When travelling abroad, the most common questions one asks are how much foreign currency to carry and how to carry it. Using cash on a holiday that is long is generally not advisable. One can of course carry travelers’ cheque, plastic money in form of debit and credit cards and prepaid travel cards.
Using a credit card in a foreign land for foreign currency transactions is fine, but it is an expensive business. There will be extra conversion charges if one uses a credit card. If one uses an ATM, an additional fee is charged.
What is a Forex Card?
A Forex card can be a single currency card and also a multi-currency card. Single currency card supports a single currency that is the medium of trade in a specific location. A multi-currency card supports multiple currencies. The Forex card holders can store the currency in their cards.
How does a Forex card functions?
When purchasing a prepaid Forex card for the first time from any bank, the money charger is loaded with money and funds. For instance, if one is going on a trip to the United States of America and France, then Euro and US Dollar will be loaded into the multi currency card. The euro and dollar is put into the card at the ongoing rate on the day of purchase of the Forex card.
When the user is using the forex card for the first time, a one-time activation fee is charged. The process of shopping abroad is simple. One can simply swipe the card at PoS terminals and money is deducted from the account on spot. The card automatically detects in which country is the transaction being made and will use the loaded local currency of that particular country.
If one wants to withdraw money from ATMs abroad, a small ATM withdrawal fee is charged. If in case the Forex card needs to be reloaded with money again, one can easily reload it anytime online or by doing a quick bank transfer.
Why buy Forex card? There are several advantages of Forex card. Some of them are as follows-
- Forex card offers better exchange rates at a cheaper rate
- Forex Card is loaded with foreign currency are immune to the fluctuation of currency in the forex market.
- Forex cards are secure and protects the holders funds
- Forex cards are used to carry multiple foreign currencies.
- Forex cards have no additional charges when swiping, unlike the credit cards.
- Forex cards are universally circulated, accepted and legal.
- Forex cards are simple to use.
How to apply for a Forex card?
Applying for a Forex card is a simple and a quick process. One needs to submit an application-cum-declaration. With that application, a copy of the passport, tickets and visa should be attached. One has to remit the amount in their home currency equivalent to the amount one wants in foreign currency. Once the transaction is completed, the card gets activated. Once the card is activated, it is ready to use.