Key Insights:
- Discover why Forex cards are the go-to options for international travel. Learn about the benefits of Forex cards, their advantages and uses giving them an upper hand over cash, credit and debit cards.
- Forex cards are cost-effective, secure, quick and the most reliable tool to manage and track your expenses abroad. Some even come with exchange rate lock-in features preventing the impact of fluctuations in the market.
Are you a frequent flyer or planning your first international trip? Is the hassle of money exchange and managing finances worrying you? We have a solution to make your international travels cost-effective and convenient- Forex Cards, an easy and secure way to manage your money.
Forex cards eliminate the need to carry traveller’s cheques or chunks of cash by providing a smart alternative to travellers. This blog will highlight the benefits of Forex cards and why they are your go-to option over cash or debit cards.
What is a Forex Card?
Forex cards are a secure and convenient money management tool designed for international travellers. The core use of Forex cards is to provide a smart and cost-effective option to using bank cards or cash. They enable you to preload your card before your trip with multiple currencies with predetermined currency exchange rates, to seamlessly manage finances during your travels.
Moreover, they are very easy to use. Once the money is loaded you can swipe the card or withdraw money from ATMs. Some even offer travel insurance and exchange rate lock-in features, enabling you to fix the exchange rates at the time of loading, shielding the impact of currency fluctuations.
Benefits of Forex Cards:
Forex cards are a must-have for international travel because of their benefits. For smart travellers, the following benefits of Forex cards will make them say yes.
Convenience and Security Advantages:
Convenience and security are the stand-out Forex card advantages that will make you reconsider other options. Forex cards are embedded with PIN and chip technology securing your transactions. If the card gets stolen or lost you can block the card easily and get a new one issued, protecting you from fraud.
Competitive Exchange Rates:
The next best thing about the Forex card is that it provides competitive exchange rates. This is one of the greatest benefits of Forex cards eliminating the hefty transaction rates charged by bank cards. By choosing your Forex services provider wisely, like Laxmii Forex, you can get the best exchange rates with the added feature to lock in this rate preventing you from fluctuating exchange rates.
Multi-Currency Support Benefit
Forex cards also offer multi-currency support. This feature of Forex cards makes them a very handy tool if you are planning to travel across countries. This Forex card benefit enables you to lead multiple currencies on a single card saving you from the hassle of carrying different currencies. This advantage of Forex cards simplifies your finances and prevents the burden of currency conversion fees, adding to your cost savings.
Fixed Conversion Rates:
The ability to lock in exchange rates is one of the compelling benefits of Forex cards.
This feature ensures the exchange rate is fixed once you load your Forex Card, shielding you against market fluctuation. This advantage of Forex cards enables cost predictability and better budgeting during your travels.
Forex Card vs. Cash
Cash had always been the pro-choice for international travel in the past. But now people are slowly shifting towards more secure and convenient alternatives like Forex cards. And there’s a good reason for this shift. Let us tell you why by highlighting the key differences between Forex cards vs cash:
| Parameters | Forex Cards | Cash |
|---|---|---|
| Safety | Highly secure due to PIN and chip technology with card blocking feature | Less secure with no recovery option after a theft or loss |
| Ease of Use | Super convenient with multi-currency support, that could be managed via apps. It works just like a debit or credit card | Inconvenient as the traveller needs to carry multiple currencies while travelling to different nations |
| Exchange Rates | Offers the lowest possible rates with an exchange lock-in feature saving you from rate fluctuations | Less favourable than Forex cards with a possibility of extra fees |
| Fraud Protection | Offers fraud protection and emergency assistance | No protection against fraud once the money is stolen it cannot be recovered |
| Currency Management | Seamless currency management as one card can be loaded with multiple currencies making the currency switch easier | Relatively difficult as you need to carry multiple currencies while managing different rates |
| Tracking Transaction | Online tracking ensures transaction visibility | Need to manually maintain and budgeting sheet to track expenses |
| Reloading Currency | Can be easily reloaded online or through a bank | Need to either withdraw money or physically exchange cash. |
Forex Card vs. International Debit Card
Now that you know the benefits of Forex cards over cash, let’s understand how much of an upperhand they have when it comes to international debit cards.
1. Transaction Fees
| Forex Cards | International Debit Cards |
|---|---|
| One of the noteworthy advantages of Forex cards is that they typically do not charge foreign transaction fees on ATM withdrawals or purchases. | In comparison, international debit cards charge foreign transaction fees (1% to 3% of the transaction amount) for every purchase made abroad |
| Forex cards also charge no DCC (Dynamic Currency Conversion) fees preventing you from being charged for converting foreign currency back to home at POS. | The international debit card also charges DCC where the conversion to the home currency is often at unfavourable exchange rates resulting in hidden costs. |
| The lock-in exchange rates benefits of Forex cards prevent you from currency fluctuations and enhance cost predictability. | Unlike Forex cards, the exchange rates are determined at the time of the transaction, leading to unpredictable costs and currency fluctuations rates. |
| Forex cards may charge a nominal reloading fee which is far lower than the collective fees associated with international debit card transactions. | International debit cards also charge significant fees for ATM withdrawals including a flat fee per withdrawal and a percentage of the withdrawn amount. |
2. Acceptance and Usability
| Forex Cards | International Debit Cards |
|---|---|
| Forex cards are globally accepted at restaurants, ATMS, merchants, hotels, etc., ensuring seamless transactions | International debit cards are accepted in many countries except in areas with less developed banking. Due to its high processing fees, some merchants are hesitant to accept it as well. |
| Forex cards also support multi-currency loading to easily switch between multiple currencies, making it ideal for international travels | International debit cards are linked to your home currency which requires currency conversion with every transaction leading to higher costs and fees |
| The ease of use provided by Forex cards adds to its benefits as they can be tapped or swiped for purchases. They function just like a debit or credit card, with an option to manage and track transactions online. | Although these cards are easy to use, they may need a bank’s approval for some purchases, and issues like unexpected fees and blocked transactions may occur. |
Uses of a Forex Card
Forex cards are a powerful money management tool that redefines convenience for international travellers, business professionals and students. Let’s explore the uses of Forex cards making them a must-have tool in your wallet:
1. Easy ATM Withdrawals
Are you wondering if can i withdraw money from Forex card? One of the many uses of Forex cards is withdrawing local currency from ATMs while you are abroad. This feature of Forex cards is very useful when you need cash for purchases where card payments are not accepted.
Easy Withdrawals: Just insert your Forex card into any ATM (preferably the ones supporting Visa or MasterCard) enter your PIN, and withdraw cash. The money is deducted from the pre-loaded balance.
Additionally, if you’ve locked the exchange rate loading you are affected by fluctuating rates as well.
Low to Zero Fees: Some Forex cards, like the ones by Laxmii Forex, charge no ATM withdrawal fee up to a certain limit, making it a cost-effective option.
Wide Accessibility: Forex Cards are accepted at ATMs worldwide for easily accessing cash when needed without running to the currency exchange services.
2. POS Transactions
You can swiftly make purchases at POS (Point of Sale) terminals using Forex cards while shopping, dining at local restaurants and paying for hotel services. Here is how this use of a Forex card eases your travel:
- Just Swipe: You can swipe, insert, or tap your card at the POS terminal, and viola and your transaction is completed. Just ensure your card is loaded with enough funds.
- Secure: Apart from being globally accepted, Forex Cards have built-in security such as PIN protection and chip technology, securing your transactions. Moreover, some Forex Cards offer zero liability protection removing your accountability from unauthorised transactions if the card gets lost or stolen.
Is a Forex Card Worth It?
Forex cards are built to make your international travel safe, secure, convenient and seamless. If you are wondering, is a Forex card worth it? Then ask yourself if you hate the multiple currency loading perk, ATM withdrawals, exchange rate lock-in feature, and emergency assistance making your international trip cost-effective and secure while ensuring cost-predictability.
If hidden charges and multiple fees drive you mad, then be a smart traveller and get a Forex card. At Laxmii Forex, we offer the best Forex cards and Student Forex cards with zero DCC, issuing charges, no swiping charges and the lowest possible rates in town.
Get your hand on Laxmi Forex cards as we prioritise secure and safe transactions.
FAQs
Identifying the best Forex cards would depend on your travel needs. However, some popular options include Laxmii Forex cards, ICICI Travel cards, HDFC Forex Plus cards and Axis Bank Forex cards.
Some Forex cards come with such benefits. It’s smart to pick a Forex services provider with expertise across services like international money transfers and currency exchanges along with Forex cards.
Any individual with travel documents and valid identification (above 18 years) can apply for Forex cards. However, minors may need a guardian to apply on their behalf.
The cost of the Forex card is informed by fees like issuing charges, DCC, ATM withdrawal charges, annual charges and re-loading fees. However, Laxmii Forex offers cars without any issuing fees.
Yes, many banks and Forex service providers, like Laxmii Forex, quickly deliver your Forex cards to your doorstep.
Every FOrex card has a limit set by the provider. The maximum limit varies from USD 10,000 to USD 250,000 depending on the regulations and type of card.
