LessThanFrequent..

My advise is based on regualr travel to India, and the fact that I used to live in Europe. A few simple guidelines:

1) Never limit yourself to one card. So ensure you have two credit/charge cards. Mainly to ensure you can pay in most places, and secondly to ensure you have enough credit available in an emergency. Therefore I suggest you obtain one Visa or MC, and Amex.

2) Ensure adequate cash access. As mentioned above, you will need to carry cash in India, in small denomination notes as well. So ensure you have an ATM card - Cirrus - has worked well for me, and there are ATMs in India (look out for ANZ Grindlays Bank).

3) Take traveler's checks. Always useful in emergency. There is no commission if you buy and encash at Amex (they make profit on the float instead). You can rarely cash a TC direct at a retailer in Europe or India.

4) Amex will give you an emergency cash advance over the counter at their offices. (The one in Delhi is in Connaught Place and took under 15 mins)

5) Now your concern over fees. All card issuers are able to charge you for converting each foreign charge into US$. They can set whatever rate they wish. This rate is however lower than buying foreign cash at an airport counter. As each issuer differs so much, I suggest you contact those relevant to you and work out who is cheaper. Ultimately you will have to pay someone.. either the card issuer, your ATM provider or the Traveler's Cheque (if you encash at hotel).

Anyhow. Enjoy your trip !