A forex card can be a traveller’s best friend, but only if used wisely. This blog discusses the 10 common mistakes people make while using their forex card abroad that can turn convenience into chaos. Read on to level up your forex experience!
Also Read: How to Choose The Best Forex Card for an International Trip
1. Failing to Check Forex Card Balance
Unlike credit cards, forex cards only carry the amount that you have loaded. So, if you do not track the transactions, it can lead to embarrassing situations at the billing counters.
Forex card balance can be checked in the Forex card app without any charges. Reload the required currency on your card if you feel you have insufficient funds.
2. Leaving the Backup Card Behind
Typically, when you purchase a Forex Card, a backup card is included in the Forex Card welcome kit. This replacement card can be utilised if your Forex card is lost or damaged. But at times during the packing hustle, travellers forget to take the replacement card.
Always remember to take it with you so that you can simply activate it online or on call and transfer the remaining funds from your lost Forex card to the replacement card and begin using it.
3. Multiple ATM Withdrawals
ATM withdrawals using Forex cards can incur charges that vary depending on the ATM operating bank and country. The fee can range from USD 2 to USD 3 for multi-currency and USD 5 for one-currency forex cards.
So the best practice is to minimise the number of ATM withdrawals and maximise the amount withdrawn.
4. Paying in Currencies Unavailable on Your Forex Card
Paying or withdrawing in currencies that are not loaded in your forex card, even Indian Rupees, can lead to charges or unfavourable exchange rates, depending on the card type.
If you are using a multi-currency forex card and pay in a currency other than the one loaded, you shall incur a cross-conversion fee of 4.5%.
But if you do the same using a one-currency Forex card, there shall be no cross-conversion fee. However, the transaction will take place at the then exchange rate.
So if you have multiple countries in your travel itinerary, opt for a multi-currency forex card and load the necessary currencies.
If your destination uses an exotic currency not available for a forex card, consider getting a single-currency forex card. Load it with US Dollars or Euros, which will be converted automatically to the required currency for transactions.
5. Checking Balance in an ATM
Some forex cards charge a fee of up to USD 1 to check the forex card balance through an ATM.
So, the best idea is to check the balance in your forex card app for free.
6. Not Encashing the Balance Funds in Forex Card
If the balance on your card exceeds the equivalent of USD 2000, you are required to withdraw the remaining funds. According to RBI regulations, this must be done within 180 days from your last card usage.
7. Viewing your Payable in Indian Rupees
Dynamic Currency Conversion (DCC) happens when you choose to see your payment in Indian Rupees. Even if you select it for estimation, the conversion occurs automatically, and you’ll pay in INR with higher exchange rates and fees.
It’s best not to use DCC just to check prices in INR.
8. Ignoring Transaction Limits
Forex cards maintain a daily transaction limit for safety purposes. So keep the limits in mind while making transactions to avoid unwanted surprises.
| Type of Transaction | Daily Transaction Limit |
| ATM withdrawal | USD 1500 |
| Swipe payment | USD 15,000 |
| Online purchases from foreign websites | USD 15,000 |
| Contact-less payment | USD 35 |
9. Entering Incorrect PIN 3 Times
In case you forget your forex card PIN, giving a blind try three times could result in your card being blocked. To reactivate it, you will need to contact customer support, and the activation period may take up to 24 hours.
So, attempt to enter your PIN twice. If it doesn’t succeed, visit your forex card app and reset the PIN.
10. Using Your Forex Card as Guarantee of Payment
At times, apart from the advance payment, hotels, car rentals, and cruise bookings may require a payment guarantee. It is not a good idea to use your forex card for that purpose. This is because these companies will calculate your estimated bill and block the amount, and you will not be able to use the funds for other purposes.
So it is wise to show your credit or debit card as a guarantee of payment, and use your forex card for final bill settlement.
A forex card is one of the smartest ways to carry foreign currency. You just need to make sure you use it right by avoiding these 10 mistakes.
But there is one mistake that you should avoid before buying a forex card! Guess what?
Not checking out ExTravelMoney!
Buy your forex card from ExTravelMoney for great exchange rates, fast home delivery, expert customer assistance and complete peace of mind.
Also Read: How to Use Forex Card – A to Z Guide for Indian Travellers
Ann Mariya Job is the Associate Content Writer at ExTravelMoney.com. Holding a Bachelor’s in Journalism, she excels in creating deeply researched, engaging, and crisp content. Her work helps readers understand the complexities of foreign exchange, overseas money transfers, and international travel.