Planning your first trip abroad? Whether it is a holiday in Dubai or you’re going to Europe for studies, you might be wondering how to carry your money safely.
Should you carry cash? Use your Indian credit card? Or get a Forex Card? But what is a Forex card?
A Forex Card, also known as a Travel Card or a Prepaid Currency Card, is a reloadable prepaid travel card used to carry and spend foreign currency when travelling abroad. It is a prepaid card that you "load" with foreign currency (like Dollars, Euros, or Dirhams) before you leave India.
A Forex Card works just like a debit or credit card. You can use it to withdraw money from ATMs, swipe for payments, or book hotels and tickets in another country. It eliminates the need for currency exchange and reduces the risk of carrying cash.
Here is the simple 3-step process:
You pay in Indian Rupees (INR) to buy the foreign currency of your choice at the current exchange rate.
The exchange rate is "locked" the moment you load the card. Even if the rate goes up tomorrow, your money is safe.
Use the card at hotels, restaurants, or malls abroad without any extra "conversion" worries.
Get instant SMS or email alerts after every payment.
Need more money? Reload the card online anytime through internet banking.
Forex cards come in two varieties -
This type of Forex card can be loaded with only one currency type. It is suitable for you if you are visiting just one country.
This type of Forex card is versatile and can carry multiple currencies at once. It is suitable for you if you are traveling to various destinations.
This is perfect for you if you’re planning a Europe tour. You can load several currencies (Euro, Pound, Swiss Franc) onto one single card.
Still confused about how a Forex card compares to your regular credit card or cash? Here is a short comparison table to help you understand which is a better option based on your specific needs -
|
Feature |
Forex Card |
Credit Card |
Cash |
|---|---|---|---|
|
Exchange Rate |
Locked-in (Fixed) |
Fluctuates daily |
Significantly higher |
|
Currency Conversion Fee |
Zero to Low |
2% to 5% per swipe |
Very High |
|
Safety |
High (Chip & PIN protected) |
Medium |
Low (Risk of theft) |
|
ATM Withdrawals |
Low fixed fee |
High interest + Fee |
Not applicable |
|
Reload Options |
Yes, anytime online |
Not applicable |
Not applicable |
|
Refund Options |
Yes, can encash after the trip |
No |
Not applicable |
|
Best For |
Frequent or long-term travelers for budgeting & daily spends |
Emergency backup or occasional use |
Small tips/taxis |
Here are the three ways you can use your Forex card when you are out of your country -
Just swipe or "tap" at the POS machine. Enter your PIN if asked.
Select the "Checking" or "Credit" option (depending on the card provider's instructions) and withdraw local cash.
Use it for booking local train tickets or museum entries just like an Indian debit card.
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Once you return to India, you have the following options -
Encash the remaining balance and transfer it back to your savings account, or
Keep the card active for your next trip (valid for up to 3 to 5 years, depending on the provider).
A Forex card has multiple benefits and helps you to travel hassle-free without worrying about cash and cheques. Here are some top benefits of using a Forex card -
Enjoy lower currency conversion fees as compared to Debit/Credit cards.
No effect of fluctuating currency rates after loading money.
Can be used globally across ATMs and Point of Sales.
Chip and PIN protection makes it safer than carrying cash. You also have options for emergency and card replacement if the card is lost or stolen
Since it is prepaid, you only spend what you have loaded. No "bill shock" after you return home!
Easy tracking and reloading of multiple currencies. Also supports multiple currencies on one card for global trips
Getting a Forex card is simple. You just need:
A Valid Passport
Confirmed Air Ticket (or Visa)
PAN Card
A Small Application Form (usually available on the provider's app or website)
To apply for a Forex Card, you’ll need to submit the following documents -
Signed application form
Valid Passport
Valid Visa (if applicable)
PAN Card
Aadhaar Card (for KYC verification)
Air Ticket (for travel proof)
Documents may vary based on your bank or Forex provider. Please check with the authorities before applying.
Forex Cards are available through all major Indian banks and authorized Forex providers. You can check with your nationalized bank too. Here are some examples of Forex card providers -
BookMyForex, Thomas Cook, and others
You can apply online or visit a branch, fill out the application, submit documents, and get your card issued quickly.
There are some hidden fees related to all cards. Here are the ones your Forex card might have. Make sure you check these with your card provider -
|
Type of Fee |
Description |
|---|---|
|
Issuance Fee |
It is a one-time fee to get the card. It may vary between ₹100 and ₹500. |
|
ATM Withdrawal Fee |
A small fixed fee (e.g., $2) every time you take out cash. |
|
Inactivity Fee |
Charged only if you don’t use the card for more than 6–12 months. |
|
Cross-Currency Fee |
Charged only if you use a "Dollar" card in a country that uses "Euros." |
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Be it the bustling markets of Bangkok or the serene landscapes of Switzerland, your Forex card is your perfect travel partner. Given that it is easy to use, secure, and cost-effective, it is the smart way to carry money abroad.
Here are some more tips for you to use Forex cards -
Always check the exchange rate before loading funds.
Keep a backup card or emergency cash handy.
Inform your bank if you lose your card to prevent misuse.
Avoid swiping your Forex Card in India; it’s meant for international use only.
To get one, simply apply through your bank or an authorized Forex provider, load the card with your travel currency, and enjoy a stress-free international trip. Just read the terms, conditions, and fees related to all available cards before choosing one.
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This article is for informational purposes only and does not constitute financial or legal advice. Always consult with your financial advisor for specific guidance.
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