Learn · Forex card

What is a forex card?

In India, a forex card usually means a prepaid travel card: you load foreign currency before you travel and spend that balance abroad. A zero-forex credit card is a different product. Nothing is loaded on it; each foreign purchase is converted and billed in rupees, without the issuer's forex markup.

Three cards people call a "forex card"

At a glance
Card Where the money is What happens abroad
Prepaid forex card, one currency Foreign currency you loaded before travelling Purchases and withdrawals reduce that balance
Prepaid multicurrency forex card Several currency wallets on one card (ICICI Bank's holds up to 15, including THB, SGD and AED) The wallet matching the local currency is debited, if you loaded it
Zero-forex credit card Nothing loaded. It is a credit card The purchase is converted and appears on your rupee bill, with no issuer forex markup

An ordinary credit card works like the last row but adds its published forex markup to each foreign transaction. See what forex markup is.

Currency wallets and cross-currency fees

Prepaid cards

A multicurrency card avoids conversion only when you spend a currency you loaded. Spend Thai baht from a card that holds only US dollars, and the card converts from the dollar wallet. Issuers can charge a cross-currency fee for that: ICICI Bank's schedule lists 3.5% plus GST, and 2.5% for moving money between your own wallets. Load the currency of the country you are visiting where the card supports it, and check your card's schedule of charges for its own numbers.

ATM cash and the balance left over

Before and after the trip

A prepaid card can charge a fee for each ATM withdrawal abroad. ICICI Bank's schedule, for example, lists THB 65 per withdrawal from the baht wallet. The ATM's operator may add its own charge as well.

Money you load stays on a prepaid card until you spend it or ask the issuer to return it, under the issuer's refund rules. A credit card holds no balance, so nothing is left over after the trip.

Pay in the local currency, whichever card you use

DCC

A terminal or ATM abroad may offer to charge you in rupees, or in US dollars. That is dynamic currency conversion: the merchant sets the rate, and your bank may add a fee of its own. Choose THB in Thailand, SGD in Singapore and AED in the UAE. A multicurrency wallet does not protect you if you accept rupees at the terminal. How DCC works.

Which to use

Decision
If you want Consider
A fixed budget loaded before you leaveA prepaid forex card in the local currency
Several countries on one tripA multicurrency prepaid card with each currency loaded
No loading and nothing left overA zero-forex credit card
A credit period and rewards on spendingA zero-forex or travel credit card
A backup if a card is declinedA second card on another network, and some cash

Money Matters compares credit cards. We do not yet hold verified data on prepaid forex cards (their wallets, loading rates and fees), so we do not rank them. For credit cards with a published 0% forex markup, see zero-forex credit cards.

Common questions

What is a forex card?
In India, a forex card usually means a prepaid travel card. You load foreign currency onto it before you travel and spend that balance abroad. Some hold one currency; multicurrency cards hold several currency wallets on one card.
Is a forex card a credit card?
No. A prepaid forex card spends money you have already loaded. A credit card spends on credit and bills you later in rupees. A zero-forex credit card is a credit card whose issuer adds no forex markup to foreign transactions, so it is sometimes called a forex card, but nothing is loaded on it.
What happens if my forex card does not have the local currency?
The card converts the amount from a currency you did load, and the issuer may charge a cross-currency fee. ICICI Bank's forex prepaid card, for example, lists a cross-currency fee of 3.5% plus GST. Check your own card's schedule of charges.
Should I pay in rupees or the local currency abroad?
Choose the local currency, whatever card you use. Paying in rupees at a foreign terminal or ATM is dynamic currency conversion (DCC): the merchant or ATM sets the exchange rate, and your bank may add its own fee on top.
Should I use a forex card or a zero-forex credit card?
It depends on how you want to pay. A prepaid forex card suits a fixed budget loaded before you leave. A zero-forex credit card needs no loading and leaves no balance behind, and you repay the rupee bill later. Many travellers carry one of each, plus some cash.

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