Before planning a trip abroad, there are two important questions to answer- how much foreign currency should you carry and how should you carry? One should limit using cash as much as possible while travelling to a foreign country and a Forex card is a good alternative to hard cash.
Most of the banks provide Forex Cards, but before buying one, it’s important to know what it is, Forex card benefits, how it works, different types of Forex cards, where to get it, and so on. So before you apply for a Forex card at any of the banks, read this article and find out all the details about this prepaid or travel card.
What is a Forex Card?
A forex card is primarily a travel or prepaid journey card. The main purpose of using it is to carry foreign currency whenever someone goes to a foreign country and pay overseas expenses. A forex card can be filled with any foreign currency that the traveller wants. It works as the local currency of the country that you are visiting. A forex card lets you hold money electronically.
A forex card can also be used as a debit card to withdraw money from an ATM. Therefore, Forex cards can become quite handy whenever you plan to travel abroad. By using a forex card, you will no longer have to worry about carrying cash.
A forex card makes spending money in different foreign currencies hassle-free. You may also wonder what a forex card number is? Well, your forex card will be chip-based and will have a number so that the provider of that Forex card can identify it.
Where to Get a Forex Card From?
One can apply for a Forex card from an authorised forex card dealer, often known as money changers, or else, you can get it from a bank. No one needs to have an account with the bank to get the Forex card. The financial institution will provide the customer with an application that has to be filled.
The application will ask a few questions, for example, the amount of foreign currency you want to apply for, personal details, PAN card, one self-attested passport photocopy, travel tickets, and a few more details. Some banks may ask for a Visa copy as well.
You may visit the bank to fill the application, else do it online. Most of the top banks will offer both options. However, the recommendation would be to visit the bank personally and speak to the professionals just if there are some queries to be solved.
While filling the application, make sure that you choose the right amount. Once you select the amount of currency, you won’t be able to change it easily. Therefore, pay attention to it. Think about the number of days you will stay, how much you would like to spend on shopping, accommodation, and sundry expenses.
Different Types of Forex Cards
There are two types of forex cards that one can apply for. One is multi-currency, and the second is single-currency. As the name suggests, a multi-currency card can hold more than one currency. This card can hold up to 23 currencies, whereas a single-currency card can hold only one currency. If you have prepaid net banking, you will also get the option to convert funds to different currencies.
Student Forex cards are also available, which are meant for students residing in a foreign country. Student forex cards are often applied by students so that they can use them to pay expenses. There are forex cards available that are exclusively meant for destination countries and travelling.
Uses and Forex Cards Benefits
1. Low Risk
One of the top forex card benefits is that it is a low to no risk deal. When you use your normal cards abroad, often the bank will block or suspend the card under suspicious activities. You may also find someone from the bank calling you to confirm the transaction. Banks are always alert, and to make sure that their customers’ bank accounts are safe, they suspect uncommon transactions.
This is the reason why people choose to go with Forex cards to avoid such challenges. Forex cards eliminate these things and won’t let you use your credit cards, which may cause trouble. It won’t be an easy ride if your card gets blocked in an unknown country, and you are left with no money to go back to your hotel.
A Forex card is never linked to any of your bank accounts. And when the prepaid card is offered to you, the financial institution is already aware of the fact that you will use it for different transactions.
2. Travel Cashless
Travellers often travel to different countries with cash. Although it is better to keep some cash handy, it is never advisable to carry only cash when you travel. There is always a possibility of losing your wallet, and if something like this happens, you will lose your money and debit and credit cards.
You will need money to pay for your food, hotel and to make other transactions. Along with some cash, it is a better idea to carry a Forex card as well. You can use it wherever you want and travel safely and cashless.
3. Better Exchange Rates
If you compare the exchange rates of buying currencies as cash to loading currencies on your forex card, you will notice that banks always provide better exchange rates for your forex card. This means that the Forex card offers cheaper exchange rates.
Not just this, banks that offer forex cards provide attractive offers, which will let you save money when you use the forex card at restaurants, airport markets, shopping centres, and more. If you apply for a Forex card from a reliable and reputed provider, you are bound to save money.
4. Recharge Easily
Some forex cards will give you the option to recharge your forex card quickly. This option is good for those who need to travel for a longer period. The recharging option will let you reload the currency quickly and efficiently. Just choose the required value and travel without stressing about money. However, to make sure that your forex card has this option, do speak to your forex card while applying.
5. Save Yourself from Withdrawal Fee
Mostly, when you use an international debit or credit card to withdraw money from an ATM, it will include a withdrawal fee. Every time you withdraw money, a withdrawal fee will get deducted. This means that with every withdrawal, you will lose some part of your hard-earned money.
On the contrary, some Forex cards eliminate this challenge. No matter how many times you swipe your card to withdraw money from an ATM, you will not be charged a withdrawal fee. However, it is recommended to speak to the forex card provider about the withdrawal fee. Not every forex card provider will include this feature in their Forex card.
Final Words
A good forex card will ensure that the traveller is travelling with ease and without any worries. Moreover, forex cards make sure that you never run into money exchange problems when abroad. Simultaneously, many forex card providers offer attractive offers, such as cash-back offers, discounts, elimination of withdrawal fees, and more.
We hope this article has answered all the doubts regarding what forex cards are and everything in between. To sum up, forex cards are quite handy and speak to a Forex card provider to know more about the same.
| We hope our article turned out to be useful for you. For more such informative content, you can visit these linked articles as well: | ||
| how to change the name in pan card | how to withdraw pf online with UAN | Documents Required for Udyog Aadhar |
| Baskin Robbins Franchise cost in India | Chai Sutta Bar Franchise cost in India | How to cancel GST registration |
Stay updated with new business ideas & business tips with OkCredit blogs in English, Hindi, Malayalam, Marathi & more!
Download OkCredit now & get rid of your bookkeeping hassles.
OkCredit is 100% Made in India.
FAQs
Q. Is a forex card better than a credit card?
Ans. Yes, if your travel plans are extensive and span over several weeks, it is recommended to go for forex cards as the foreign exchange rate is locked at the time of initial balance.
Q. What are the benefits of forex cards?
Ans. A forex card lets you travel cashless, offers a better exchange rate, there are multi-currency foreign exchange cards available, saves you from withdrawal fee, ease of recharging, detects currency automatically, and is a low-risk option. The foremost benefit of a forex card is the low exchange rate.
Q. Which forex card is best?
Ans. The top options are:
- HDFC Bank Multi-Currency ForexPlus Card
- Axis Bank World Traveller Forex Card
- HDFC Regalia ForexPlus Card
- Thomas Cook Borderless Prepaid Card
- ICICI Bank Multi-Currency Platinum Travel Card
Q. What is the difference between a forex card and an international debit card?
Ans. One can use an international debit card to pay for expenses in a foreign country, but the main difference will be the exchange rates. A forex card always offers a better and cheaper exchange rate compared to an international debit card.
![Series Funding [Types, How it works and More!]](https://okcredit-blog-images-prod.storage.googleapis.com/2021/02/seriesfunding1.jpg)
