Outward remittance and forex card are two popular ways to transfer money internationally. While both serve the same purpose, which is to transfer money from one country to another, they differ in terms of cost, convenience, and security. In this article, we will discuss the pros and cons of each method so that you can decide which one suits your needs better.
Outward Remittance:
Outward remittance is the process of sending money from a bank account in one country to a bank account in another country. This can be done through various methods such as wire transfer, online transfer, or through a money transfer service. The process involves converting the local currency into the foreign currency, which incurs a conversion fee and an additional transfer fee.
Pros of Outward Remittance:
1. Convenience: Outward remittance can be done from the comfort of your home through online banking or mobile banking. You can initiate the transfer at any time, and the money will be transferred to the recipient’s account within a few business days.
2. High Transfer Limits: If you need to transfer a large amount of money, outward remittance may be a better option as it offers higher transfer limits compared to forex cards.
Cons of Outward Remittance:
1. High Fees: Outward remittance involves several fees such as conversion fees, transfer fees, and intermediary bank fees. These fees can add up and make the transfer expensive.
2. Exchange Rates: The exchange rate offered by banks for outward remittance is generally not the best in the market, which means you may end up paying more for the transfer.
Forex Card:
A forex card is a prepaid travel card that can be loaded with multiple currencies. It is a convenient and secure way to carry foreign currency while traveling abroad. Forex cards can be used to withdraw cash from ATMs or make purchases at merchants that accept Visa or Mastercard.
Pros of Forex Card:
1. Low Fees: Forex cards have lower fees compared to outward remittance. The fees include issuance fees, reloading fees, and transaction fees, which are generally lower compared to the fees charged for outward remittance.
2. Competitive Exchange Rates: Forex cards offer competitive exchange rates, which means you get a better deal for your money. You can compare exchange rates from different providers and choose the one that offers the best rate.
3. Security: Forex cards are more secure compared to carrying cash as they come with a PIN and a chip for added security. In case of loss or theft, the card can be blocked immediately, and the balance can be transferred to a new card.
Cons of Forex Card:
1. Limited Usage: Forex cards cannot be used for all transactions, such as paying for hotel reservations or car rentals. Some merchants may not accept forex cards, which can be a problem if you do not have cash or a credit card.
2. Reload Limitations: Forex cards have a limit on the amount that can be loaded at once, which can be a problem if you need to transfer a large amount of money.
Conclusion:
Both outward remittance and forex cards have their pros and cons, and the choice depends on your specific needs. If you need to transfer a large amount of money, outward remittance may be a better option. However, if you are traveling abroad and need to carry foreign currency, a forex card may be a more convenient and secure option. It is important to compare the fees and exchange rates of different providers and choose the one that offers the best deal.
