Why You Need a Forex Card for Your Next Trip Abroad?

A Forex card is simply a prepaid travel card that allows travellers to make transactions in foreign countries. Travellers can load their cards with one or multiple currencies. With the help of a Forex card, you can withdraw money in foreign currency at your destination abroad.

Both financial institutions and banks can issue Forex cards. Depending on the country you are visiting, you can load money onto your Forex card. These cards are classified into different categories based on their usage, such as:

Single Currency Forex Cards

A single currency Forex card where travellers can add a single currency to a card. If a traveller uses this card for a different currency, then they need to pay higher cross-currency costs. Due to this, the use of such Forex cards is limited.

Multiple Currency Forex Cards

A multiple currency Forex card is a type of card that can be loaded with multiple currencies. This means that such cards can be used in different countries without paying any additional costs. However, before acquiring multiple currency Forex cards, ask bank officials about how many types of currencies you can load.

Also Read: Best Travel Credit Cards
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The use of Forex cards in foreign countries can help travellers in many ways. Below are individuals or people who should definitely consider using the best Forex card in India.

Frequent Travellers

One category of individuals who must acquire a Forex card is those who travel frequently to foreign destinations. Whether you are travelling for study, work, or leisure, having a Forex card will help make your trip comfortable.

International Students

Students who plan to continue their education abroad should consider getting a Forex card. This card allows them to easily control their expenses and avoid the risk of losing cash. Furthermore, they can instantly receive money from their home nation using a Forex card.

Senior Citizens

Seniors who travel abroad should definitely consider getting a Forex card. This reduces the possibility of financial loss due to unforeseen causes. Additionally, Forex cards make it simple for senior citizens to manage their money.

International Shoppers

Those who make purchases from international platforms should invest in a Forex card. With this card, you can effortlessly purchase services or goods from foreign nations without bothering about exchange rates.

A Forex card works like a debit or credit card. First, you need to apply for the card at any respective bank or financial institution based on your usage. Once the request is processed and approved by the bank, you will receive your card at the given address.

The first step after receiving a card is to change the PIN and then, using internet banking, load the card with the desired amount and currency. Once done, the Forex card is ready to use.

You can use your Forex cards to make any transaction in a foreign country. To track your available balance, you can use your phone or net banking.

Also Read: Credit Cards with Zero Foreign Transaction Fees

Cost-Effective

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.

To illustrate with an example, a regular international credit card will charge you a certain percentage of the transaction amount (anywhere between 1% and 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 volatile currency rates worry you, you will be happy to know that the exchange rate is stabilised on a Forex card. This means that Forex cardholders are free from the hassle of volatile currency rates.

This is because Forex cards come pre-loaded 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

Forex cards come in varied forms to cater to the needs of diverse travellers. 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.

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.

Here is the list of documents travellers need to provide to acquire the best Forex card in India.

• Copy of a valid Indian passport

• Copy of the ticket issued by airlines

• A valid copy of the visa

• Copy of PAN card

• Any customer who does not have a bank account needs to go through a mandatory KYC process.

Understand Forex Card Charges

One of the most important things to do when getting a Forex card is to know all about the charges and rates. Such cards have different types of fees associated with them, such as a card issuance fee, cross-currency charges, replacement card fees and more. Knowing all about these charges will help you make more informed decisions.

Research Different Options

Another factor to consider while acquiring a Forex card from any banking or financial institution is to research properly. Every banking institution offers a unique plan for Forex cards, so it is important to research various options and learn about their offerings before making a decision.

Know Transaction Limits

Another thing to keep in mind while acquiring a Forex card is its daily transaction limit. The Forex card does come with a transaction limit, which may vary from bank to bank. Familiarising yourself with the Forex card limit helps keep your expenses in check.

Learn About Reload Options

While looking for a Forex card for international travel, it is suitable to go with options that allow you to reload funds into the card instantly. This feature is invaluable when travellers need to make emergency transactions. It is best to go with banking and financial institutions that allow reloading funds online.

Understand Insurance Coverage

Forex cards include insurance coverage, just like credit cards. Each bank may have different insurance coverage. Hence, it is crucial to ask bank officials about the insurance coverage offered under the card.

Also Read: Important Tips for Currency Exchange When Travelling Abroad

Forex cards are loaded with various benefits that make them suitable options for international transactions. However, most of the time, people end up spending more than they intend to by using a Forex card. Here are some tips for using a Forex card more effectively.

Load Your Forex Card in Advance

One essential tip for using your Forex card wisely is to load your card in advance before the intended travel date. This will help you get the best offers and exchange rates for your international transactions.

Use Forex Card for ATM Withdrawals Carefully

If you need to make ATM withdrawals in a foreign country, then look for an ATM that is the same as the Forex card provider. This will help avoid extra costs. Also, it is best to withdraw a large amount of money based on your expenses so that you can save on multiple transaction fees.

Track Your Expenses

Another crucial tip to keep in mind while using a Forex card internationally is to monitor your expenses. It is best to check the bank statement and transaction for a Forex card to avoid any surprises at the last minute.

Set Transaction Limit

Many travellers also experience overspending. That is why it is crucial to set a transaction limit for the Forex card. This way, you will spend mindfully while on an international vacation.

Keep Your Card Safe

Another important tip for travellers using a Forex card is to keep it safe. Do not share your card PIN with anyone, and do not hand over your card, even during transactions.

If your Forex card is lost or stolen, notify your card issuer immediately to block any unauthorised transactions.

Also Read: Here are 11 tips and tricks for money exchange for trips abroad.

Forex cards are commonly used when travelling to international destinations. They offer various benefits over traditional credit or debit cards, such as a fixed exchange rate, multiple currencies and more.

From senior citizens to students to frequent travellers, anybody can use a Forex card without any hassles. It makes international trips easy for travellers since they do not have to deal with currency exchange.

In addition to acquiring a Forex card before your international travel, you should also consider investing in international travel medical insurance.

A travel insurance policy with medical coverage allows travellers to deal with various unforeseen travel emergencies. Whether it is dealing with a medical emergency, baggage loss, or trip curtailment, a travel insurance policy has you covered.

It is best to buy travel insurance online from reliable and well-known providers like TATA AIG. We offer customised travel insurance policies based on your unique needs. For example, if you are a frequent traveller, our multi-trip insurance plan is well suited for you. Further, if you are a senior citizen, we have senior citizen trip insurance customised to your unique health needs.

Besides this, we have a dedicated travel assistance service to assist you during emergencies in a foreign country. With round-the-clock assistance, we resolve your query as quickly as possible. Get your affordable and customisable travel insurance quote now with TATA AIG.

Is it better to carry cash or a Forex card?

The choice of carrying cash or a Forex card depends on your personal preference. However, with a Forex card, the chance of losing money to theft and other things is less. It is better to carry limited cash with you for emergencies while travelling to foreign destinations.

Is a Forex card necessary for international travel?

Forex cards are not necessary for international travel. However, with a fixed exchange rate and nominal charges, it has become a convenient option for many travellers.

Do I need to pay an extra charge to acquire a Forex card?

To acquire a Forex card, you need to pay an issuance fee, reloading fee, cross-currency conversion fee and other fees to the bank. These fees and costs may vary from bank to bank.