Are you also confused about Forex cards vs. credit cards? Which one should you use abroad? When you have a plan to go on an international trip, then you take some foreign currency with you and some local currency, and for the international currency, you have to pay a currency exchange fee with GST.
Apart from the cash, you can take either a credit card or a forex card, or both. But which card is better to use internationally while both have their advantages? Below are 5 key reasons to help you decide wisely with realistic examples and data.
Table of Contents
Reason 1: Currency Conversion Charges for Forex Card and a Credit Card
One of the biggest factors to consider is how exchange rates affect your spending.
| Factor | Forex Card | Credit Card |
|---|---|---|
| Rate fluctuation risk | No (rate locked at time of loading) | Yes (real-time conversion at transaction) |
| Currency Conversion Fee | 0% (locked-in rate) | 0.99%–3.5% on average |
| Best for | Budget-conscious travelers | Those comfortable with dynamic rates |
Example:
- Forex Card: If you load INR 100,000 when USD is INR 86, you’ll get approx. $1162.79. No further conversion fee when you use a Forex card.
- Credit Card: Assume the same $1162.79 was spent by credit card. On INR 100,000 with 3.5% currency markup fee = INR 3,500 extra. Plus GST on fees = approx. INR600. The total extra cost is INR 4100.
Winner: Clearly Forex card
Reason 2: Spending & Transaction Fees
Different cards come with varying transaction fees.
| Fee Type | Forex Card | Credit Card |
|---|---|---|
| ATM Withdrawal Fee | INR100–INR150 per withdrawal | INR300–INR500 or 2.5% |
| Annual Fee | Usually lower | Can be higher |
| Hidden Charges | Minimal | Possible hidden fees |
Example: If you withdraw money 5 times from ATM in abroad
- Forex Card: INR 150 x 5 = INR 750
- Credit Card: INR 400 x 5 = INR 2000 + 2.5 % cash advance fee
Winner: Clearly Forex card
Reason 3: Security & Fraud Protection
Security is a major concern when using cards abroad.
| Security Feature | Forex Card | Credit Card |
|---|---|---|
| If lost or stolen | Block and reissue; balance may be recoverable | Zero liability if reported early |
| Card Blocking | Can be blocked instantly | Can be blocked instantly |
| OTP or app notifications | Some cards lack real-time alerts | Most cards have instant alerts |
Winner: Better fraud protection and tracking is available for credit cards.
Reason 4: Rewards & Offers
Not all cards are accepted everywhere.
| Usage Factor | Forex Card | Credit Card |
|---|---|---|
| Reward points | Minimal or none | Up to 5% cashback or air miles |
| Online Payments | May not work on some international websites | Works on almost all platforms |
| Airport lounge access | Available on premium cards | Widely available on many Indian credit cards |
| Global Acceptance | Limited to certain merchants | Widely accepted worldwide |
| Best for | ATM withdrawals & POS payments | Online bookings & emergency expenses |
Winner: For more rewards and benefits, a credit card is the winner.
Reason 5: Acceptance & Flexibility
If you love perks, this factor matters.
| Benefit Type | Forex Card | Credit Card |
|---|---|---|
| Accepted at all international merchants | Yes, but sometimes limited | Widely accepted worldwide |
| Overspending capability | No (limited to loaded amount) | Yes (up to credit limit) |
Winner: Credit Card: Better for hotels, flight bookings, and emergencies.
Top Indian Forex Cards (2025)
| Card Name | Features | Fees |
|---|---|---|
| Niyo Global Card (by SBM) | Zero forex markup, real-time rates, Visa | Free |
| BookMyForex Card | Multi-currency support, 0% markup | INR 150–INR 200 issuance |
| HDFC ForexPlus Card | Locked rates, ATM use, secure | INR 500 approx |
| Axis Bank Forex Card | Multi-currency, lounge access | INR 300–INR 500 |
Credit Cards with Low/Zero Forex Markup (2025)
| Credit Card | Forex Markup Fee | Highlights |
|---|---|---|
| RBL World Safari Card | 0% Forex fee | No charges, lounge access |
| IndusInd Bank Pioneer Legacy | 0% Forex fee | Zero foreign charges |
| HDFC Infinia/ Diners Black | 2% (but high rewards offset it) | Premium travel benefits |
| IDFC First Wealth Credit Card | 1.5% | Low markup + travel perks |
Final Verdict (Based on INR 1 Lakh Abroad Spending):
| Mode | Forex Card | Credit Card |
|---|---|---|
| Conversion Fee | INR 0 | INR 3,500-INR 4,100 |
| ATM Fee | INR 750 | INR 2,000 + interest |
| Acceptance | Medium | High |
| Risk | Medium | Low |
| Rewards | Low | High |
Final Decision: Which One Should You Choose?
- If you are a budget traveler or student, Forex Card is best. This will help you to stay under your budget.
- If you are a frequent flyer or business traveler: A credit card with zero forex markup and travel rewards credit card will be beneficial for you
1. Which is better for international travel, a forex card or a credit card?
Answer: A Forex card is better because then we can control our spending and saving on conversion charges. On the other hand, a credit card is good for flexibility, hotel booking, and earning rewards. If you carry both, then it is ideally better.
2. Can I use my Indian credit card internationally?
Answer: Yes, most Indian credit cards can be used abroad, but they may charge a foreign transaction fee (usually 2–3.5%) on each transaction.
3. Are forex cards safe for international travel?
Answer: Yes, forex cards are safe and come with chip+PIN security. They are prepaid, so the risk of overspending is also low.
4. What is the forex markup fee on Indian credit cards?
Answer: Forex markup fees range from 0% to 3.5% depending on the credit card. For example, RBL World Safari and IndusInd Pioneer Legacy offer 0% forex markup.
5. Which forex card is best for Indian students going abroad?
Answer: Cards like the Niyo Global Card, BookMyForex Card, and Axis Forex Card are among the best forex cards for Indian students. They are offering zero or low forex markup.
6. Can I withdraw cash abroad using a forex card or credit card?
Answer: Yes, both allow ATM withdrawals. Forex cards charge INR 100–INR 150 per transaction, while credit cards charge higher fees (INR 300–INR 500) and interest from day one as well.
7. Do forex cards have expiry dates?
Answer: Yes, most forex cards are valid for 3–5 years, and you can reload or reuse them for future international trips if valid.
8. Can I earn cashback or rewards on international credit card spending?
Answer: Yes, many international credit cards in India offer cashback, reward points, or air miles on foreign spending. Premium cards like HDFC Infinia or IDFC Wealth offer such benefits.
9. Is it better to carry cash, a forex card, or a credit card abroad?
Answer: Carry a mix: a small amount of foreign currency cash, a forex card for daily expenses, and a credit card for hotel bookings or emergencies. This is the best combination.
10. How do I avoid foreign transaction fees on my Indian credit card?
Answer: Choose a zero forex markup credit card like :
RBL World Safari Card
IndusInd Pioneer Legacy
Niyo Global