Forex cards have become a popular mode of carrying foreign currency when travelling abroad, as they offer the convenience of using them like a regular debit or credit card, while also being cost-effective. A forex card works like any other prepaid card, except that it is loaded with foreign currency instead of domestic currency. In this article, we will explain how to use a forex card and all the important aspects related to it.
How to get a forex card?
There are several banks and financial institutions that provide forex cards to customers. To get a forex card, you need to visit a bank branch or apply online. You will be required to submit your KYC documents, such as passport, visa, PAN card, and proof of address. Once the documents are verified, the bank will load the forex card with the desired amount of foreign currency.
How to use a forex card?
Using a forex card is very simple, and it works just like a regular debit or credit card. You can use it to withdraw cash from ATMs or swipe it at merchant outlets that accept foreign cards. Here are the steps to use a forex card:
1. Check the balance: Before using the forex card, check the balance to ensure that there is enough foreign currency loaded on the card. You can check the balance online or by calling the customer support of the bank.
2. ATM withdrawal: To withdraw cash from an ATM, insert the forex card into the machine, enter the PIN, and select the amount to be withdrawn. Some banks may charge a fee for each ATM withdrawal, so it is advisable to check the fees before using the card.
3. Merchant payments: To make a payment at a merchant outlet, swipe the forex card at the POS terminal, and enter the PIN. The transaction will be processed in the foreign currency loaded on the card. Some merchants may offer to convert the transaction into your home currency, but it is advisable to decline the offer as the exchange rate offered by the merchant may not be favourable.
4. Online transactions: You can also use the forex card for online transactions, such as booking flights or hotels. Simply enter the card details and complete the transaction. However, some websites may not accept foreign cards, so it is advisable to check before making the payment.
Benefits of using a forex card
1. Safe and secure: Forex cards offer a safe and secure way of carrying foreign currency, as they are protected by a PIN and a chip. In case of loss or theft, the card can be blocked immediately to prevent any unauthorized transactions.
2. Cost-effective: Forex cards offer better exchange rates compared to currency notes, as they are loaded with foreign currency at the prevailing exchange rate. Moreover, some banks offer forex cards with zero or low fees for ATM withdrawals and merchant payments.
3. Easy to use: Forex cards are easy to use, and can be used like a regular debit or credit card. They also offer the convenience of reloading the card online, which eliminates the need to visit a bank branch.
4. Multiple currencies: Some banks offer forex cards that can be loaded with multiple currencies, allowing you to carry different currencies in a single card. This eliminates the need to carry multiple currency notes or cards when travelling to different countries.
Conclusion
Forex cards offer a convenient and cost-effective way of carrying foreign currency when travelling abroad. They are safe, secure, and easy to use, and offer better exchange rates compared to currency notes. To use a forex card, check the balance, withdraw cash from an ATM or swipe it at a merchant outlet, and enter the PIN. Moreover, forex cards offer multiple benefits, such as zero or low fees, multiple currencies, and online reloading. So, if you are planning to travel abroad, consider getting a forex card for a hassle-free travel experience.
