Forex Card
You are going on a vacation abroad, and you are wondering how much currency cash you will require carrying. Well, your credit cards will be extracting a lot of money as in-service charges, so what is the next easy option? Forex cards. Forex cards are the preloaded foreign currency card – a kind of prepaid card that is widely used for making any kinds of payments abroad. The card can be used for shopping, restaurants, online shopping, paying cab rentals, accommodation, etc. The card can be loaded with a specific currency or multiple currencies as well. It is one of the convenient ways for people who are frequently travelling abroad.
The reason behind the rising popularity of these Forex cards is a well-situated arrangement for professionals as well as for those who find it not safe to travel carrying wards of forex cash. Also, this makes it risky and swapping other cards; the charges are 3 to 6% high for any overseas transactions.
How Does It Work?
The Forex card can be purchased from the bank. Today majority of the banks deal in this type of prepaid travel card. The card comes preloaded with the funds you suggested. For example, if you are going on a tour to European countries like France, Paris, England, etc. the said currency will be filled in the multi-currency card. The card is prepaid as per the said date currency exchange rate. The card automatically detects which country you are swiping it. The balance of the card can be refilled by bank transfer of funds.
There are one-time activation fees, and you are all set to go. While shopping abroad or paying for expenses all you have to do is a swipe at the POS machine and the money is then deducted from your card. It is like how you use it; the balance reduces. There will be a small number of fees charged to you if you happen to withdraw cash from the abroad ATMs.
The Advantages of Using Forex Card
There are several benefits of using this card when compared with other credit and debit cards:
The card offers better exchange rates
Bank offers a cheaper alternative in terms of this prepaid card than buying a cash currency. Typically the difference is 50 paisa per exchange rate for the card and for other cash and cards it is up to Rs.1.50 – 2.
The card is safe
Other than carrying an award of cash currency, it is always a safe option to carry a preloaded card of multiple currencies. If the card gets stolen or does not work, all you have to do is a block and freeze the balance. The other card is issued with your original balance activated, making it convenient and hassle-free to travel abroad.
The card comes with locked-in exchange rates.
Let’s say if you have preloaded the card with 1000 Euros the value in the card will remain the same regardless of the fluctuations in the Euro-INR exchange rate.
It can carry multiple currencies.
You can pre-load the card with multiple currencies without any hassle. Today, prominent banks of India are offering a forex card that allows you to fund it with 16 – 23 different currencies at a stretch. It includes Euro, USD, AUD, NZD, SAR, Singapore Dollars, Thai Baht, AED, United Kingdom Pounds, Hong Kong Dollars, Yen, and Denmark Krone.
No additional fees /charges
Unlike other credit and debit cards, this card does not charge you exorbitant fees. There is only a one-time activation fee which is a nominal one, and you are good to go.
The card is universally accepted.
Since it is a multiple currency card, it can be used in different countries across the globe. Unlike traveller’s cheque which is now an outdated payment and most of the countries now deny it, the card makes it easy and convenient mode of payment for your all abroad shopping spree, eating expenses, and even cab payments. In fact, you can widely use it for online transactions abroad, like ordering products from an eCommerce website.
No currency conversion fee
A dynamic currency conversion fee is not applicable when you swipe it abroad. However, this is not the case if you happen to use credit and debit cards. The transaction cost is next to minimal compared to other payment modes.
Different Types of Forex Card
The card is available for various purposes depending on the user requirements. If the individuals are frequent travellers having a multiple currency card is beneficial. For students who are studying abroad and working can issue student forex cards, and also there is also a prepaid card available specifically for pilgrimage purposes like if an individual or a family is going to a “Haj Pilgrimage”. Hence, the card caters to the different individuals making it easy, safe, and secure to make transactions abroad.
Getting a Forex Card
To avail of this prepaid card of your choice, you need to apply for the forex card application. It can be done from your bank’s website, or you can personally visit the branch and get the information. There is a small formality like submitting a declaration form along with your passport copy along with the visa and ticket.
You have to pay the Indian currency conversion amount in exchange for the currency you are willing to preload in the card. There is a minimal fee for issuing the card, and once the transaction is processed, the card is activated instantly.
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