaction from India to Foreign country. 🙂

    Peter Manoj

  2. Peter Manoj says:

    Yes Ashal, I’m procuring the product for my project so only im rushing to buy. As of now i dont have an option. Can you suggest me an options/best move?

    Expecting your suggestions


  3. Peter Manoj says:

    Thanks Ashal,
    I read their T&C infact asked the Sales person about payment procedure wherein he replied,
    “You could buy through e-mailing me.
    Then we have three available payment methods:

    * Wire transfer –> 1% bank charges with minimum of 20 Euros. I would give you our bank data.
    * Credit card –> 1% bank charges without minimum. I would send you by email a form for you to fill out and re-send to me.
    * PayPal –> 3% bank charges without minimum. I would give you our PayPal account.

    Taxes to India are Zero since it would be an exportation.”

    Kindly validate whether im on correct doing or not…

    The credit history is good so i could extend the limit for the same.

    Awaiting your response

    Thanks & Regards

    1. Dear Peter, what about that currency conversion loading by your CC? So in effect you ‘ll be paying around 7% more if you opt to pay through pay pal.

      May I know which bank’s CC are you using?



      1. Peter Manoj says:

        Thanks Ashal,
        Unfortunately i cant extend my CC limit because of my pay the bank replied.

        Having discussed with my friend who can pay more decided to offer his HDFC CC to do the payment for me.

        We called to the customer care for currency conversion details; HDFC replied,”from INR to Euro would add some charges depending on percentage of total amount to be paid” if 500Euro then 30Euro for currency conversion charges. Thus 530Euro as total amount to be paid.

        4% currency conversion for HDFC’s (i.e INR to Euro)
        *1% bank charges without minimum refers to the Product Vendor’s Bank charges(Above reply)

        kindly validate above statement and approach of buy thru friend.

        Kindly brief the online Credit card transaction process-in which how the pay holder would know the transaction is taking place…

        They don’t have a Product distributor in India. 🙁 so only taking such risk.


        1. Dear Peter, please purchase at your own risk now. All that I can say. Please do note, now a days Rs. is falling day by day & hence your actual pay out in Rs. terms ‘ll be more than what you have anticipated till now.



  4. Dear Peter, Please do not use CCs for such transactions for the fact that currency conversion charges are very high. Please read the T & C booklet supplied with your CC to you for the transactions done in currencies other than Indian one.

    For that 56K thing, the net outgo for you ‘ll be more due to impact of currency conversion charges. Normally it’s 3.5% loading above the currency rate (please contact customer care of your CC & check there). If your credit history is good, your CC provider may enhance your limit temporarily on your request. Flip side is – it may impose fines for over limit transactions.

    Almost all things are available now in India. Please search on net & you ‘ll be able to locate the Indian office of the agent or distributor or importer of the object you want to purchase outside India.

    Although I have not used for myself but Paypal is a better option.



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