When you travel abroad, for work or just to take a break, the last thing you want is stress over handling different currencies. Carrying a forex card makes it easier. These cards have become a common choice for people who fly overseas regularly, business travelers included.
This blog covers what a forex card is, how it works, the different types, main benefits, and tips for using it for shopping or withdrawals. We’ll also look at some of the best forex cards you can find in India. The goal is simple. Keep it clear, practical, and easy to follow.
What is a Forex Card?
A Forex Card is a prepaid travel card that lets you load multiple foreign currencies and use them abroad just like a debit or credit card. It offers travelers a safe, convenient, and cost-effective way to pay for international expenses—covering shopping, dining, ATM withdrawals, and online payments—without worrying about fluctuating exchange rates or carrying cash.
A foreign exchange card, also known as a forex card. You need to load it with the currency you need before leaving. Then, you can use it abroad like a normal debit card. It saves you from carrying bundles of cash in your bag. These cards are usually given out by banks or licensed forex dealers. Since they run on big networks like Visa or Mastercard, they work at most shops, hotels, and ATMs around the world.
Using one is simple. You can pay for things in the local currency, whether it’s a hotel bill, a train ticket, or just dinner at a café. The process is no different from swiping your usual card at home. If you need cash, you can pull it from an ATM with the same card.
Security is another big reason travelers prefer forex cards. They come with a chip-and-PIN, just like your bank card, which makes them harder to misuse. If the card is lost or stolen, you can get it blocked quickly and prevent further loss. That’s a safer situation than losing a wallet full of notes. Some issuers even send out a spare card or provide emergency help if you get stuck.
One thing worth remembering is that forex cards are meant only for overseas use. An Indian-issued forex card won’t work for domestic transactions in India. They are also not valid for Nepal and Bhutan, since Indian rupees are widely accepted there as per RBI guidelines.. They are designed purely for foreign currency spending, which keeps them limited to what they’re meant for, and that is travel.
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How Does a Forex Card Work?
A forex card isn’t complicated. You get the card, load it before your trip, and then use it like a normal bank card while abroad. Loading means you pay in your local money (say INR if you’re in India) and the provider converts it to the foreign currency you choose. That balance sits on your card until you spend it. Some cards let you load just one currency, others allow several.
Once funded, you can swipe it at shops, pay online, or withdraw cash from ATMs overseas. If it’s a multi-currency forex card, the system automatically pulls money from the right wallet. With a single-currency card, everything comes from that one balance. Simple enough.
Locked Exchange Rates
One of the main attractions is the fixed exchange rate. Whatever rate you get at the time of loading stays with you for the trip. That means if you load 1,000 USD when the rate is 82 INR per dollar, you’ve locked in that cost. Later ups and downs in the market won’t touch your card balance. For travelers, this removes the stress of wondering if the currency is going to swing against them tomorrow.
Costs and Savings
Carrying a forex card usually works out cheaper than exchanging money at an airport counter. It’s also lighter on fees than international credit or debit cards, which tend to add a few percent on every transaction. Many providers keep charges low with no extra fee on swipes and only a small amount, if anything, for issuing the card. That’s why seasoned travelers see it as a cost-saving option.
Adding More Money
If you run out of balance mid-trip, topping up isn’t a hassle. Most banks and issuers let you reload online using internet banking or a mobile app. In some cases, a family member back home can add funds for you if they’re authorized. In India, the Reserve Bank sets a yearly cap of USD 250,000 (or equivalent) for foreign exchange, and forex cards are covered under that rule.
After the Trip
What happens if money is left over? You don’t lose it. You can unload the card, which converts the remaining currency back to your local money and credits it to your bank account. Some travelers prefer to just leave the balance on the card for their next trip.
Types of Forex Cards
Forex cards come in different types, depending on what kind of trip you’re taking. The two main ones are:
Single-Currency Forex Cards
This type holds just one foreign currency. Say you load it with US Dollars. It works fine if you’re only visiting the United States or another dollar-using region. You can still use it elsewhere, but the moment you pay in a different currency, the bank adds a cross-currency fee. It’s simple, but if you’re moving across countries, it gets limiting and usually a bit more expensive.
Multi-Currency Forex Cards
These are more flexible. A single card can carry USD, EUR, GBP, JPY, AED, and several others at the same time. Before leaving, you can load the currencies you’ll need. When you spend abroad, the card automatically picks the right wallet, so you don’t lose money to extra conversions. If one balance is empty, some cards switch to another currency wallet with only a small charge. They suit travelers covering more than one country or people who fly frequently.
Other Options
Some cards are made for students, premium travelers, or bundled with travel packages. They sometimes come with extras such as travel insurance, reward points, or even an international SIM card.
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Benefits of Using a Forex Card
Travelers abroad usually want the simplest way to manage money. That’s where forex cards have caught on. You don’t have to stand in line at an exchange counter or worry about carrying too much cash in your bag. The card is already loaded with the local currency, so when you land, you can pay for a cab, check in at the hotel, or shop at a mall without thinking twice.
Security and Peace of Mind
A forex card has a chip-and-PIN setup that makes it far harder for anyone else to use. If it goes missing, you can block it almost instantly. Many providers even send a spare card in the starter kit, so you’re not left stranded. That kind of safety net is hard to get when you’re holding on to bundles of foreign notes, and once cash is lost, that’s it.
Savings on Transactions
Anyone who has used a normal card abroad knows how quickly fees add up. A swipe can cost 2 to 3.5 percent in foreign charges, and the conversion rates aren’t always kind. Forex cards fix that problem. The rate is locked on the day you load the money. If the dollar, pound, or euro moves up during your stay, it won’t affect you. Locking in a good rate before travel can save quite a bit over time.
Multi-Currency Support
Not every trip is limited to one country. You may have meetings in London, then Paris, then Dubai, all in a single schedule. Instead of juggling different wallets or worrying about conversions every few days, you can load multiple currencies on one card. It makes life easier when moving across borders.
Staying on Budget
Forex cards are prepaid cards, which means you spend only what you put in. That simple limit makes it easier to track your money. Issuers usually offer apps or online dashboards that show real-time balances. You’ll also get text or email alerts with each payment, which keeps your spending clear. For anyone filing work expenses, downloading a statement at the end of the trip is a huge help.
Reload Options
Running out of cash in another country can be stressful. With a forex card, money can be added online. It’s quick, sometimes just a few hours, and someone at home can even reload it for you. These reloadable forex card usually works for several years, so you don’t need to apply for a new one each time you travel.
Extra Benefits
Some cards go beyond the basics. They may include lounge access at airports, travel insurance, reward points, or dining and shopping discounts. These extras might not seem like much, but together they add comfort and value to your trips.
Read More: How Reloadable Prepaid Cards Help Businesses Simplify Payments & Expense Tracking
How to Get a Forex Card in India
Applying for a forex card in India isn’t complicated, though you’ll want to plan a little before starting. The first decision is choosing where to get it from. Big names like HDFC, ICICI, SBI, Axis, and Kotak all have their own versions, while some fintech firms and travel companies pitch competitive forex card offers with lower fees or better currency rates. If you travel often or have stops in multiple countries, a multi-currency card makes sense. For a single trip to one destination, sticking to a single-currency card usually works out cheaper and less of a hassle.
Once you’ve picked the card, applying is fairly straightforward. Many banks now let you do the whole thing online. Fill out the form, upload your papers, and wait for delivery at home. If you’re short on time, walking into a branch is faster. Some banks even issue “instant” forex cards at the counter, loaded with money the same day.
The paperwork is routine. You’ll be asked for your passport, the visa for the country you’re visiting, a confirmed flight ticket, and your PAN card. Depending on the bank, they may also want an extra proof of ID or address. These checks are required since forex cards are regulated under the Reserve Bank of India’s foreign exchange rules.
After your application is cleared, the next step is funding the card. You pay in Indian rupees, which the bank converts into the foreign currency at the current rate before loading it on. The payment can be made through net banking, direct debit, or even UPI with some issuers.
When the process is complete, you’ll receive a kit. Inside is the card, a PIN or instructions to create one, and in some cases, a backup card. Activation is quick, and once done, you can start using it abroad. Most providers also give you access to a web portal or app, handy for topping up, checking your balance, and keeping track of your spending while you travel.
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Using a Forex Card Abroad
Using a forex card while traveling is simple enough, but a few good habits will make sure you get the most out of it.
In shops or restaurants, you use it just like your bank card at home. Swipe, insert, or tap, then key in your PIN, and you’re done. In many countries, tap-and-pay has become the norm for smaller bills, so it’s quick and saves fumbling for change.
ATMs work the same way. If the machine carries the Visa or Mastercard logo, or whatever network your card runs on, you’re good to go. Insert the card, enter your PIN, and withdraw cash in the local currency. Just remember that a fee may apply, sometimes from your card provider and sometimes from the ATM operator. To cut down on charges, take out a larger amount once rather than making several small withdrawals. And when the screen asks whether to charge you in INR or the local currency, pick local. Choosing INR triggers what’s called dynamic currency conversion, which usually means you get a worse rate.
The card also comes in handy online. Whether you’re reserving a hotel room, buying train tickets, or paying for a subscription abroad, it works like any other debit card. Some issuers add an extra layer of protection with OTP or 3D secure codes, so your details stay safe.
Keeping an eye on your balance is straightforward. Most cards link to a mobile app or website where you can reload funds, switch between currencies, or just check how much is left. You’ll usually get an SMS or email alert after each transaction, too, which makes tracking expenses much easier while you’re on the move.
Read more: What Is a Prepaid Non-Reloadable Card? Meaning, Benefits & Best Use Cases
Forex Card vs Other Payment Options
When you’re traveling abroad, there are several ways to carry money, cash, cards, or even old-school travelers’ cheques. Some options are practical in small doses, but each has its limits. Here’s how they stack up.
Cash
Cash feels straightforward, but it’s also risky. If you misplace it or it gets stolen, there’s no getting it back. On top of that, exchanging currency at airports usually means poor rates and heavy service charges. Keeping a bit of cash for tips, taxis, or small purchases makes sense, but relying on it alone isn’t safe or cost-friendly.
Credit Cards
Cards are easy to swipe and sometimes earn you reward points. The problem is the charges. Most Indian credit cards add around 3 to 3.5 percent on overseas transactions, along with taxes. Pulling out cash from an ATM with a credit card costs even more, since banks treat it like a cash advance, and interest starts from day one.
Debit Cards
Your regular debit card works abroad, but the costs are nearly the same as credit cards. Each purchase or withdrawal attracts a foreign markup, and banks may block transactions if they look unusual. That can leave you stuck if you haven’t planned a backup.
Travelers’ Cheques
These were popular years ago, but not anymore. Very few places accept them, and finding a bank to cash them can take time. For most people, they’ve become more of a hassle than help.
Forex Cards
Forex cards solve many of these problems. You can load them with the currency you need before leaving, which protects you from sudden rate changes. They don’t touch your main bank account or credit line, and they’re accepted in shops, hotels, and ATMs across the world. In short, they combine safety, convenience, and better value than the other options.
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Common Fees and Charges on Forex Cards
Forex cards save money compared to swiping a debit or credit card abroad, but they’re not completely free. Banks and issuers build in certain fees, and if you don’t know them in advance, the small charges can eat into your savings. Here’s a breakdown in plain terms.
Issuance Fee
Most providers ask for a one-time fee when you first get the card. It can be anywhere from ₹100 to ₹500. Some waive it if you load a minimum balance or during special offers. Fintech companies, eager to attract users, sometimes scrap this fee altogether.
Reload Fee
Adding more money to the card isn’t always free. Each reload usually costs ₹50 to ₹100. For someone who travels often, this fee adds up faster than expected. That’s why many people prefer online forex platforms that advertise “no reload charges.”
ATM Withdrawals
Taking cash out abroad is handy, but it comes at a price. Banks usually charge around $2 to $3 per transaction, regardless of how much you withdraw. On top of that, the foreign ATM itself may add its own surcharge. To cut back, it’s smarter to withdraw a larger amount in one go rather than making frequent small withdrawals.
Cross-Currency Conversion
If you end up paying in a currency that you didn’t load, the bank converts it from another wallet on the card. That conversion comes with a markup, usually 2% to 3.5% of the amount. Multi-currency cards help avoid this issue because you can load the exact currencies you’ll need before you travel.
Inactivity Charges
Leave the card unused for six months to a year, and some issuers start deducting a dormancy fee. It might be a flat monthly cut until you either use the card again or unload the balance.
Balance Check Fee
Even checking your balance at an ATM abroad can cost you. Most issuers charge between $0.50 and $1 per enquiry. A better option is to check through the card’s mobile app or web portal, which is usually free.
Replacement and Unloading Fees
Losing your card overseas can mean paying for a replacement. And when you return home and transfer the leftover balance to your bank account, some issuers deduct ₹100 to ₹200 as an unloading fee.
Why This Matters
For someone who travels often, these small charges add up and reduce the actual benefit of using a forex card. Comparing options before applying makes a big difference. The most cost-friendly card will be one with little to no reload fees, low withdrawal costs, and no inactivity charges. That way, the locked-in exchange rates actually save money instead of being cancelled out by hidden fees.
Read More: Travel and Entertainment Prepaid Cards in India: All You Need to Know.
Conclusion
Forex cards have changed how people deal with money while traveling. Instead of carrying a stack of cash or paying high charges on regular cards, these prepaid international travel cards give you a safer and usually cheaper way to spend abroad. For someone on business trips, it also means you don’t have to keep worrying about expenses. You set a budget, avoid surprise charges, and get on with your meetings without lining up at currency counters.
In India, there are plenty of choices. Banks generally issue them, and so do some fintech companies that advertise zero markup. The smart approach is to check the features, charges, and supported currencies before you pick one. When applying, you’ll usually need your passport, visa, tickets, and PAN card, along with signing off on usage rules.
Once you have the card, traveling gets simpler. You don’t have to hunt down money changers or worry about exchange rates every other day. Paying abroad feels as easy as using your card at home. For both holidays and work trips, it takes away a lot of stress. Instead of focusing on money, you can focus on the trip itself. A forex card may look like a small detail, but it can make your entire journey smoother.
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