By Sudarshan Motwani
Each year, millions of Indian travellers step out into the world—but end up taking outdated travel money habits with them. These habits cost them far more than they realise. Here are the four most expensive forex myths Indians believe and what they should do instead.
Myth #1: Forex means 20% TCS
Truth: Most travellers don’t pay tax collected at source (TCS) and even if you do, it’s reclaimable.
For foreign exchange spends up to Rs 10 lakh in a financial year, there’s no TCS. Beyond that, the rate is purpose-specific—5% for education or medical expenses. And any TCS paid can be adjusted against your income tax when filing returns.
Smart Move: Don’t let tax myths deter you. Forex cards are efficient, and also tax smart.
Travellers today compare airfares, hotels, and experiences but often skip comparing their forex options. That’s where the real savings lie. It’s time to retire old money myths and embrace better, tech-powered travel solutions.
Myth #2: Cash is king when travelling abroad
Truth: Cash is costly, risky, and outdated
While you’re allowed to carry up to $3,000 (or equivalent) in foreign currency, relying primarily on cash is not practical. It’s easy to lose, hard to recover, and offers zero visibility or control. Buying foreign currency in cash is 2–6% more expensive than loading a forex card due to inventory costs and supply-demand gaps.
Smart Move: Carry 10–20% of your travel money in cash for minor expenses and load the rest on a forex card which is specially designed for foreign travel.
Myth #3: All forex cards are the same
Truth: What you don’t know about your card is probably costing you
Forex cards differ significantly in pricing, features, and usability. Many traditional providers add 2–3.5% markups, offer limited currencies and have outdated reload processes. In contrast, modern fintech platforms provide app-based cards with zero markup rates, instant reloads, robust security, and full cost transparency.
Smart Move: Skip the bank queues. Choose a fintech-powered forex card with zero mark-up and real-time control.
Myth #4: Your credit/ debit card works fine
Truth: “Convenient” doesn’t mean “cost-effective.”
Most banks charge 1–3% foreign transaction fee on every swipe. On top of that, merchants may apply Dynamic Currency Conversion, converting your bill to INR at inflated rates—at times as high as 12%.Since these are INR-denominated, you’re exposed to currency exchange fluctuations. For instance, the Euro has risen by nearly Rs 3 in just the last 10 days.
Smart Move: Forex cards are a smarter alternative. Preloaded in your destination’s currency, they eliminate hidden charges like foreign transaction fees, DCC markups, and exchange rate volatility—giving you full cost control and peace of mind abroad.
The writer is founder & CEO, BookMyForex.com
