Forex cards are a popular choice for travelers who want to carry foreign currency while traveling. They are prepaid cards that can be loaded with a specific amount of foreign currency, which can be used to make payments or withdraw cash at ATMs in the foreign country. Forex cards are accepted at most merchants and ATMs globally, making them an excellent choice for those who want to avoid carrying cash or using credit cards.
One important aspect of forex cards is the daily limit that is imposed on them. The daily limit is the maximum amount of foreign currency that can be spent or withdrawn from the card in a single day. The limit is set by the bank or financial institution that issues the card, and it varies depending on the card’s type and the issuing bank’s policies.
Forex cards come with different daily limits, depending on several factors. The most important factor that determines the daily limit is the type of card. Forex cards can be classified into two types – single currency cards and multi-currency cards.
Single currency cards are designed to carry only one currency, and the daily limit on these cards is usually higher compared to multi-currency cards. For example, HDFC Bank’s single currency card has a daily limit of $10,000 for cash withdrawal and $5,000 for point-of-sale (POS) transactions, while its multi-currency card has a daily limit of $5,000 for cash withdrawal and $3,000 for POS transactions.
Another factor that determines the daily limit is the issuing bank’s policies. Different banks have different policies regarding daily limits, and some banks may have higher limits compared to others. For example, Axis Bank’s forex card has a daily limit of $10,000 for cash withdrawal and $5,000 for POS transactions, while HDFC Bank’s forex card has a daily limit of $5,000 for cash withdrawal and $3,000 for POS transactions.
The daily limit on forex cards is also affected by the country where the card is being used. Some countries may have restrictions on the amount of foreign currency that can be withdrawn or spent in a single day. For example, in Thailand, the daily limit for foreign currency withdrawals from ATMs is ฿20,000 (approximately $650), while the daily limit for foreign currency purchases is ฿50,000 (approximately $1,600).
It is important to note that exceeding the daily limit on a forex card can result in additional charges or fees. For example, if a person tries to withdraw more than the daily limit from an ATM, they may be charged an additional fee by the ATM operator or the issuing bank. Therefore, it is essential to be aware of the daily limit and plan accordingly to avoid any additional charges or fees.
In conclusion, the daily limit on a forex card is the maximum amount of foreign currency that can be spent or withdrawn from the card in a single day. The limit varies depending on several factors, including the type of card, the issuing bank’s policies, and the country where the card is being used. It is important to be aware of the daily limit and plan accordingly to avoid any additional charges or fees.
