Travelling Abroad? 5 Forex Traps Costing You Thousands

Indian travellers are spending more abroad after the TCS cut, but hidden forex fees — markups, conversion charges, and ATM fees — are quietly draining travel budgets. Here's how to protect your money.

Here's what happened: The TCS rate on overseas tour packages and forex card top-ups above ₹7 lakh was reduced, making international travel slightly cheaper for most Indians.. Despite lower TCS, Indian travellers remain anxious about hidden forex costs — including currency conversion markups, ATM withdrawal fees abroad, and dynamic currency conversion traps.. Banks and money changers often charge a 2–4% spread over the mid-market rate, which on a ₹5 lakh trip can silently cost ₹10,000–₹20,000 extra..

What you should do: Compare forex rates from at least 3 sources — your bank, a forex card provider like Wise or BookMyForex, and airport kiosks — before loading travel money.. Avoid Dynamic Currency Conversion (DCC) at foreign ATMs and POS machines; always choose to pay in the local currency, not Indian rupees, to skip hidden markups.. Load a multi-currency forex card before departure and carry only 10–15% of your travel budget as cash to minimise conversion losses and ATM fees abroad..

Pro tip: Airport forex counters charge up to 6–8% above the interbank rate. Even ordering forex online and picking it up at the airport can save you ₹3,000–₹6,000 on a medium-sized trip.