Going to study abroad from India is an exciting journey, but managing finances in a foreign country can be challenging. Indian students often look for ways to reduce expenses while ensuring smooth transactions for everything from tuition fees to daily spending.

One popular option is a Forex card, a prepaid travel card that allows students to load foreign currency and use it like a debit card. But is it the best choice for Indian students? Does it save money, or are there hidden drawbacks? To give you a real student’s perspective, we spoke to Rose Maria Job, an Indian student at Anglia Ruskin University (ARU), Cambridge, about her experience using a Forex card in the UK. Before travelling abroad, she purchased her Forex card from ExTravelMoney.

Let’s break it down and see if a Forex card is the right financial tool for students navigating life in a new country. Let’s begin!

What is a Forex Card for International Students?

A Forex card is a prepaid travel card in which one can load funds in a foreign currency while in India itself, and then use it to pay for their expenses abroad. It acts like a debit card that you can use abroad for withdrawing money from ATMs, swiping in PoS terminals at supermarkets, or paying for stuff online in a foreign currency.

With respect to students, we have student-specific Forex cards. These cards help international students manage their expenses efficiently and provide a host of other benefits. 

Learn More: 11 Best Forex Cards for Students Travelling Abroad: Benefits & Features

Benefits of Student Forex Cards

• Acts as a Student ISIC Card: Some cards also serve as International Student Identity Cards (ISIC), offering student discounts and easy identification abroad. Forex cards remain valid until the end of your course, typically with a duration of up to five years.
  

Also Read: Forex Cards, The Best way For Students To Carry Money Abroad

• Multi-Currency Support: Many prepaid cards let you load multiple currencies, making them perfect for travelling to different countries while studying abroad.
  
  
• Minimal Transaction Charges: Forex cards do not incur fees when used in the loaded currency, making them a more cost-effective option for international transactions. Utilise your card in the loaded currency to avoid additional currency conversion fees.
  
  

Rose says “I saved a lot on transaction fees compared to using my Indian debit card. I didn’t have to worry about conversion charges every time I made a purchase.”

• Fixed Exchange Rates: Forex cards allow you to lock in exchange rates when loading funds, protecting you from future fluctuations. As a student staying abroad for 2 to 4 years, this helps you avoid rising currency rates over time.
  
  

According to Rose “The fixed exchange rate was a big plus. One thing I really appreciated was the fixed exchange rate. I loaded my card before leaving India, and even when the pound’s value changed, I didn’t lose money on conversions. I didn’t have to worry about the pound going up suddenly and making my expenses higher.”

Comparing Forex Cards, Cash, Debit/Credit Cards and Wire Transfers in Different Scenarios for International Students

Scenario 1: First-Time Students

Paying for Living Expenses Abroad
(Accommodation, Groceries, Utilities, Travel, Online Purchases)

When students initially arrive, they typically do not have a local bank account. Until they open a new account, they will need to carry some money from India to pay for their accommodation, groceries, utilities, travel, online purchases, and other living expenses.

Let’s examine which payment method is best in this scenario.

Forex Card

Pros	Cons
Convenience & Security: Allows students to carry a large sum of foreign currency safely. Protected by PIN and chip technology.	ATM Withdrawal Charges: While card payments are free, withdrawing cash from ATMs may incur fees.
Locked-in Exchange Rates: Forex cards allow you to lock in exchange rates when loading, protecting you from currency fluctuations.	Reloading Issues: To reload a Forex card, students or their parents should contact the Forex provider and submit the necessary documents. Activation may take up to 24 hours, and for students, reloading is allowed only until the course ends.
Global Acceptance: Forex cards are widely accepted, making them a convenient choice for smooth transactions by allowing you to use them directly at PoS machines in supermarkets, taxicabs, and restaurants without additional charges. Since the payment is made using the foreign currency loaded in it.	Card Acceptance Issues: Not all universities and small vendors accept Forex cards, requiring students to keep some cash as a backup

Rose mentions “My Forex card was great for most expenses, but I quickly realised that small shops and local markets preferred cash. Also, when I needed to reload my card, I had to wait almost a day for the funds to be available.”

Cash

Pros	Cons
Immediate Accessibility: Cash is readily available for urgent expenses like taxis, food, and SIM cards upon arrival.	Security Risks: Carrying large amounts of cash is unsafe, especially in a new place where students are unfamiliar with their surroundings and people, increasing the risk of theft or loss.
Useful for Small Transactions: Many street vendors, small shops, and public transport may not accept cards, making cash essential.	Limited Usability: Cash may not be accepted for larger transactions, online payments, or bookings like accommodation and travel.
Backup for Payment Failures: If debit or credit cards and Forex cards don’t work due to technical issues, cash serves as a reliable alternative.	Difficult to Recover: Lost or stolen cash cannot be blocked or recovered, unlike a Forex or debit card.
No Transaction Fees: Unlike Forex or debit cards, cash payments do not incur extra charges or conversion fees.	Currency Exchange Problems: Exchanging currency frequently can lead to unfavourable exchange rates and extra fees.

Rose notes “I kept some cash for emergencies, but I never felt comfortable carrying too much. Losing cash means it’s gone forever. The Forex card felt much safer since I could block it immediately if anything went wrong.”

Also Read: Forex Card or Cash Which is Best for International Trip?

International Debit/Credit Card

Pros	Cons
Convenient for Daily Expenses: Ideal for paying rent, groceries, dining, and other living expenses abroad.	ATM Withdrawal Costs: Foreign transactions can incur 1–3% fees and poor exchange rates. Using ATMs regularly may result in high withdrawal fees.
Widely Accepted: Works at most merchants, online platforms, and ATMs worldwide	Unfavourable Exchange Rates: Banks may offer poor currency conversion rates compared to Forex cards.
Emergency Backup: Useful when Forex cards run out of funds or cash is not available.	Risk of Overspending: Credit cards can encourage overspending, leading to financial mismanagement for students.

Rose reflects “I initially tried using my Indian credit card, but the fees were too high! Each time I withdrew money through an ATM, I faced significant charges and an unfavourable exchange rate since the rates weren’t locked in. That’s when I decided to fully switch to using my Forex card.”

Wire Transfers

For first-time students studying abroad, wire transfers are not a possible option initially. Since they do not have a local bank account upon arrival. Setting up a bank account takes time, once the local bank account is active, they can use wire transfers for future transactions if needed.

Also Read: Comparison of Forex Card vs Credit Card, Debit Card, and Cash

Scenario 2: Existing Students 

Students who are already studying abroad would have a local bank account there. So they’d be meeting their living expenses using their local debit/credit card or the cash earned through their part-time job. 

The most common scenario where they’d be considering using a Forex card (if they already brought one along at the time of going to study abroad) would be in the case of transferring a huge amount of money from India. And mostly a huge amount of money would be required either for the student’s living expenses or sometime to pay for their university’s next year’s tuition fee.

Forex Card	Wire Transfer
Parents load funds into the Forex card in India, and the student can use it abroad for payments and ATM withdrawals.	Parents transfer money from their Indian bank account directly to the student’s foreign bank account.
Instant access to funds once loaded onto the card.	It takes up to 48 working hours for the money to reflect in the student’s account.
Fixed exchange rate at the time of loading, avoiding currency fluctuations.	Exchange rates vary from the interbank rate, and banks or money transfer providers may apply an additional markup and fees, increasing the overall transfer cost.
Cannot be used for direct bank transfers, making it unsuitable for paying rent or university fees that require a bank transaction.	Ideal for large payments like tuition fees, rent, and other direct bank transfers.
Lower transaction fees, but ATM withdrawals may have extra charges.	High transfer fees due to exchange rate markup, bank and intermediary charges.

Can Forex Cards Be Used To Pay International Tuition Fees? 

Yes, but not all universities or colleges accept Forex cards for tuition fee payments. They often prefer wire transfers, which are considered the most secure and reliable method for transferring large sums.

Before planning to pay your tuition fees with a Forex card, always confirm with your university whether a Forex card is accepted for the tuition fee payment. If it is not, Wire transfers are the next best option. 

How to Get a Forex Card

You can get a Forex card from banks or an RBI-authorised Forex provider. Compare features, fees, and user reviews before choosing the best Forex card option. You’d need these essential documents: passport, visa, government-approved ID, PAN card, and confirmed air ticket showing travel abroad. 

You can book a Forex card online with ExTravelMoney.com, quickly and easily. We are partnered with top banks and RBI-authorised money changers like Thomas Cook, ICICI, EbixCash, and IndusInd. They offer exclusive deals for international students. 

Simply visit our website, compare exchange rates, load your desired amount, and get your card delivered the same day or maximum within 48 hours. You can also pick it up from our nearby partnered store.

Final Verdict

A Forex card is a reliable financial tool for international students, offering security, convenience, and cost savings. With fixed exchange rates, minimal transaction fees, and global acceptance, it simplifies everyday transactions and helps manage expenses efficiently. While it may not always be suitable for paying university tuition, it remains an ideal choice for daily spending, travel, and emergencies. By comparing exchange rates, fees, and reloading options, students can select the best Forex card to suit their financial needs, making money management abroad easier and more secure.

Also Read: How to Use Forex Card – A to Z Guide for Indian Travellers

Comments