Glossary

Forex Card: What It Is, Benefits, Charges & FAQs

By Jupiter Team · · 4 min read

Whether you're a student heading to the UK, a tourist vacationing in Europe, or a business traveler attending meetings in the US, carrying a prepaid forex card can help you manage your travel money securely and efficiently.

Let’s explore what a forex card is, how it works, its benefits, charges, and answers to the most common questions.

What Is a Forex Card?

A forex card (foreign exchange card) is a prepaid travel card loaded with one or more foreign currencies. Issued by Indian banks or fintech platforms, it works like a debit card when you’re abroad, enabling ATM withdrawals, in-store payments, and online transactions in local currencies.

This means that travelers can:

  • Avoid high forex markup fees on credit/debit cards
  • Lock in exchange rates in advance
  • Spend securely without carrying large amounts of cash

‘Forex Card’ in some of the Indian languages

Language

Term

Explanation

Hindi

फॉरेक्स कार्ड

विदेश यात्रा के लिए उपयोग किया जाने वाला प्रीपेड कार्ड

Marathi

फॉरेक्स कार्ड

परदेश प्रवासासाठी वापरला जाणारा प्रीपेड कार्ड

Tamil

வெளிநாட்டு பரிமாற்ற அட்டை

வெளிநாட்டுப் பயணிகளுக்கான முன்பணம் அடங்கிய அட்டை

Kannada

ವಿದೇಶಿ ವಿನಿಮಯ ಕಾರ್ಡ್

ವಿದೇಶ ಪ್ರಯಾಣದ ಪ್ರಿಪೇಯ್ಡ್ ಕಾರ್ಡ್

Bengali

বিদেশি মুদ্রা কার্ড

বিদেশে ভ্রমণের সময় ব্যবহৃত প্রিপেইড কার্ড

Gujarati

ફોરેક્સ કાર્ડ

વિદેશ પ્રવાસ માટે ઉપયોગમાં લેવાતો પ્રીપેઇડ કાર્ડ

Telugu

ఫారెక్స్ కార్డ్

విదేశీ యాత్రలకు ఉపయోగించే ప్రీపెయిడ్ కార్డ్

Malayalam

ഫോറൻ എക്‌സ്‌ചേഞ്ച് കാർഡ്

വിദേശ യാത്രക്കായി ഉപയോഗിക്കുന്ന പ്രീപെയ്ഡ് കാർഡ്

How to explain ‘Forex Card’ to kids?

Think of a forex card as a travel wallet or a purse loaded in foreign currency like Dollars, Yen, Euros, etc.. Before going abroad, you load money in Indian Rupees or Dollars onto it. While traveling, you use it like a debit card. It’s safer than cash and cheaper than swiping your Indian credit card.

How Does a Forex Card Work?

Here’s how it functions:

  1. Load money (in Rupees) into the card through your bank or provider
  2. The INR is converted into foreign currency (USD, EUR, GBP, etc.)
  3. You can then use the card like a debit card abroad
  4. Unused balance can be refunded or reloaded

When and Where to Use a Forex Card?

  • International ATMs (for cash withdrawals)
  • POS terminals abroad (restaurants, shopping, etc.)
  • Online purchases on foreign websites

Types of Forex Cards (Single vs Multi-currency)

  • Single Currency Forex Card: Loaded with one currency (e.g., USD only)
  • Multi-Currency Forex Card: Supports multiple currencies in a single card (e.g., USD, EUR, GBP)

Multi-currency cards are ideal for multi-country travel or international students.

Forex Card vs Credit/Debit Card for Travel

Comparison Table: Forex Card vs Credit Card vs Debit Card (International Use)

Feature

Forex Card

Credit Card

Debit Card

Forex Markup Fees

0–2% (can be zero)

2.5%–3.5%

2.5%–3.5%

Currency Conversion

Preloaded at fixed rate

Dynamic at time of use

Dynamic at time of use

ATM Withdrawals

Allowed (with fees)

Allowed (high fees)

Allowed (high fees)

Risk of Fraud

Low (not linked to account)

Medium

High (linked to savings)

Ideal For

Budget travelers, students

Emergency expenses

Backup option


How to Apply for a Forex Card in India

You can apply for a forex card through:

  • Banks like HDFC, ICICI, Axis Bank, SBI
  • Online platforms like BookMyForex, Niyo Global, Wise

Steps to apply:

  1. Provide PAN card and proof of travel
  2. Submit KYC documents
  3. Load funds in INR
  4. Receive the card by post or collect at branch

Is a PAN Card Necessary for a Forex Card?

Yes, a PAN card is mandatory under RBI and FEMA regulations for issuing forex cards in India. It helps verify your identity and monitor international fund transfers under LRS (Liberalised Remittance Scheme).

Disadvantages of a Forex Card

While highly convenient, there are some limitations:

  • Hidden charges like ATM fees or reload charges
  • Not usable in India for domestic transactions
  • Limited acceptance at some merchant outlets
  • Loss or theft may delay access to funds (unless emergency cash is arranged)

What Are Forex Conversion Charges?

Forex conversion charges refer to the fee applied when currency conversion takes place. In forex cards:

  • Conversion happens once—when you load the currency
  • You save on per-transaction charges typical in debit/credit cards

Tip: Always ask your provider about reload charges, inactivity fees, and balance refund fees.

Forex Card Fees and Markup Charges

  • Issuance fee: ₹100–₹500
  • Reload fee: ₹100–₹200
  • ATM withdrawal fee: $2–$3 per transaction
  • Cross-currency markup: 2–3% (for unsupported currencies)

What Is a Zero Forex Card?

A zero forex card charges 0% foreign transaction fees, even when used across multiple countries. These are ideal for frequent flyers or students abroad who want full cost control.

Prepaid Forex Card vs Forex Credit Card

Feature

Prepaid Forex Card

Forex Credit Card

Type

Prepaid, reloadable

Credit line-based

Currency

Loaded in advance

Converted during transaction

Forex Markup

Low or zero

1%–3.5% typically

EMI & Credit Score

Not applicable

Affects credit score

Ideal For

Students, tourists

Business travelers, luxury spenders


Forex Card for Students Studying Abroad

Students going to the UK, US, Canada, or Australia often use:

  • Multi-currency forex cards
  • Student forex cards with benefits like lower reload charges, insurance, and online usage

FAQs on Forex Cards

Q1. What is a forex card?

A forex card is a prepaid card used to pay in foreign currency while traveling abroad. It offers better exchange rates and helps avoid foreign transaction charges.

Q2. What are the disadvantages of a forex card?

Some forex cards have hidden fees, ATM withdrawal charges, or don’t support refunds if the card is lost.

Q3. Is a PAN card necessary for getting a forex card in India?

Yes, a PAN card is typically required as part of the KYC process when applying for a forex card.

Q4. What is a zero forex card?

A zero forex card is a card that charges no foreign currency markup on international transactions. This is ideal for frequent international travelers.

Q5. What’s the difference between a prepaid forex card and a forex credit card?

A prepaid forex card is loaded with foreign currency in advance, while a forex credit card is a standard credit card with reduced forex markup.

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