Whether you are traveling for official purposes or going on vacation, finding the right money changer that offers the best forex exchange rate is always a hassle. So, if you are traveling abroad for the first time, you need to sit down and chart out a plan on how to carry your money around.
A forex card is the most convenient way to carry foreign currency on your travels abroad. It is similar to a debit card, although the difference is that the prepaid money is in a foreign currency, the exchange rate is fixed at the time of loading the card, and there is no cross currency charge applicable when you transact in loaded currency on your card.
What is a forex card?
It is a type of prepaid card in which you can load money in foreign currency at a fixed money exchange rate. Furthermore, forex cards are accepted globally. You can use your forex card to make purchases, online transactions or withdraw cash from international ATMs.
There are two types of a forex card such as:
Single Currency Forex Card: As the name suggests, it can be loaded with one foreign currency, and it is ideal for people who are travelling to a particular country.
Multiple currency Forex Card: It gives you the ability to preload your card with multiple currencies. You will have to check with the forex card provider on the permissible currencies to load.
Benefits of using a forex card on your travel abroad
● A forex card generally offers a better exchange rate than cash procured from foreign money changers.
● You are protected against fluctuation of exchange rates as the foreign currencies are preloaded at a fixed exchange rate unlike Debit or Credit cards.
● Most banks offer forex cards based on your needs. You need not have an account with the bank to purchase a forex card.
● A forex card is safer to carry than cash. Also, it comes with chip and PIN technology that adds another layer of security.
How does a forex card work?
It is like a debit or credit card for your overseas travel, which is accepted globally, but it is considered a better option to carry foreign currency.
The process to apply for a forex card is simpler than a credit card. You are required to fill in an application and submit relevant documents or do the whole process online, depending upon your forex card provider. You receive the card with a PIN after verification of your application. You can later change your PIN. You can load your forex card from anywhere around the world.
You can use a forex card at merchant outlets, malls and airports. You can swipe it at POS terminals to purchase products and services. You can also withdraw cash from any international ATM. Details of the transaction are sent to your registered mobile number.
So, opt for a forex card and travel the world with ease. The best part is that you get to choose a forex exchange rate that best suits your needs while loading your card.