Tips for using Forex cards effectively for your overseas trip
Forex card is a type of prepaid card that can be loaded with foreign currency for use while travelling abroad. It is also known as travel cards as they are invaluable companions that help in simplifying and lightening your travel experiences. It is widely accepted and is one of the most cost-efficient and safe ways to pay for your expenses abroad.
Benefits of Forex cards:
A Forex card is one of the cost-effective ways of carrying and paying in foreign currency. It has replaced cash and travellers’ cheques to a major extent. The reasons are not far to gauge:
1. It’s cheaper and negates exchange rate risk. Most card issuers offer lesser spreads and at the same time, you can lock in the exchange rate when loading the card protecting you from foreign currency fluctuations during the travel.
2. It’s safer than other cards because it is a prepaid instrument and does not expose your savings bank account through a debit card or your credit limits through a Credit card.
3. Forex cards offer convenience, owing to wider acceptability, though not as much as debit and credit cards.
4. Most of the Forex cards also provide zero or lower transaction fees. Moreover, forex cards can be used to withdraw cash from ATMs in the local currency, at a fee.
Tips for using Forex card abroad:
1. Check exchange rates: Keep a check on the exchange rates before loading the card to get a favourable rate. Most players are open to negotiating these rates.
2. Keep looking for deals: Some issuer or other has deals on Forex cards, especially during travel and back-to-school seasons.
3. Issue more than one card: It’s a good idea to issue more than one card, preferably two, for the same load. The second card can kick in if the first card is lost or compromised.
4. ATM usage: Use ATMs affiliated with your card to avoid extra fees.
5. Avoid public Wi-Fi: To protect your data, one should avoid using public Wi-Fi for making online transactions or checking balances.
6. Online transactions payment: To avoid cross–currency charges use Forex Cards to pay for online transactions in stores abroad.
7. Dynamic currency conversion (DCC): DCC helps to make in-store credit card purchases in a foreign country using the currency of your own country. While DCC makes it easier for an international transaction, it also comes with an additional expense as it will include a markup fee and foreign transaction fees. So the customer should decline the option of DCC while making any retail store transaction.
8. Pay across the world with a single currency: Some Forex cards let you transact seamlessly wherever you travel without cross-currency charges. Load it once (in USD) and use it to pay for your expenses anywhere in the world.
CARD91 provides a multi-currency travel card designed for banks, distributors and agents helping with inventory management, including tracking, organising and overseeing all the multi-currency-related processes, providing a seamless digital onboarding. We make cross-border remittances faster, smoother, and more reliable through our SDKs.
Written by Srishti Sachdeva, Manager of Sales, CARD91.