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

The Wise Travel card lets you hold 40+ currencies and spend at the interbank exchange rate with no forex markups or hidden fees - now available to order for free (Limited time offer, while stocks last).

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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 known as forex prepaid card or a travel card) is a card designed specifically for international transactions. However, not all forex cards work the same way. Depending on how you prefer to manage your money, you will likely choose between two main variants:

INR-based travel card

An INR-based travel card functions by holding your balance in Indian Rupees and performing a real-time conversion at the prevailing rate whenever you swipe abroad. These cards usually feature zero forex markup, which means you're not charged for the 1-3% added foreign transaction fee that you're typically charged.

Multi-currency forex card

A multi-currency card allows you to "lock in" exchange rates by pre-loading specific foreign currencies (like USD, EUR, or GBP) before you travel. Since the conversion from INR happens at the time of loading, your balance remains shielded from market fluctuations during your trip.

Issued by banks and financial providers, both variants are designed to be more cost-effective than using a standard debit or credit card for overseas spending.¹ They are widely accepted for dining, shopping, online transactions, and ATM withdrawals abroad.
Popular forex card options in India include traditional bank offerings like the ICICI Bank Forex Cards, as well as specialised providers like the BookMyForex Card and the Wise Travel card.

Check out our guide to compare the best forex cards in India.

Forex card vs credit card

Is a forex card similar to your international credit card? Although both let you spend abroad, they differ significantly in cost and structure.²

• Cost of overseas spending: Credit cards typically charge high foreign transaction fees (usually 2%–3.5%) on top of a marked-up exchange rate for every swipe. In contrast, forex cards, whether multi-currency or INR-based, usually offer zero to low exchange rate markups and no foreign transaction fees, making them more cost-effective.
• ATM withdrawals: Using a credit card at an ATM abroad is very expensive due to high cash advance fees and interest. Forex cards are more economical, often offering lower or even free monthly 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 for daily travel needs.

Forex card vs cash

As a traveller, your next question is likely “Is a forex card better than cash?” For most of your travel budget, the answer is a yes. While cash is useful for small tips or street vendors, a forex card is usually safer and more economical. Let’s explore the pros and cons of a forex card vs. cash.³

• Security: Carrying a large quantity of cash is risky. In contrast, both variants of forex cards can be instantly blocked via a mobile app if lost or stolen. Using a card also removes the need to carry bulky rolls of bills or worry about declaring large amounts of currency at customs.
• Convenience: You can skip the search for a currency exchange booth in a foreign city. You can simply tap to pay or withdraw local currency from an ATM as needed. Additionally, you can usually track your spending and check your balance in real-time on your mobile phone with most providers.
• 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 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?

The way a forex card functions depends on whether you choose a multi-currency or an INR-based variant. While both offer a seamless experience abroad, their underlying mechanisms differ:⁴

1. Loading the card

For your multi-currency forex card, you load the card in India by converting INR into the foreign currency of your choice (e.g., USD, EUR) before you travel. You can often load multiple currencies on a single card.
With the INR-based card, You simply load the card with Indian Rupees (INR) from your bank account. There is no need to decide which foreign currency you need in advance.

1. Spending and withdrawals

Once you are abroad, both cards function just like your everyday debit card. All shops, restaurants, and online platforms that accept major networks like Visa or Mastercard will honour them.

When it comes to the multi-currency card, the card detects the local currency and deducts funds directly from the corresponding currency wallet, while the INR-based card a real-time conversion at the point of sale, deducting the equivalent INR amount from your balance using the prevailing rate.

1. ATM Withdrawals

You can also withdraw local cash at any compliant ATM as you would with your standard cards.

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 are often the hidden fees of international spending. Even when a provider claims "zero fees" or "no forex", they may still apply a spread to the conversion rate. To spot these discrepancies, compare the provider's rate you receive with the interbank rate (the rate you see on Google), which you can see below.

Transparent providers, such as Wise, always uses the interbank rate for every conversion, ensuring you aren't paying a hidden charge.

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 foreign transaction 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 (limited time launch offer, while stocks last)! 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 free 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.

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Sources:

1. ICICI Bank: What is a Forex Card and How it Works
2. Axis Bank: Forex Cards vs. Credit Cards
3. HDFC Bank: Forex Card, Cash, or Credit Card: Which is Best?
4. Axis Bank: What is a Forex Card?
5. ICICI Bank: Travel Card Insurance Policy
6. ICICI Bank: 6 Important Points to Consider Before Opting for a Forex Card
7. SBI: State Bank Foreign Travel Card