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
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:
- Load money (in Rupees) into the card through your bank or provider
- The INR is converted into foreign currency (USD, EUR, GBP, etc.)
- You can then use the card like a debit card abroad
- 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)
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:
- Provide PAN card and proof of travel
- Submit KYC documents
- Load funds in INR
- 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
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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