Ready for your international trip? Now that you’ve chosen your destination, it’s time to decide how to carry foreign currency. The most common options are Forex cards and currency notes. But which one is better for your trip? Let’s dig deep into each option and identify the easiest and cheapest way to manage your forex.
Forex Card
- A Forex Card, also known as a travel card or prepaid foreign exchange card, is a prepaid card loaded with foreign currency.
- A single-currency forex card can only be loaded with US Dollars, while a multi-currency forex card can hold up to 10 currencies for various travel destinations.
- Once the currency is loaded, the exchange rate is locked to cover you from rate fluctuations.
- Forex cards are accepted worldwide, and you can use them to pay for purchases or withdraw cash from ATMs.
| Advantages | Disadvantages |
| Safety– Forex cards have a PIN for security. If lost or stolen, you can block the card and use the spare card. (A spare card shall only be provided on request.) | Fees- Some forex cards come with ATM withdrawal and cross-conversion fees (depending on the type of card and currency uploaded) |
| Convenience- In addition to the convenience of carrying a large sum lightly, you can easily load it online without searching for an exchange centre while travelling. | Limited Acceptance- Might not be accepted in smaller establishments or rural locations. |
| Better Exchange Rates- You can buy Forex cards at cheaper exchange rates than currency. | National Restrictions- Not accepted in a few countries that face political instability and economic sanctions. |
| Online Access- Monitor your spending using the card provider’s app or online platform. | Transaction Limit – Forex cards often have predefined however reasonable daily transaction and withdrawal limits. |
Forex Card Charges
| Charges | Amount or Percentage Charged |
| Cross-conversion fee (multi-currency card only) | 4.5% |
| ATM withdrawal fee (multi-currency card) | USD 2 – USD 3 |
| ATM withdrawal fee (single-currency card) | USD 5 |
Forex Card Transaction Limits
| Type of Transaction | Daily Transaction Limit |
| ATM withdrawal | USD 1500 |
| Swipe payment and online purchases from foreign websites | USD 15,000 |
| Contact-less payment | USD 35 |
Pro Tip: Banks usually charge loading and reloading fees for their Forex cards. So it is better to go for online forex service providers like ExTravelMoney who do not charge any activation or loading fees.
Foreign Currency Notes
- Currency notes refer to physical cash in the foreign currency of the country you are visiting.
- You can exchange Indian Rupees for foreign currency at a currency exchange store, bank, or online forex portal before your trip.
| Advantages | Disadvantages |
| Universal Acceptance- Widely accepted, making them incredibly useful in remote areas and shops that might not support card payments. | Inconvenience- Carrying large amounts of cash can be cumbersome and unsafe. Also, it is tiresome to search for an exchange vendor to purchase currency while travelling. |
| No Fees- Unlike Forex cards, cash does not have any charges. | Chances for Scam- Currency from unauthorised centres can often be counterfeited. |
No Technical Glitches- Cash doesn’t rely on technology, so you never have to worry about facing connectivity issues, when paying. | Poor Exchange Rates- Exchange counters at airports often offer poor exchange rates. Also, if the currency is rare to obtain, you shall be charged a service fee in India. |
Also Read: How Much Cash Can a Traveller Take In and Out of India?
Which Option is Better for Your Trip?
By the analysis, you might have come to an understanding that even though the advantages of forex cards are more, both are essential. The choice between Forex cards and currency notes largely depends on the nature of your trip and destination country:
Short-Term Travel: A Forex card is a convenient and secure option for major transactions. However, carrying a small amount of cash for emergencies is advisable. So it is best to follow a 70:30 ratio.
Long-Term Travel: For longer trips, you can rely more on Forex cards, especially if you are travelling across multiple countries. You can load different currencies onto a multi-currency Forex card and spend easily by following the 70:30 ratio.
Developed Countries: If you are travelling to countries where card payments are common, a Forex card is more convenient. Load 70% of currency in a forex card and the rest 30% as cash for emergencies.
Developing or Remote Areas: Cash might still be king in such countries. Small markets or local businesses may only accept cash, so it’s wise to carry half of your budget as currency notes. Upload the rest half to a Forex card and withdraw it periodically from an ATM when needed.
Tips on Using Forex Cards and Currency Notes
In many cases, the best approach is to use both Forex cards and currency notes together:
Forex Card for Major Expenses: Use your Forex card for the final settlement of hotel bills, dining, shopping, and other larger expenses where card payments are accepted.
Currency Notes for Emergencies & Small Purchases: Keep cash for situations where cards aren’t accepted or for tips and small purchases at local markets.
The right mix of Forex cards and currency notes depends on your travel plans, but what remains constant is the need for reliable Forex services. ExTravelMoney ensures you get the best exchange rates and convenient solutions, making your international trips smoother and more cost-effective.
Also Read: Comparison of Forex Card vs Credit Card, Debit Card, and Cash
Ann Mariya Job is the Associate Content Writer at ExTravelMoney.com. Holding a Bachelor’s in Journalism, she excels in creating deeply researched, engaging, and crisp content. Her work helps readers understand the complexities of foreign exchange, overseas money transfers, and international travel.