A forex card, also known as a prepaid travel card, is a pre-loaded card that allows access to funds in another currency. The card can be loaded with a single currency or multiple currencies; some cards allow up to 15 currencies to be loaded. One can use it to get cash in foreign currency, check balance, and pay for purchases in foreign currency. One can also add money to the card to meet all needs. Banks and even companies like American Express and UAE Exchange and Financial Services offer these cards.
Forex cards are largely divided into two types – single currency cards and multi currency cards.
- Single currency forex card : A single currency forex card is one that can only be loaded with a single foreign currency. When travelling to a specific country, one can load this card with a currency.
- Multi-currency forex card : As the name implies, this card can be preloaded with a variety of currencies.
When travelling in a foreign country, a forex card is the best option. There are several advantages to travelling with a forex card rather than wads of cash or looking for places to exchange currencies.
- One is more likely to get a better exchange rate if one uses a forex card. Purchasing a forex card from a bank is a less expensive alternative to having currency converted.
- Most banks have a variety of forex cards to choose from. To purchase a forex card, one does not need to have an existing bank account with the bank.
- When one buys a forex card, one can take advantage of a variety of deals, offers, and discounts that most banks provide.
- Carrying a forex card is far safer than carrying cash. It is equipped with chip and pin technology, which adds an additional layer of security. Furthermore, if one loses a forex card, one can have it blacklisted right away to prevent it from being misused.
- If after returning from the trip,there is balance left in the card, it can be cashed at current exchange rates.
There are several credit cards available in India that provide appealing benefits such as reward programmes, cashbacks, fuel savings, insurance benefits, travel benefits, and so on. Choosing the right credit card for lifestyle needs will allow one to get the most out of a best credit card. A forex travel card outperforms a credit card in the following ways :
- Minimal foreign currency mark-up fee
When one uses a credit card or forex card to make a purchase outside of the home country, one will be charged a mark-up fee. Multi-currency forex cards allow one to load money in multiple foreign currencies on the same card at the same time.
- Protection from volatility in forex rates
When using a credit card, the conversion rates are calculated at the time of the transaction.
- Forex cards are cost-effective
When one purchases a forex card, one will be charged an issuance fee (the card’s cost) as well as a joining/renewal fee. one must pay joining and annual fees when buying a credit card, especially if one plans to travel abroad.
- No need to pay forex conversion charges
When one uses a credit card to make a purchase outside of India, the Indian currency is converted to foreign currency. One is charged a forex conversion fee for each transaction. Foreign currency is preloaded on forex cards, meaning that every time one spends in foreign currency rather than Indian currency.
A forex card has a number of advantages. It’s the most cost-effective way to carry and pay in foreign currency internationally; it’s safer than cash; it’s less expensive than other cards but just as convenient as the best credit card in India or debit cards; one can use it for multiple trips; and can get special benefits and discounts wherever one goes.