Forex travel cards are prepaid cards that allow you to carry multiple foreign currencies in a single card. They are one of the most convenient and cost-effective ways to carry foreign currency when you are travelling abroad. In this article, we will discuss what forex travel cards are, how they work, and the benefits they offer.
What is a Forex Travel Card?
A forex travel card is a prepaid card that allows you to load multiple foreign currencies into it. It is similar to a debit or credit card, but instead of being linked to your bank account, it is pre-loaded with foreign currency. You can use it to withdraw cash or make purchases abroad without having to worry about currency conversion rates.
Forex travel cards are available from several banks and financial institutions. You can apply for one before you leave for your trip, and it will be delivered to your doorstep. Once you receive the card, you can activate it and load it with the currency of your choice. You can also reload the card as and when required.
How does a Forex Travel Card work?
A forex travel card works like any other prepaid card. You need to load the card with the currency of your choice before you travel. Once you reach your destination, you can use the card to withdraw cash from ATMs or make purchases at merchants that accept the card.
Forex travel cards are available in two types – single currency cards and multi-currency cards. A single currency card allows you to load only one foreign currency, while a multi-currency card allows you to load multiple currencies.
When you use a forex travel card to withdraw cash or make purchases abroad, the transaction is processed in the local currency. The card automatically converts the amount into the currency of the country you are in. The conversion rate used is the prevailing rate on the day of the transaction.
Benefits of using a Forex Travel Card
1. Convenient: Forex travel cards are one of the most convenient ways to carry foreign currency when travelling abroad. You can load multiple currencies onto a single card, which means you don’t have to carry multiple currencies or worry about currency conversion rates.
2. Cost-effective: Forex travel cards offer better exchange rates and lower transaction fees than other modes of carrying foreign currency. You can save up to 5-6% on exchange rates and up to 3-4% on transaction fees when using a forex travel card.
3. Safe: Forex travel cards are safer than carrying cash or using your debit or credit card abroad. If you lose your forex travel card, you can block it immediately and get a replacement card. Some forex travel cards also offer insurance against lost or stolen cards.
4. Easy to use: Forex travel cards are easy to use and widely accepted. You can use them to withdraw cash from ATMs or make purchases at merchants that accept the card. You can also track your transactions online or through a mobile app.
Conclusion
Forex travel cards are a convenient and cost-effective way to carry foreign currency when travelling abroad. They offer better exchange rates, lower transaction fees, and are safer than carrying cash or using your debit or credit card abroad. If you are planning a trip abroad, consider getting a forex travel card to make your travel experience hassle-free.
