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IOF Incidence on prepaid cards in foreign currency

Pessoas usando cartão visa internacional
Prepaid International Visa Card

Hello traveler, there are different ways to take your foreign currency when traveling abroad. Some prefer cash while the more technological prefer to load their prepaid card with the amount of currency they will need and use it both for withdrawals and for purchases at card machines.

Cards can be Visa or Master Card.

Although an exchange operation is also carried out to load or top up the card, it is a different product from the currency itself. With the card you can view your balance and statement, use up to 6 different currencies, block it in cases of loss or even theft and thus become a safer product. But not everything is rosy, the IOF (tax on financial transactions) that is levied on the card is a little steep. This tax, which was once 0.38%, has reached 6.38% since mid-2013. However, from the turn of 2022 to 2023 the IOF fell to 5.38% and will thus fall by 1% each year, following the new rules for exchange operations valid from the beginning of 2023. So, from January 1st From 2024 the new rate will be 4.38%. A good suggestion is to buy half of the foreign currency in cash and the other half on the card, this way you will have an average tax cost of 2.74% (from January 2024), since the IOF of the currency in cash is fixed by 1.10%.

This way, you reduce your tax burden, take some cash in case you need to take a taxi or something similar and also take your card, which is rechargeable and if you need more money on your trip, just top it up. Now just get organized and stop by Porto Velho Câmbio, or contact our team via WhatsApp 69-99901-2503 and request your foreign currencies.

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