Forex cards or credit cards? A quick guide for your next trip

By the Nexara Holidays travel desk · 2 min read

Deciding how to carry money abroad can feel complicated. Here is a quick comparison to help you decide.

Forex cards

• Best for: budgeting and avoiding exchange-rate surprises.
• Load currency in advance at a fixed rate.
• Some cards hold several currencies, useful for multi-country trips.
• Check fees for ATM withdrawals and for unloading unused balance.

Credit cards

• Best for: hotels, shopping, restaurants and online bookings.
• Widely accepted in cities across Singapore, Europe and the Middle East.
• Most charge a foreign transaction fee; some premium cards charge less.
• Offer stronger protection for disputes.

Debit cards

• Best for: ATM withdrawals as a back-up.
• Fees vary; check with your bank.

Cash

• Best for: street food, markets, small shops, taxis and tips, especially in Thailand, Bali and Vietnam.
• Carry a moderate amount and keep it in different places.

The golden rule

When a card machine offers to charge you in rupees, decline and pay in local currency. This avoids poor conversion rates.

A good combination

• A forex card for daily spending.
• A credit card for hotels and big purchases.
• Some local cash for small expenses.
• A back-up card kept separately.

Taxes and limits

Indian residents' foreign spending falls under the Liberalised Remittance Scheme and some transactions attract TCS. See TCS on foreign tour packages explained in plain words and Money abroad: forex cards, credit cards and cash for Indian travellers.

Before you leave

• Tell your bank and card issuers about your travel dates.
• Note helpline numbers offline.
• Keep a small amount of local currency for the first taxi and tips after landing.
• Activate international usage on cards you plan to use.