What happens if I don't use my forex card?

Consequences of Inactivity on Forex Cards

Forex cards, touted as convenient tools for international travelers, necessitate regular usage to avoid potential charges. Overlooking the use of these cards can result in inactivity fees.

Inactivity Fees Explained

Forex card issuers impose inactivity fees to cover administrative and maintenance costs associated with dormant accounts. These fees vary among issuers but typically range from a few dollars to tens of dollars per month.

Reasons for Inactivity

Several reasons can lead to forex card inactivity:

• Forgetting to Use the Card: Amidst the excitement of travel, it’s easy to overlook the use of a forex card.
• Extended Travel Breaks: Travelers who take extended breaks from international travel may not utilize their cards for prolonged periods.
• Switching to Other Payment Methods: Some travelers prefer alternative payment options, such as local cash or credit cards, during their journeys.

Consequences of Inactivity

In addition to incurring inactivity fees, prolonged non-use of forex cards can have other consequences:

• Expired Cards: Forex cards typically have an expiration date. If the card is not used before this date, it becomes void.
• Frozen Accounts: Issuers may freeze inactive accounts to prevent unauthorized transactions. This can be inconvenient if the traveler needs to access funds during an unexpected situation.
• Negative Impact on Credit Score: Some forex card issuers report account inactivity to credit bureaus. This can adversely affect credit scores, especially if the card is linked to a credit line.

Avoiding Inactivity Fees

To avoid inactivity fees, travelers should ensure regular usage of their forex cards, even for small transactions. If extended travel breaks are anticipated, it’s advisable to contact the issuer to inquire about options for suspending the card or minimizing fees.