What is a Forex Card: Meaning, How It Works, and How to Get One

International travel often comes with the challenge of managing money efficiently. Between fluctuating exchange rates, hefty bank fees, and the risk of carrying large amounts of cash, it’s easy for a significant chunk of your travel budget to be lost before you even buy a souvenir. This is where the forex card has emerged as a popular and smart solution for Indian travellers.

This guide will walk you through what a forex card is and how it works, helping you understand its meaning, benefits, and how it compares to other payment options. We’ll cover practical advice on how to get a forex card. We'll also introduce you to the Wise Travel card, which allows you to hold 40+ currencies in on card and spend without any forex markups or hidden fees.

What is a forex card?: What forex card means

A forex card (also referred to as a forex prepaid card or travel card) means a prepaid travel card designed specifically for international use. Think of it like a rechargeable debit card that you load with foreign currency before your trip.

Issued by banks and financial providers, you load it with foreign currencies like USD, AED, EUR, or SGD. The card operates independently of your Indian bank account, making it secure. The use of a forex card is versatile, it’s accepted for dining, shopping, online transactions, and ATM withdrawals abroad. Its major advantage is that the exchange rate is locked-in when you load it, protecting you from currency fluctuations. Unlike using a standard debit card or credit card, a forex card often comes with minimal or zero hidden fees and low exchange markups, positioning it as a highly cost-effective option for Indian travellers.¹ There are many popular forex card options available from both banks and providers, such as the ICICI Bank Forex Prepaid Card, BookMyForex Card, and the Wise Travel Card.

Check out our guide to see what’s the best forex card in India

Forex card vs credit card

Is the forex card similar to your international credit card? Although both lets you spend abroad, they differ in certain aspects.²

• Exchange rate: A forex card is preloaded with foreign currency, offering protection by locking in the exchange rate at the time of loading, which helps you avoid market fluctuations and budget accurately. Credit cards, conversely, perform the currency conversion on the spot, exposing you to the day's variable rate.
• Fees: Credit cards typically charge high foreign transaction fees (as an added markup) and conversion fees on every international swipe, adding to your expense. In contrast, forex cards generally have no foreign transaction costs and lower currency conversion fees.
• ATM cash: Using a credit card for ATM cash withdrawals incurs steep cash advance fees. Forex cards are more economical, often offering lower or even free withdrawal limits.
• Security: The prepaid nature of a forex card provides better budget control and limits financial exposure since it is not linked to your main bank account.

Essentially, credit cards are best kept for emergencies, while the forex card is the more cost-effective tool.

Forex card vs cash

As a traveller, your next question would be, “Is a forex card better than cash?” The answer is generally yes, especially for carrying the bulk of your funds. A forex card is as liquid as cash, but with far less risk. Let’s explore the pros and cons of a forex card vs. cash.³

• Security: Forex cards can usually be instantly blocked via the app if lost or stolen; carrying a large quantity of cash is risky, and if it is lost or stolen, you’ll have to go through a hassle for a small chance of recovery. The forex card sits compactly in your wallet and avoids the need to carry cumbersome cash or declare large amounts at customs.
• Convenience: You can just tap and go without having to count cash. You can also easily load the forex card online without searching for a currency exchange while travelling and can easily monitor your spending using the card provider’s app or online platform.
• Acceptance: Cash has higher universal acceptance (especially with small vendors); although the forex card is widely accepted in most places.
• Exchange rate: Forex cards offer competitive, locked-in exchange rates. In comparison, cash exchange usually provides worse rates than a forex card, especially at airports.

Overall, if you’re heading to a country where digital payments are generally accepted, it’s more convenient to use a forex card and carry only a small amount of cash for tips, small vendors, and emergencies.

How does a forex card work?

Forex cards work under a simple mechanism.⁴ You load your forex card in India with foreign currency when ordering it. Depending on your travel plans, you can load the card with a single currency or multiple currencies simultaneously.

The card functions just like your everyday debit card. All shops, restaurants, and online platforms that accept major card networks (Visa/Mastercard) will honour forex cards. For example, you can simply tap your forex card to pay your restaurant bill or complete an online booking for your train ticket abroad.

You can withdraw cash in local currency abroad using your forex card at any compliant ATM. If your balance is running low, you can conveniently reload it online using your provider’s app or platform.

Forex cards offer various benefits to users, such as:⁵

• You can load the forex card with the foreign currency of your choice.
• Forex cards protect you from losses due to exchange rate fluctuations. Since you load them in foreign currency before leaving India, the exchange rate is locked-in.
• Forex cards generally have better exchange rates and lower fees, making them cheaper than using a standard debit or credit card for your international transactions.
• Using a forex card ensures you don’t need to carry risky physical cash.
• Some forex cards also offer additional benefits, such as travel insurance.

What to note when choosing a forex card

With all the forex card options out there, it can get overwhelming to decide what’s right for you. Here are the key things to look out for when choosing a forex card.⁷

Potential fees

Forex cards come with various fees. Look for charges associated with issuance, reloading, ATM withdrawals, and inactivity. Some cards might waive issuance fees but compensate by charging high withdrawal or transaction fees. Look at the entire fee structure.

Exchange rate markups

Exchange rate markups can sneak through as a hidden fee. Even with “zero fee” claims, some cards charge markup on exchange rates. Google for the live interbank rates and compare with the card’s rates to spot discrepancies.

Reloading facility

You should opt for cards that offer online or app-based reloading options. You should also check if the reloads are instant or take time, especially during emergencies.⁸

Currencies supported

Forex cards typically support multiple currencies, making them ideal for multi-country travel. However, ensure that your card supports the currencies you need for your travels. The Wise Travel card supports over 40+ currencies, the highest offered by any provider in India.

Security

Look for a provider with a platform that offers balance check, transaction history, mobile alerts, and immediate card lock/unlock features.

How to apply for a forex card

Applying for a forex card is easy. Most providers have online application forms. All you do is access the provider’s website/app and apply for the forex card online.

For example, this is the procedure for applying for a Wise Travel card, a forex card that lets you hold 40+ currencies and has no forex markup fees:⁹

To apply for a Wise Travel card in India, you must first be an Indian resident, then you can follow these steps:

1. Register for a Wise Personal Account online or in the Wise app - you’ll need to create a profile
2. Start by verifying your phone number via SMS
3. Enter your personal details exactly as they appear on your PAN card, including your full name and Date of Birth (DOB) and provide a few more details for extra verification
4. Once your profile is set up, go to the "Cards Tab" to apply for a Wise Travel card (physical or digital)
5. To complete the physical card order, you must provide your delivery address, choose how your name appears on the card, and set your PIN.
6. Next, we will ask about the primary purpose for your card (for most users, this will be spending money when traveling abroad)
7. You will then need to verify your PAN and after PAN verification, you will proceed to add money to your account. Here, you will choose which currency to load and select your payment method - do note you can only load the card using a bank account in your own name based on the PAN details provided earlier
8. Finally, upload your proof of travel documents and complete a quick video KYC check to verify your identity

Most cards will be delivered within 3-5 working days after application. You can track your card dispatch and delivery using the tracking number provided when you order. When you receive your card, you’ll need to activate it in the Wise app, using the activation code which is included in the card mailer, and you’re all set!

Get a Wise Travel card 💳

Summary

Carrying physical foreign currency when travelling overseas is risky. Usual debit or credit cards are convenient, but they can be expensive to use due to exchange rate fluctuations and hidden fees. A forex card is an ideal option because it offers the flexibility of a debit card or credit card, as well as the convenience of cash. We have discussed everything you wanted to know about forex cards, including their benefits, usage, and how you can apply for a popular option: Wise Travel card.

Meet the Wise Travel card: 40+ currencies in one card, with no forex markups or hidden fees

With no hidden markups, the Wise Travel card is a smart way to spend abroad. You'll always get the real interbank exchange rate for conversions across 40+ currencies. Wise's transparent, low pricing, plus no foreign transaction fees or forex markups, usually means you are getting the best value for your money.

The fully digital account opening and vKYC process allows you to sign up from the comfort of your home, and there are no annual or monthly fees either. Simply order your card, show proof of your travels, load your funds, and you're all set. Plus - card orders are currently free to Indian addresses (only until February 10, 2026)! A physical Wise card enables you to make secure chip and PIN payments and get some free ATM withdrawals while you're overseas. You can also instantly freeze or unfreeze your card in the app anytime for peace of mind.

Wherever your travels take you, the Wise Travel card is the only forex card you'll need to make spending internationally simpler and cheaper.

🚀 Get a Wise Travel card

FAQs

Can I use a forex card for online transactions in India?

Most prepaid forex cards loaded with foreign currency are designed specifically for use outside India. They often cannot be used for Indian Rupee transactions online or at domestic points of sale. However, if you are in India and making an online purchase from a foreign-registered merchant that bills in a foreign currency (such as an international train ticket), you can use the foreign currency balance on your card for that transaction.