The number of foreign trips that Indians are taking is increasing every year. Unlike earlier, when foreign trips were rare, almost every person takes at least one foreign trip in his lifetime. Carrying currency for such trips becomes a matter of thought. Many people find carrying a forex card more convenient as compared to carrying cash.
A forex card provides the convenience of a debit card but is pre-loaded with foreign currency. This provides plastic cash at the hand of the traveller. It is very convenient to buy forex cards. Most banks provide forex cards, and there are companies that offer forex cards online.
As with every other type of card, there are few things that must be taken into consideration before applying for a forex card.
Here are 5 things to know before applying for a forex card in India:
1. Different types of forex cards:
There are different types of forex cards:
• Multicurrency forex cards:
• Hajj card
• ISIC student forexplus card:
Depending on the traveller’s needs, he can buy forex card. If the person is travelling to only one country, he can load currency from that country, or a universally accepted currency like the US dollar, British pound or the Euro. If travel to different countries is planned, then multiple currencies can be loaded.
2. Charges on forex cards:
Each forex card has different charges associated with it. When applying for a forex card, it is best to select the card with the least amount of charges, and also which provides the best service. Some of the common charges are:
• Forex card issue charges
• Service charges
• Balance inquiry charge
• ATM withdrawal charges
• Cross currency charge
• Replacement fee
• Statement charges
These are standard charges for a forex card, but all banks may or may not charge them. When you buy forex card, check which charges the bank levies.
3. Rate of exchange:
The rate of exchange while loading and emptying the forex card is the prevailing market rate at the bank. This means when you buy forex card, the bank will charge their prevailing selling rate, and when you unload or empty the card, the bank will charge their prevailing buying rate.
4. Chip based security:
All forex cards have chip security and are encrypted. This means that whenever they are swiped, a pin will have to put in the point of sale machine. It provides an additional layer of security. This means when you buy forex card, you will have to set a pin for it.
5. Reloading of funds:
It is possible to reload funds remotely to the card if there is shortage of funds. This money can be loaded on the forex card online.