You may know what prepaid travel forex cards are if you travel often. It acts as your best friend on overseas trips by carrying foreign currency and making it easy to pay for your expenses. With forex cards, you do not need to carry around a wallet full of cash or wait in line to convert currency. You can use it like a credit or debit card.
You can pay for your local expenses in restaurants, hotels, bus passes, taxis, and more, and you can also withdraw cash in an ATM. The contactless forex card allows you to simply wave or tap it on the payment terminal. What are the different types of these cards? Where can you buy prepaid travel forex cards? Let’s see.
Types of forex cards
There are two main types of forex cards:
- Single currency card: The card is preloaded with one currency. It can be loaded again when required.
- Multi-currency card: This card can be preloaded with many currencies. The number of currencies varies depending on the card chosen. Banks, travel agencies, and financial institutions offer a vast choice of cards that the applicant can choose from.
Why should you get a forex card?
- It is as safe and secure as the credit cards you use on a daily basis.
- Prepaid cards help you to plan your budget for your trip.
- It is very easy to use and offers great convenience.
- The currency in the card is based on that particular day’s exchange rates so you do not have to worry about fluctuations in the value of the currency.
- It is cheaper than debit and credit cards.
- You do not need to carry money.
- In case the card is misplaced or stolen, you can freeze it. So you will not lose your money.
- These cards are universally used and accepted.
- The currency of your country is converted to the local currency and you are charged a conversion fee for each transaction.
- You can buy one card after paying an issuance fee and you can use it for all your future travels.
What to know before applying for a prepaid forex card?
There are a few changes that the applicant must be aware of. Some of them are:
- Cash withdrawal charge: The cost when you withdraw money from the card.
- Balance inquiry charge: The charge for checking the balance.
- International SMS charge: For receiving and sending messages when abroad. The money for this is charged on a monthly basis.
- Replacement card fee: The charge to replace your card. This charge is applicable domestically and internationally – that is, inside or outside your home country.
- Charge slip retrieval charge: The charge to get a transaction slip at an ATM.
- Inactivity fees: Not using the card for a consecutive period of 6 months can result in some fees. Some banks levy this charge.
To buy prepaid travel forex cards, first of all, you have to contact a bank. The bank will ask you to fill an Application-cum-Declaration form with your passport, tickets, visa, and the required money. That’s all you need for the most convenient travel experience.
Forex cards can only be used in foreign countries and they expire within three to five years. The period of usage varies from issuer to issuer. The user must unload the money in the card by paying the unloading fee after the trip to prevent losing any money. One must also compare the different kinds of forex cards and the different issuers before choosing a card.