Forex Card Fees and Charges

If you are looking to purchase a forex card, you need to be aware of the fees and charges associated with these cards. Knowing about forex card charges beforehand can help you make informed decisions and get the most of these cards.

 

Read on to learn about forex card usage charges, such as forex conversion charges, forex card withdrawal charges and much more.

Here are the forex card charges and fees you need to know about.

 

1. Issuance Charges

Issuance charge is a one-time fee applicable when you apply for a forex card. This fee generally covers the cost of setting up your card, processing your application, and activating the card for use. 

2. Reload Fee

Reload charges are applicable when you  add more funds to your existing card in a foreign country. You need to pay the reloading fee every time you add additional funds to your forex card. 

3. Replacement Fee

You can get a new card if your current forex card is damaged, lost, or stolen. The replacement fee covers the cost of issuing a new card. 

4. Cash Withdrawal Fee

This charge is applicable when you withdraw cash from an ATM in the foreign country you're living in.

5. Forex Card Balance Enquiry Fee

The balance enquiry fee is applicable when you check the balance in your forex card online or through an ATM. Charges for checking the balance of your forex card vary in different currencies like US$0.50, €0.50, etc.

6. Cross-Currency Fee

Cross-country fee is applicable when you transact through your card in a currency different from the one loaded on your card.

Check out the various limits applicable on forex cards.

 

1. Amount Loading Limit

This is the maximum amount of foreign currency that you can load in your forex card to make transactions abroad. The maximum loading amount for a forex card is set to $250,000 for a financial year.

2. ATM Withdrawal Limit

Issuers set a specific maximum limit of cash withdrawal from ATMs. Generally, the daily limit for forex card ATM withdrawal varies in different currencies like US$5,000, €5,000, AU$6,000, etc.

3. Point of Sale (POS) and E-commerce (ECOM) Limit

The point of sale and e-commerce limit tells you the maximum amount you can spend using your card on merchant and e-commerce platforms.

Generally, a Goods and Services Tax or GST of 18% is applicable on forex transactions. Here are the tax implications on your forex card transactions.

 

1. Foreign Currency up to ₹1,00,000

When you sell or purchase foreign currencies up to ₹1,00,000, you need to pay a percentage of the amount or a flat fee as a tax. 

2. Foreign Currency above ₹1,00,000 and up to ₹10,00,000

If you sell or purchase above ₹1,00,000 with a maximum limit of ₹10,00,000, you need to pay a percentage of the amount exceeding ₹1,00,000 and a percentage of the amount under ₹1 Lakh. 

 

For instance, an issuer charges 0.50% for spending under ₹1 Lakh and 1% for the amount above that. Now, if you have spent ₹5 Lakhs, you will be charged 0.50% on ₹1 Lakh and 1% on ₹4 Lakhs, the total amount to ₹4,500.

3. Foreign Currency above ₹10,00,000

When you sell or purchase foreign currencies above ₹10,00,000, you need to pay a flat fee and/or a fraction of the amount you spent. This will also vary depending on the issuer you choose. 

 

Having adequate knowledge about the forex card fees and charges is essential as they can help you make the right decision.

 

Remember, the taxes, fees, and charges will vary depending on the issuer you choose.  So, make sure you research and compare various forex card options before you opt one.