An international trip requires careful planning about a whole bunch of things - hotel reservations, packing, crafting the perfect itinerary, booking flight tickets, and the likes. Another major decision revolves around picking the best way to carry the foreign currency for seamless transaction experience while abroad.
The availability of multiple options such as cash, credit card, debit card, Forex card can complicate things for you. While carrying bundles of cash can be extremely inconvenient and unsafe, swiping a domestic credit card overseas is a pricey affair. Credit cards generally charge high currency conversion charges that can send your travel budget out of whack.
This is where a Forex card saves the day.
What is a Forex Card?
A forex card is a made-for-travel prepaid card, which is loaded with one or more foreign currencies of your choice. Once loaded, it works just like your regular credit card but with added benefits. What makes a Forex Card convenient and safe? It has a chip and PIN for security and generally expires within 3-5 years. You can easily transact abroad and even withdraw cash from ATMs in foreign currency.
You can also load several currencies if you are travelling to multiple countries. You don’t need to stand in queues to exchange or buy currency. IndusInd Multicurrency Forex Card is one such card which can be purchased through online portal IndusForex, where you can apply for forex card online.
Here is why you should choose a forex card in place of a credit card for international travel.
No Forex Conversion Charges
When you use a forex card, no foreign exchange conversion charges are applied for the currencies already on the card because they are locked at the time of loading the card. Therefore, you are transacting in foreign currency rather than Indian currency.
In the case of transactions using a credit card, the Indian currency undergoes conversion and a forex currency conversion fee is charged every time.
Nominal ATM Cash Withdrawal Expenses
If you use a credit card at an ATM overseas to withdraw cash, a few charges will be applicable along with taxes. The cash advance fee or withdrawal fee can cost you up to 3.5% of the withdrawn cash amount. You’ll also need to pay extra for currency conversion charge for ATM transactions with a Credit Card.
A forex card, however, has a minimum cash withdrawal fee which is much lower than that charged on a credit card. But, there is also a predefined limit on cash withdrawal limit on forex cards.
Protection from Instability in Forex Rates
While using credit cards for foreign transactions, you can never be sure of what amount you will be charged as the prevailing forex rates will be enforced in real-time plus additional charges. This can burn a hole in your pocket very quickly.
In case of a forex card, you become immune to the volatility of forex rates which tend to be dynamic. When you load the card with the intended forex amount at a fixed rate, all your further transactions are debited from total amount of loaded forex. This gives you a clearer vision of cost and helps you plan a budget accordingly beforehand.
Forex Cards are Flexible
Forex cards are way more flexible than credit cards. Normally, overseas credit card payments are charged with a mark-up fee ranging from 2-3.5% of the transaction value. A forex card does not charge this fee provided it is used in the same jurisdiction or the currency it is loaded for.
Thanks to its flexibility,IndusInd Multicurrency Forex Card can be loaded with 14 currencies depending on your needs. Thus, if your trip involves visiting several multiple countries, save yourself from the mark-up fee. These are also easily reloadable through an online portal IndusForex, come with 24x7 support and you can get real-time notifications on your phone or email.
A forex card is a great option to curb your currency exchange worries while you plan an international trip. It’s easy to use, safe and remarkably cost-effective for cross-currency transactions. Also, you don’t need cash and credit card as a backup in case you run out of balance. You can also reload the Forex Card with currencies online.
You can easily purchase a multi-currency forex card as most banks provide this service nowadays. If you want to avoid high cross-currency conversion costs and save your hard-earned money while travelling abroad, apply for a forex card online with a reputed bank.
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