Understanding the charges of forex card while doing transaction in a foreign countries.

 Traveling overseas is exciting, whether it's for work, pleasure, or academic purposes, and managing money while you're away from home is undoubtedly a key component of your travel preparation.

Do you prefer to use debit/credit cards, Forex cards, or cash exclusively while transacting?

There will always be fees associated with every choice, regardless of which one you choose. Making a well-informed choice will enable you to incur the least amount of overhead costs.

 When visiting another country, having a Forex travel card on hand is a smart decision.

It is fairly simple to acquire and is available from any licensed retailer. On a single forex card, different currencies may be loaded. Loading just one currency is preferable if you are traveling to a single nation.

You should be aware of the various fees while using a Prepaid forex card, just like you should be careful of everything else. Once the card has been loaded with foreign currency, you won't need to worry about conversion fees. Although there is no price for using the card to swipe at a merchant location, there are fees associated with transactions like balance inquiries, etc.

Several usage-based fee instances are provided below:

• There is a fee associated with using your foreign exchange card to make an ATM withdrawal.
• Checking your balance at a banking institution will cost you a balance inquiry fee.
• Free worldwide SMS warnings are available when you're on board.
• Within India, a replacement card is available for free.
• Any time you need a new international card while traveling abroad, it is provided free of charge.
• Request reports for no cost when receiving statements.
• Retrieval fee for transaction slips - Charge for getting a transaction slip out of an ATM.
• If the transaction currency is different from the currency loaded on the card you can be charged with cross currency markup charge. You can use your card to make purchases from merchants and withdraw cash in any currency.
• Inactivity fee

All forex transaction in India attracts GST, where rate depends on the amount involved. Apart from that, Tax collected at Source (TCS) is applicable if amount spent on foreign exchange exceeds ₹ 7 lakhs (under LRS) during the financial year.  However, TCS can be claimed back in IT Return.