Unused forex card balance: Should you convert it into Rupees or hold on to it?

A forex card is a prepaid card that travellers can load with foreign currency before travelling abroad. It can be used to pay for purchases at shops, restaurants and other merchants, as well as withdraw cash from supported ATMs.

But what should you do if you return to India with money left on your forex card? Should you keep the balance for your next trip or convert it back into rupees? The answer depends on your future travel plans, the card’s validity and the charges levied by the issuer.

“For instance, if a student returns to India with $1,500 on a forex card and does not plan to travel in the near future, it may be better to convert the remaining balance and encash it through an authorised provider, after checking the applicable rules and charges. However, if another overseas trip is already planned, retaining the balance could be practical, as it may help avoid a reload fee, subject to the card’s validity and the issuer’s terms,” said Pavan Kumar Kavad, managing director, Prithvi Exchange.

Another factor to consider is the card’s validity. Depending on the provider, charges may apply for replacement, inactivity, ATM withdrawals, reloading, currency conversion or encashing the remaining balance. These charges can vary across issuers, so it is important to check the card’s terms before deciding what to do with the money.

“Customers should check the card’s terms before deciding whether to keep the balance or withdraw it. If there is a genuine upcoming travel requirement, retaining the balance can be useful. If there is no immediate use, encashing the balance through an authorised provider is the right way to go about it,” said Kavad.

Ultimately, what you do with the money left on your forex card depends on when you plan to travel next. If another trip is coming up, keeping the balance may save you the cost of reloading the card. If you have no travel plans, consider encashing the remaining amount after checking the applicable charges and the card's terms.