Why You Need a Forex Card for Your Next Trip Abroad

For the travel enthusiast, the world becomes an oyster. However, to make their travel dreams a reality, every traveller will have to make a checklist of all the important things they will need for their trip. Right from visa, flight tickets, and a comprehensive travel insurance plan to how you will be paying for your indulgences while overseas.

You can run out of cash, or your debit card can get declined; in any which way, it will spoil your zing. Therefore, buying a forex card in India before your trip can make a lot of sense. Before knowing how a forex card works, you must first know the forex card meaning.

A forex card is essentially a prepaid travel card meant for international travellers. Most countries accept forex cards for making payments. The use of a forex card is similar to debit or credit cards – it helps you make payments for any goods you purchase or services you avail of during your trip overseas. Another use of a forex card is for withdrawal from an ATM of the local currency of the country you are travelling to. When you get your forex card in India before you travel, you will be happy to know that, unlike an international credit card, you won’t be charged for cross-currency exchange. Once your forex card is loaded, you will also not be impacted by the changes in the exchange rate, nor will you be charged a transaction fee each time you swipe the card to make a payment internationally.

When it comes to finances, you must always be informed. After knowing the use of a forex card, the next step is understanding how a forex card works. The usage of forex cards is exactly like credit/debit cards, and they come in two variants:**

• Single currency forex cards: A single-currency forex card can only be loaded with the currency of only one particular country. Therefore, this card is meant for travellers who are journeying to a single international destination.

• Multi-currency forex cards: As the title suggests, you can top-up the multi-currency forex card with currencies of varied countries. This card is the best option for those who will be travelling to multiple destinations. However, multi-currency forex card holders will have to check with their bank about how many currencies can be loaded on the card.

Once you select your desired forex card, you will have to apply for it with the card issuer, who will approve your application and give you a card with a pin. It is always advisable to change the pin of the card once you receive it. You can then load the card with the desired amount and the currency of the country you are travelling to via internet banking. Once this is done, you are ready to make purchases abroad by simply swiping your forex card on the card machine.

In addition to being convenient, there are several other benefits of forex cards for those who are travelling internationally:

Cost-Effective

Perhaps one of the best advantages of a forex card is that it is highly cost-effective. This is especially true when compared to other international credit or debit cards that levy transactional charges with every swipe. However, this does not mean that there are zero forex card charges, only that forex cards are relatively more reasonable.

To illustrate with an example, a regular international credit card will charge you a certain percentage of the transaction amount (anywhere between 1% to 4%) every time you use it. Contrarily, a forex card has, within its suit, a certain number of free swipes. Once the free swipes are exhausted, the cardholder will be charged $2 as a transaction fee. Where forex card charges will be predefined, the international credit card charges will vary with each transaction.

Stable Exchange Rate

If the volatile currency rates worry you, you will be happy to know that in a forex card the exchange rate is stabilised. This means that forex cardholders are free from the hassle of volatile currency rates. This is because forex cards come preloaded with a specific forex amount, protecting you from severe currency fluctuations. An individual can purchase the forex value in advance based on their suitable value. The exchange rate for the loaded value is then fixed.

Customisable

To cater to the needs of diverse travellers, forex cards come in varied forms. Right from single and multiple currency cards to special cards for students and frequent travellers, there is something in store for every kind of traveller. For instance, frequent fliers can opt for a forex card with discounts that eliminate cross-country charges.

Secure

One cannot overlook their financial security while travelling overseas. That is why travellers need to take care of themselves with travelling insurance and opt for the right payment method. Forex cards can be blocked if they are misplaced or stolen. You can also easily transfer the funds from your lost forex card into your account digitally. Some card issuers provide an alternate card that can be activated if the former card is misplaced.

Insurance Benefits

Some forex cards come with complimentary insurance for travellers. Common coverages include loss or theft of the card, air accident coverage, etc. However, since not all cards offer insurance, it is advised to invest in comprehensive travel insurance before your trip. Travelling insurance acts as your financial safety net in times of trial when in a strange country.

Global Acceptance

The rising popularity of forex cards is becoming widely accepted globally as a payment method. In addition to being accepted in major shopping avenues and hotels, they are also being accepted in local markets.

There are several benefits of forex cards that travellers are soon realising and so they are choosing them as a preferred method of payment when travelling internationally. However, while financial convenience is one aspect, financial security is another – and neither can be neglected. As the first is covered by choosing a forex card, the second can be looked after by a comprehensive travel insurance plan.

Travelling insurance covers you against a host of unpleasant scenarios during your trip. You can rely on your travel insurance to cover you for medical emergencies, personal liabilities, as well as situational challenges during your trip. You can even be covered against specific situations such as getting flight cancellation insurance by Tata AIG. It protects you from a range of carrier issues, right from bad weather and strikes to natural disasters and financial defaults of the airline.