Travelling abroad is exciting, but managing foreign currency can sometimes be confusing. Use Forex Cards – the perfect solution for Indian travellers looking for convenience, security, and savings. Whether shopping online, swiping at restaurants, or withdrawing cash abroad, Forex cards are an ultimate travel companion. In this blog, we’ll explore everything you need to know about using Forex cards effectively and economically. Let’s dive in!
Also Read: Forex Card or Cash Which is Best for International Trip?
What is a Forex Card and How Does It Work?
A Forex card is a prepaid card that allows you to carry foreign currency conveniently and safely while travelling abroad. A RBI-authorised Forex provider or a bank issues the card. A traveller can upload US Dollars in a single-currency Forex card or load up to 12 different foreign currencies in a multi-currency Forex card without incurring currency conversion charges during international transactions. You can use it for online purchases, ATM withdrawals and swiping or tapping at point-of-sale (PoS) terminals.
How to Load Foreign Currency in a Forex Card
- Select Forex card type and currency
Before travel, choose between a single-currency or multi-currency forex card based on your number of travel destinations. Additionally, select the currencies and the amount to load onto the card. Later, place order on an online forex platform like ExTravelMoney.
- Upload documents
To comply with KYC (Know Your Customer) and LRS (Liberalised Remittance Scheme) government regulations, upload soft copies of identity and purpose proofs. Required documents include a passport, PAN card, travel tickets, and documents proving the purpose of travel.
- Send required amount
To load money onto a Forex card, transfer the required amount in Indian Rupees to the card provider. If you are travelling for tourism purposes, be sure to send this amount from your own bank account. For travellers going abroad for education, the money can be transferred from your or your parent’s account.
- Collect forex card
A Visa or MasterCard forex card shall be issued spontaneously at the time of money transfer.
- Card gets activated
It takes around 4 to 5 hours for the Forex card to get activated and load the desired foreign currency/ies. The currency exchange rate is locked and protected against further rate fluctuations until unloading.
Also Read: Forex Cards, The Best way For Students To Carry Money Abroad
How to Reload a Forex Card with Currency
- Place Order
Contact or visit your card provider’s website. Request the currency and amount required.
- Send required amount
Make a bank transfer to the card provider in Indian Rupees according to the prevalent exchange rate. Tourists must transfer the amount from their account whereas parents must send money on behalf of international students.
- Currency gets reloaded
Your forex card shall be credited with the requested amount of foreign currency within 4 to 24 hours.
Reminder: Travellers who went abroad for employment or immigration cannot reload their Forex cards. However, students are allowed to reload their cards only during the duration of their course.
How to Unload and Withdraw Money from a Forex Card
- Place Order
Contact or visit your card provider’s website. In the case of ExTravelMoney, select the ‘sell forex card’ option. The card need not be submitted for unloading.
- Amount gets credited to bank account
The excess foreign currency in your forex card shall then be unloaded by the card provider and credited to your bank immediately according to the prevalent exchange rate.
Pro Tip: It is not mandatory to encash the remaining currency in your Forex card or return empty cards to the card provider. You can also reload the card for future international trips and use it within its validity period.
Using Your Forex Card Abroad
Online Purchases
Forex Cards allow you to make seamless online payments in foreign currencies while abroad. Even though cab and advance hotel bookings cannot be done, forex cards can be used for your other day-to-day purchases. Just enter your card details like any regular debit/credit card and make the payment.
ATM Withdrawals
Forex Cards also work at ATMs worldwide, making it easy to withdraw local currency in cash. However, remember to reduce the number of withdrawals and increase the amount to skip excessive charges. Also, withdraw in the local currency to prevent dynamic currency conversion charges.
Tap, Swipe, and Pay at PoS Terminals
With Forex Cards, you can pay for meals, shopping, and services by swiping or tapping at PoS machines. Most Forex Cards support contactless payments for added convenience.
Forex Card Charges
| Charges | Amount or Percentage Charged |
| Cross-conversion fee for all usages (multi-currency card only) | 4.5% |
| ATM withdrawal (multi-currency card) | USD 2 – USD 3 |
| ATM withdrawal (single-currency card) | USD 5 |
| Dynamic currency conversion | 1% |
| PoS terminal transactions | Nil |
| Online Purchases | Nil |
So, how can you minimise these charges?
- A cross-conversion fee is charged when the currency loaded in a multi-currency card is converted to the local currency for payment. So, if your travel destinations are a few, it is better to consult a forex expert and choose between a single or multi-currency forex card.
- Reduce the number of withdrawals and increase the amount withdrawn to keep ATM withdrawal charges under control.
- Dynamic currency conversion (DCC) happens when you choose to view your payable amount in Indian Rupees. Even if you select DCC just to see the expense in your domestic currency for estimation purposes, a spontaneous currency conversion occurs, and the amount is paid in Indian Rupees. Therefore, it is better not to choose DCC merely to check the price in INR.
Pro Tip: Banks usually charge loading and reloading fees in addition to GST charges 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.
Forex Card Transaction Limits
| Type of Transaction | Daily Transaction Limit |
| ATM withdrawal | USD 1500 |
| Swipe payment | USD 15,000 |
| Online purchases from foreign websites | USD 15,000 |
| Contact-less payment | USD 35 |
Checking Balance in a Forex Card
Managing expenses while travelling is crucial. Here are how you can check your Forex Card balance:
- Log in to your bank or card issuer’s online portal.
- Use their mobile app for real-time updates.
- Call customer support for balance inquiries.
How Much Foreign Currency Can You Load on a Forex Card
The Reserve Bank of India (RBI) regulates how much forex you can carry while travelling abroad. USD 250,000 (or its equivalent) is the maximum limit for foreign exchange transactions (including overseas money transfers) per financial year. So after calculating the amount you are planning to take as cash, the excess can be loaded in a forex card.
Validity and Expiry of Forex Cards
Forex Cards typically come with a validity of 4 to 6 years, depending on the issuer. After the validity expires, you can unload any remaining balance or even renew/replace the card if needed.
Who Can Load Your Forex Card
If you are travelling for tourism purposes, you can only load currency from your own bank account. For travellers going abroad for education, the money should be transferred from a parent’s account. No one else should transfer money for currency loading or reloading on your behalf.
Forex Cards are an essential financial means for Indian travellers, offering a secure and stress-free way to manage foreign currency abroad. Wondering which is the best platform for buying a Forex card? Purchase with ExTravelMoney after consulting with our forex experts. Be it loading, reloading, or unloading your forex card, make it quick and easy with ExTravelMoney.
Also Read: What To Do When Your Forex Card Is Stolen or Lost Abroad?
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.