Traveling abroad is a dream for lots of people. For some, it is education, for others, it is work, and a good share of people dream of international vacation. In either situation having a forex card comes in handy. We shall look at the key features to help you better understand its use and choose the right one for you.
What is a Forex card?
- It is a card that allows you to hold the currency of a different country. Once you have loaded your card you can simply use it as you would use any other debit or credit card. With your PIN it can be used to withdraw money from the ATM abroad to get the local currency or it can also be used to pay at restaurants or shops.
- Let’s say you have issued a Forex card and loaded it with 500 USD. On using the entire amount you can reload the card with your desired amount and continue using it. Every time you recharge your card a flat fee is incurred along with taxes.
Different types of forex card
- Broadly the forex card come in two variants, multicurrency and single currency. As the name suggests multicurrency allows you to hold multiple different currencies at once. This means you can hold 100 Euro, 200 USD, and 200 Pounds all at once. This is ideal for people who tend to travel to different countries regularly. The number of currencies you can hold depends upon the bank from which you have issued the card.
- A single currency only allows you to load your card with a particular currency. This is ideal for people going for work and students to a specific country.
- Apart from this many banks offer a variation of the above card types. HDCF bank for example offers a dedicated forex card for international students under the name ISIC student forex plus card. It has unique features such as allowing up to 3 different currencies with discounts across various services and products which are essential for students.
Benefits
One time charges
Most credit cards and debit cards do allow you to carry out international transactions these days. But this option even though might be convenient, could turn out to be very expensive. Usually, with international debit and credit cards, you are charged per transaction. So let’s say a bank charges you 3.5% on an international card. This means for every transaction you make, however small you will be charged 3.5% of the total amount. In the case of a Forex card once you have loaded with a certain amount of desired currency there are no more charges for using it. [except ATM withdrawal charge]
Immunity against fluctuating exchange rate
The value of currencies between two countries fluctuates daily. Hence for every international payment, the exact amount charged will be determined based on its current exchange rate. Forex cards provide you immunity against fluctuating rates. Assume you want to load your Forex card with 500 pounds. The exchange rate applicable to it will be based on the date and time of loading the amount. Once you have loaded your card that amount gets frozen. This means even if in future pounds get more expensive your Forex card will still hold 500 pounds.
Easy management
All banks offer you to reload and check your transaction history from their mobile application. Making it easier for a consumer to maintain their financial records. Also using mobile banking you can reload your card from your comfort.
Conclusion:
In summary, Forex cards are a smart alternative to carrying large sums of cash or relying solely on credit cards, providing a secure and efficient way to manage your finances while traveling abroad. From zero liability protection to easy reload options, Forex cards deliver convenience, security, and peace of mind, making them an ideal choice for all your international travel needs.
By offering competitive exchange rates and the ability to lock-in rates in advance, Forex cards allow travelers to effectively manage their expenses and avoid unnecessary costs.