A forex card is a pre-paid travel card that can be loaded with currency of your choice.
Travelling abroad and still confused whether to buy a forex card or exchange money at the destination? Experts always advice on buying a forex card. It is the handiest thing to carry while travelling abroad, particularly when one is travelling to multiple destinations.
A forex card is a pre-paid travel card that can be loaded with currency of your choice. It is a safe substitute for carrying cash especially in perilous countries. It can be used to pay restaurant bills, conveyance fares and even shopping bills very conveniently without having to worry about money conversion.
“These cards offer better rates on forex when compared to exchanging cash and travellers cheques, since the charges on currency conversion are not as high,” said Dilshad Billimoria, director, Dilzer Consultants and a Sebi-registered advisor.
Many Indians have the habit of using cash when travelling. But that does not come very handy while travelling to a different country. First, as soon as one lands in a foreign land one needs to convert it into local currency and exchange rates are always higher in airports, and second, if one does not exchange it in airport one needs to look around in the city for a money exchange. Again, exchanging currency in hotel is an expensive proposition.
Further, commenting on the benefits of forex cards, Billimoria added, “These cards offer better rates on forex when compared to exchanging cash and travellers cheques, since the charges on currency conversion are not as high.”
“The travel card is a prepaid card that can be loaded with foreign currency. It enables the cardholder to make digital payments or withdraw money from ATMs in the required currency of the foreign country while she is travelling. The most important advantage of the travel card is that it offers the customer more security and therefore, peace of mind, as compared to carrying cash,” said Sudipta Roy, Head, Unsecured Assets, ICICI Bank.
In the eventuality of loss of card, the customer is fully protected as no one can use the card without PIN. Further, it provides the convenience of loading many currencies on a single card. The user of the card can further reload foreign currency digitally, without visiting a branch, in case pre-loaded currency is exhausted, while travelling or before the travel commences. Also, the customers save on currency rate fluctuations.
“Banks like ICICI even make the travel card more attractive by providing a replacement card along with the existing one to ensure customer convenience. The bank also comes up with many lucrative offers periodically,” Roy added.
The younger generation prefers to budget their travels by using available amount in the forex card, which prevents them from overspending.
A multicurrency forex card helps when one is visiting more than one country and need to carry cash of multiple countries, which becomes cumbersome and unsafe, said Billimoria.
- Forex rates are locked and therefore, one need not worry about exchange rate fluctuations on travel
- The costs for usage of ATMs are also waived in forex cards compared to debit or credit cards
- More discount options at restaurants and train stations are offered
- If you one loses credit or debit card while travelling in another country, the hassles are more. It would involve blocking card by informing the local country in, which one lives that will be delayed due to time zone differences.
- With a forex card an auto block option by sending a message on a phone can be done instantly. Insurance benefits against unauthorised transactions are also available in a forex card
- Multicurrency cards come with a validity of 3- 5 years and can be used for multiple trips. Therefore, one need not store cash unnecessarily till the next trip
- Conversion back to local currency is also possible with a lower charge compared to normal conversion rates applicable on forex currencies
So next time you are planning a trip to the beautiful beaches of Pattaya or want to get that perfect selfie clicked at the leaning tower of Pisa, do remember to carry a travel forex card with you for a more fulfilling wanderlust experience.