Question 1

Is it better to carry cash or forex card for travelling?

Accepted Answer

When travelling abroad, carrying a forex card is always a good idea. A card is safer than cash because it can be blocked if lost, and it also comes with insurance coverage. You are also protected against forex fluctuations since the rates are locked in at the time the card is loaded. You can also withdraw local currency notes from an ATM when necessary. For emergencies, you can carry some cash, but don't carry all the forex you need in cash.

Question 2

Which one is better forex card or an international debit/credit card?

Accepted Answer

When using your credit or debit card abroad, conversion fees may apply for payments and withdrawals. Forex cards come with little or no transaction fees on international trips and are available at Interbank rates with zero markups, thus saving you up to 5-7% over credit/debit cards. You can keep an international debit or credit card as a backup option if you run out of cash or in case you are unable to reload your Forex Card.

Question 3

Does forex card have transaction fees?

Accepted Answer

In general, forex cards do not charge transaction fees, but they may charge cross-currency fees, cash disbursement fees or cash withdrawal fees, depending on the transaction value. A cross-currency fee is applied on transactions where the transaction currency differs from the currency available on the Multicurrency Forex card.

Question 4

Is forex card cheaper than debit/credit card?

Accepted Answer

If you use a Forex card on an international trip, you will pay less or no transaction fees as compared to using a debit or credit card. Also, there are no issuance, load, reload, or unload charges associated with them. On the other hand, Debit/credit cards have heavy fees slapped on them. Generally, Visa debit/credit cards charge you 1% plus your bank takes 3% on every transaction on top of that.

Question 5

Is forex card taxable?

Accepted Answer

Effective October 1, 2020, the Finance Act, 2020 introduces new tax provisions on foreign exchange transactions under the Liberalised Remittance Scheme (LRS). A TCS of 5% will be applied on LRS transactions exceeding INR 7 lakhs if a foreign exchange facility is availed through loading Forex cards.

Question 6

Can we withdraw cash from forex card?

Accepted Answer

You can withdraw cash using a forex card from any ATM overseas that accepts VISA/VISA Plus/Mastercard. Insert the card, select Checking/Current Account on the screen, and follow the instructions. Enter your PIN and the amount you would like to withdraw in local currency. It is important to know that there is a transaction fee levied at ATMs for cash withdrawals & balance inquiries.

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