Forex card or credit card? Which one to choose for international travel
International travel requires careful planning of a whole host of things – hotel reservations, packaging, creating the perfect itinerary, booking airline tickets, and more. Another major decision concerns the choice of the best way to transport the foreign currency for a seamless transaction experience abroad.
The availability of several options such as cash, credit card, debit card, Forex Card may complicate things for you. While carrying wads of cash can be extremely inconvenient and dangerous, swiping a domestic credit card abroad is a costly affair. Credit cards usually charge high currency conversion fees which can disrupt your travel budget.
This is where a Forex card saves the day.
What is a Forex card?
A forex card is a prepaid card designed for travel, which contains one or more foreign currencies of your choice. Once loaded, it works like your regular credit card, but with added benefits. What makes a Forex Card practical and safe? It has a chip and PIN for security and usually expires within 3-5 years. You can easily transact abroad and even withdraw money from ATMs in foreign currencies.
You can also charge multiple currencies if you are traveling to multiple countries. You don’t need to stand in line to trade or buy currencies. IndusInd Multicurrency Forex Card is one such card that can be purchased through the IndusForex online portal, where you can apply for a forex card online.
Here’s why you should choose a forex card instead of a credit card for international travel.
No Forex conversion fees
When using a forex card, no currency conversion fees are applied for currencies already on the card as they are locked when the card is loaded. Therefore, you are transacting in foreign currency rather than Indian currency.
In the case of credit card transactions, Indian currency undergoes a conversion and a forex currency conversion fee is charged each time.
Nominal fees for cash withdrawals from ATMs
If you use a credit card at an ATM abroad to withdraw money, some fees will apply as well as taxes. The cash advance or withdrawal fee can cost you up to 3.5% of the cash amount withdrawn. You will also need to pay an additional currency conversion fee for ATM transactions with a credit card.
A forex card, however, has minimum cash withdrawal fees that are much lower than those charged on a credit card. But, there is also a preset limit on the cash withdrawal limit on forex cards.
Protection against Forex rate instability
When using credit cards for transactions abroad, you can never be sure how much you will be charged, as the going exchange rates will be applied in real time plus additional fees. It can burn a hole in your pocket very quickly.
In the case of a forex chart, you become immune to the volatility of exchange rates which tend to be dynamic. When you load the card with the predicted forex amount at a fixed rate, all of your other transactions are debited from the full forex amount loaded. This gives you a clearer picture of costs and helps you plan a budget accordingly in advance.
Forex cards are flexible
Forex cards are much more flexible than credit cards. Normally, overseas credit card payments are charged with a markup fee ranging from 2-3.5% of the transaction value. A forex card does not charge these fees as long as it is used in the same jurisdiction or in the currency for which it is charged.
Thanks to its flexibility, the Forex IndusInd Multicurrency card can be loaded with 14 currencies depending on your needs. So, if your trip involves visiting multiple countries, avoid the surcharge. These are also easily top-up via an IndusForex online portal, come with 24/7 support and you can receive real-time notifications on your phone or via email.
A forex card is a great option to alleviate your currency worries while you are planning an international trip. It is easy to use, secure and remarkably profitable for multi-currency transactions. Plus, you don’t need cash or a credit card as a reserve in case you run out of balance. You can also top up the Forex card with currencies online, you can easily buy a multi-currency Forex card as most of the banks offer this service nowadays. If you want to avoid high multi-currency conversion costs and save your hard earned money when traveling abroad, apply for a forex card online with a reputable bank.
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