You have finally been admitted to a university in North America. In a few short weeks a new chapter in your life begins. Months of hard work and years of preparation led to here. But how do you actually pay for anything abroad? You can’t use UPI and your trusty SBI and ICICI debit cards wont work easily.
You either need to spend cash or use a forex card for students studying in the USA. Both have benefits and drawbacks. This article explains forex cards vs cash debate in a simple way. It will help students understand what works best in real life in the US and how to plan before leaving India.
What is a forex card?
Most students in India have heard of debit cards and credit cards. But few know about forex cards.
A forex card is a prepaid card for international travel. It can be loaded with multiple foreign currencies and used to pay at POS (point-of-sale) abroad seamlessly.
They look exactly the same as debit and credit cards with the same form factor, logo of Visa or Mastercard, a magnetic strip and an electronic chip for NFC transactions.
Once a forex card is loaded with dollars, you can use it directly without converting money every time. This makes spending easier to manage.
Note: Read about the best forex card here.
Get your forex card here.
Why do Indian students studying abroad need a forex card?
Students primarily use forex cards because it reduces the need to carry cash around with them. But that is not all. Here are the key reasons why a forex card is useful:
Locked-in Rate
A forex card’s value is locked in on the date of purchase. Currency fluctuations do not affect it. That can save you a substantial amount of money over 12 – 24 months stay in the USA. The card can be reloaded whenever needed and you can track spending through statements and apps.
Explanation:
If you are using a debit or a credit card in India, it is usually denominated in INR. That means all foreign currency transitions are converted to INR at the end of day rate. And that is not all. The conversion rate changes with the decline of the rupee.
Atul Srinivasan (name changed) arrived in the USA for his MS in August 2025. When he arrived he paid ₹87.05 per dollar on his international credit card. Today he is paying ₹92.4 as the rupee has declined sharply. His annual expenses for boarding and food would be $30,000. If he had loaded his forex card with the entire amount in Delhi he would have saved at least a lakh in rupee depreciation.
“The Indian rupee is one of the weakest currencies in Asia .. it paves the way for speculators to come in and short the rupee,” – Anindya Banerjee, Senior Vice President of Currency at Kotak Securities
No OTP Hassle
Due to security reasons, RBI has mandated that Indian cards use an OTP for online transactions. Even a high value purchase from a shopping mall might necessitate a phone call verification. That is not possible if you are in the USA or Germany. Forex cards are entirely free from such hassle. Swipe and you are ready to pay.
Lost/Damaged Card Replacement
Debit and credit cards might be lost or damaged. The replacement will be sent to the postal address on Aadhar Card / KYC papers. Your parents then have to activate the card, and then courier it to you. With a forex card it can be blocked immediately and you get a replacement card issued quickly.
No Markup
Traditional cards charge a 2%–5% markup fee (plus GST) on every transaction. That is a steep addition to your cost of studying abroad. Using a forex card means zero markup and you can spend every cent you loaded. It is one of the best forex cards for students studying in the USA.
No Annual Fees
A debit or credit card has a large annual cost. It is between ₹3,000 and ₹12,000 (plus GST). In return you get some reward points. If you want to keep the cost of studying abroad in check, a forex card is the way forward.
These features make forex cards a popular choice for students studying in the US.
Is cash dead in America?
Cash is not yet dead in the USA. but it is fading fast. While UPI has made India a nearly cashless economy recently, USA has been moving to being one for many decades. Americans primarily use credit cards, debit cards, and digital wallet apps (like Apple Pay, Google Pay, Venmo) for transactions.
These are the few situations where paper money is still king in USA:
Tips
The tipping culture is deeply ingrained in America. You are expected to tip everyone from the service industry – servers, bartenders, hairdressers, delivery drivers etc. a cash tip is preferable.
Emergencies
If your card is declined after you had a burrito and coffee it can be quite embarrassing. Keep about $50 cash on you at all times.
Small Vendors
You need cash for small expenses like laundromats, car washes, and vending machines. Many vendors even have a $10 – $20 minimum for card transactions.
How to plan your “Financial Stack” for studying in the USA?
So how much cash do you carry? How much should you invest in a forex card?
Our recommendation – When planning your “Financial Stack” for arrival in the USA, a split of 5 – 10% Cash and 90% Forex Card is ideal for initial living expenses.
Let’s again look at Atul’s experience. He studies at Rutgers University (NJ) and stays at an off-campus apartment he shared with two buddies. His expenses are about $2,700 per month.
Due to the decline in rupee versus dollar, Atul has decided that in the second semester onwards he will use a forex card for students studying in the USA. Here is his financial stack for 2026.
Level 1: The Primary Forex Card (70% of funds)
Atul has loaded his zero markup forex card with $20,000. It’s ideal for rent, groceries, textbooks, and that inevitable IKEA run. Atul also spends a fair bit of time at a bowling alley and a donut shop. His contactless (NFC) payment card works brilliantly.
Level 2: The Secondary Forex Card (25% of funds)
Atul has also purchased another forex card. It can be easily topped up from his bank account back in India. He has deposited $7,500 in this card.
Level 3: Cash Buffer (5% of funds)
Atul maintains a cash balance between $1,200 and $1,500 at all times. He has $100 in his wallet and the rest tucked away safely elsewhere.
Level 4: Credit Card (backup)
Atul has an add-on credit card from ICICI with a credit limit of ₹2 lakhs (about $2,200). His father is the primary account holder. This was his primary means of payment before buying a forex card. Now he keeps it as a backup.
Level 5: The Digital Wallet
Atul cannot sign up for Venmo. He does not have a US bank account and Social Security Number. For the moment he is not considering Apple Pay and Google Pay (US version) wallets because the opportunity cost of compliance is too high for making small payments. If Atul receives a H1-B visa he will sign up for a digital wallet.
But some of his friends are using US based digital wallets.
The Verdict
Hopefully by now you have understood that the forex card is the clear winner for 90% of your needs. It saves you money and is very convenient. If you would like to know more or have questions please ask us at GradRight. We are always there to help you in every way.
