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Forex Cards
Forex card or cash abroad? The smarter way to pay
Forex Cards or physical currency? Find out if a Forex Card or cash is the right choice for you and make your international travel finance strategy hassle-free.
Key takeaways
- Forex refers to converting Indian Rupees to foreign currency for travel or other needs.
- A Forex Card is a prepaid, multi-currency travel card with locked exchange rates.
- Foreign currency as physical cash is important for local markets, tips, and remote areas.
- Forex Cards offer better rates, app-based control, and stronger security.
- Most Indian travellers now prefer Forex Cards over physical currency for convenience.
Are you getting ready to travel abroad soon? Then it’s time to make one of the smartest money moves for your trip—deciding how to carry your funds. Be it splurging in Dubai, cafe-hopping in Paris, or backpacking through Europe, the right forex choice can stretch your budget and simplify your journey. However, this choice should always depend on your travel destinations, budget, and other preferences.
What is Forex?
Foreign exchange is how you convert your Indian Rupees into foreign currencies such as the US Dollar, British Pound, Euro, and Dirham. This is quite common for reasons such as travel, education, shopping, and working abroad. It’s usually legally enabled by Authorised Dealers such as banks and licensed currency exchange platforms only.
Currently, as per RBI guidelines under the Liberalised Remittance Scheme, Indian residents can carry up to ₹2.5 lakhs per trip and a total of $250,000 in Forex per financial year.
Forex Card
A Forex Card is usually a prepaid travel card that you can load with multiple foreign currencies at preferential rates. You can use such specialised Forex Cards for several purposes, such as shopping, travel, activities, etc, on your international trips.
Why choose a Forex Card?
- Lock in forex rates before your trip starts and skip the daily forex fluctuations.
- Load multiple currencies on one card, perfect for your multi-country trips.
- Accepted across thousands of global merchant outlets and ATMs
- Reload and track your spending anytime, anywhere, directly via an app or website
- Backed by several layers of security and easily blockable if misplaced or lost.
What to watch out for?
- Financial institutions and banks may impose a flat fee for your ATM withdrawals and POS transactions using a prepaid Forex Card.
- Limited usage possibilities in remote locations, especially in nations where card terminals are less common.
Foreign Currency
Foreign currency is the physical cash you exchange before or during your international trip. It comes in handy for emergencies, tipping, or making purchases at local markets, street vendors, or places that don’t accept cards. While it does provide flexibility, carrying too much cash with you isn’t safe during international travel. It is recommended to use your physical forex wisely and in moderation.
Why choose foreign currency?
- Works offline, so you don’t need mobile network, apps, or ATMs.
- Perfect for quick buys like street food, souvenirs, and local transport.
- Acts as a safety net during emergencies or unforeseen card failures.
- Quite useful in remote areas where digital payments may not work.
- No hidden charges, helping you avoid card fees on small, everyday spends.
What to watch out for?
- Forex rates change daily, so you may not get the best possible prices every time or you may buy at a higher rate without knowledge.
- Exchange counters at airports or specialised centres usually charge 2-4% more than the prevalent interbank rates.
- Physical cash can be easily misplaced or stolen, resulting in non-recoverable and unforeseen losses.
Comparing Forex Card vs currency
The following table compares a few of the most integral benefits of carrying foreign cash currency and Forex Cards:
| Feature | Forex Card | Foreign Currency (Cash) |
|---|---|---|
| Exchange Rate | Locked, favourable | Variable, usually higher |
| Safety | PIN protected, blockable | Risky if lost |
| Usage | Swipe/Tap/ATM | Cash-only transactions |
| Reloadable | Yes, via mobile app, open/Internet Banking/Axis Bank Forex Card website | No |
| Multi-Currency Option | Yes | No |
Conclusion
In an age where convenience and control matter more than ever, the way you carry your money abroad can shape your travel experience. According to a recent report, 99% of Indian travellers prefer using either credit, debit or prepaid travel cards, with only 10-12% still relying on currency exchanges for cash. Among them, one-third of users appreciated the ability to manage their cards through apps that provide instant expense tracking and access to reward programs such as airline miles and hotel points.
When travelling abroad, how you carry your forex can make or break your trip. Today, most Indian travellers favour prepaid travel cards over cash, valuing their safety, control, and ease of use. With instant tracking, multi-currency support, and rewards like air miles, Forex Cards are fast becoming the go-to for the savvy travellers. That said, keeping a small amount of foreign cash handy is always wise for on-the-spot expenses as well.
Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.
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