Definition
A prepaid travel card loaded with one or more foreign currencies before you leave India. You lock the exchange rate when you load it, then pay in shops or withdraw cash abroad. It is safer than carrying large amounts of cash.
How a forex card works
You load, say, EUR 1,500 and USD 500 at the day's rate. Abroad, you tap or swipe it like a debit card, or withdraw cash at ATMs. The card is not linked to your bank account, so if it is skimmed, only the loaded balance is at risk. Most cards come with an app to lock the card, check balances and reload from India.
Charges to compare
- Exchange rate at loading: the main cost. The gap between the card rate and the interbank rate is the forex markup.
- Issuance and reload fees: often ₹0–500.
- ATM withdrawal fee: commonly about USD 2–3 or EUR 2 per withdrawal, plus whatever the local ATM charges.
- Cross-currency fee: spend in a currency you didn't load, such as Swiss francs on a euro card, and you may pay 2–3.5% extra.
- Unloading: converting leftovers back to rupees happens at a lower buying rate.
Example
A Kochi couple heading to Switzerland and Italy loads CHF 1,000 and EUR 1,200. They pay in francs in Lucerne and in euros in Rome, avoiding cross-currency charges. At the end of the trip they keep EUR 150 on the card for their next Europe holiday rather than converting it back at a loss.
Practical advice
- Load the currencies of the countries you will actually spend in.
- Always pay in the local currency, never in rupees; see dynamic currency conversion.
- Carry a backup card and some cash.
- Some hotels and car rental desks won't accept prepaid cards for security deposits, so carry a credit card for those.
- Loads count towards your LRS limit; TCS applies only above ₹10 lakh a year.
Our foreign exchange desk can help you compare card and cash options.