When you plan on traveling to a foreign destination, foreign exchange rate is among the main things to consider. There has been a lot of debate on how much money you should convey to a foreign nation and in what mode. Plastic money, like international credit cards and debit cards, are quite well known among travelers yet they have the disadvantage of high fees and charges over or more the exchange rate. The most convenient and inexpensive approach to convey money abroad is a Forex Card.
A forex card is a prepaid travel card offered by banks to people who are traveling to one or more international destinations. As per the user’s needs, the card can be loaded with a single foreign currency or multiple currencies.
How a Forex Card Scores Over Credit/Debit Card?
On the off chance that you are wanting to travel to a foreign destination, here is the reason you should consider prepaid travel cards for conveying money-
- Wide Acceptance-Forex cards are accepted at extravagant stores and restaurants as well as at smaller shops which makes it a perfect choice for vacationers.
- Burden Multiple Currencies-If you are traveling to multiple countries in a single trip, you can purchase a multi-currency forex card. On this card, you can stack the currencies of the considerable number of countries you will be visiting.
- Inexpensive-Prepaid travel cards provide a hedge against currency change. This means the sum loaded on the card will be exchanged at the prevailing rate of that day. Users can purchase a forex card on a day when the rates are comparatively lower so as to get most extreme benefit.
- Lower Charges-Prepaid travel cards convey lower fees and charges as compared to internationally accepted credit/debit cards. One such charge is the foreign exchange increase fee. Credit/debit cards charge a fee of 2% to 5% as the forex increase fee whereas forex cards don’t draw in such charges.
Safe-Carrying a card is consistently safer than conveying wads of money. Additionally, on the off chance that you lose the card in case of loss or theft, you can call your bank’s customer care and get it blocked in a flash to ensure that no one can misuse it. A number of banks additionally offer the office of card replacement under such circumstances.
Things to Keep in Mind when Buying a Forex Card
Much like other money related items, forex cards additionally come with a set of terms and conditions. Hence, it is imperative to choose a travel card shrewdly with the goal that you don’t have to regret later. Here are a few focuses that you should keep as a main priority at the time of purchasing a forex card.
1- Understand the Fees and Charges- There are several fees and charges associated with these cards, for example,
- Card issuance fee
- Balance Enquiry Charges
- Replacement Card Fee
- Statement Request Charges
- Cross Currency Mark-up Charges
- International SMS Alert Charges
- Charge Slip Retrieval Charges
- Inactivity Fees
At the time of getting a forex card, you ought to get some information about such charges to ensure that you don’t end up paying more by utilizing it. In the event that you think the charges are excessively high, consider setting off to a different bank.
2- Swipe in the Same Currency as Loaded- When you are swiping your forex card at a merchant store, make sure that the payment is made in the same currency as you have loaded. For example, on the off chance that you have loaded your card with US Dollars yet the payment is made in Indian Rupee, then you will acquire critical cross currency charges. Additionally, when you are utilizing your travel card at an ATM, select the credit card choice as there would be no alternative for ‘Forex Card’.
3- Keep your card safe- Skimming is one of the most widely recognized types of misrepresentation on cards. This means someone clones your card and when he deceitfully makes the payment, it will be charged to your account. Hence, it is critical to keep your card safe from such activities. Try not to hand over your card to anyone else for swiping. Numerous banks are propelling contactless forex cards which offer greater security as you can ‘tap and pay’.
4-Check Insurance on Your Card-Like credit cards, forex cards additionally offer some insurance cover. There might be insurance protecting you against personal accident, loss of checked baggage at the air terminal and against credit card misrepresentation. You should affirm with your bank about what type of insurance cover is being offered on your card.
Would it be a good idea for you to Travel Solely on Forex Cards?
It isn’t advisable to convey just Forex Cards for your international travel. You ought to likewise convey some forex money wherever you are going. Indian currency isn’t widely accepted across countries so it is safer to convey some money to help you in case of emergency. Plan your expenses such that 80% is spent through forex card and 20% goes out as money. For money conversion, you ought to go to a money changer in India as it can get comparatively costlier to exchange it at the air terminal.
Forex cards are, by a wide margin, the most convenient and economical method of conveying foreign currency. You don’t need to be the customer of a bank to purchase a forex card. Just stroll into a bank branch with money and purchase a forex card for the currency you need equivalent to its value in Indian Rupee.