International travel from India has grown sharply in recent years and so has the need for smarter ways to spend money abroad. While prepaid forex cards have long been the go-to option for travellers, a newer alternative is rapidly gaining ground.
We are talking about zero forex cards. These cards promise lower costs, greater transparency, and a more seamless overseas spending experience. But how exactly do they differ from traditional prepaid forex cards, and are they really better than the latter? Let us find out.
What Are Zero Forex Cards?
Zero forex cards are debit or credit cards that allow you to spend internationally without charging a foreign exchange markup. They eliminate the forex charge, letting you spend much closer to the real exchange rate.
When you make a purchase abroad or on an international website, the amount is converted without the usual bank markup. You pay only the base network exchange rate, often very close to the live interbank rate you see on Google, saving 1–3.5% per transaction.
Benefits Of Zero Forex Cards Over Prepaid Cards
Zero or Near-Zero Forex Markup
The defining feature of these cards is the absence of foreign exchange markup, which can otherwise range between 1% and 3.5% on standard cards. This alone can lead to substantial savings on overseas spending.
Real-Time Currency Conversion
Transactions are converted at real-time exchange rates, often close to interbank or network rates. This makes pricing more transparent and predictable for travellers.
No More "Rate Anxiety"
With prepaid cards, travellers often
On the other hand, zero forex cards use the live market rate. While rates fluctuate, you avoid the high margins that banks bake into prepaid card loading prices.
No Pre-Loading Required
Unlike prepaid forex cards, there is no need to estimate expenses and load funds in advance. You spend directly from your linked account or credit limit, reducing the risk of unused balances.
Do remember that while the forex markup is zero, the overseas bank might still charge a flat fee for cash withdrawals.
Zero forex cards are particularly well-suited for frequent travellers, business travellers and digital-savvy users who value convenience and transparency. Before choosing a card, travellers should compare features such as ATM charges, network acceptance and customer support.
ALSO READ: Climate Change Costs The World Over $250,000 A Minute — Here's What It Means For India
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
