Introduction
Imagine you are at the airport and ready to embark on your international trip, but you are unsure what’s the best way to manage your travel money. Should you carry cash or use a forex card? Don’t worry; we got you covered in this ultimate guide to international travel money management.
Forex Cards: What are they and how do they work?
Forex cards, also known as travel cards, are prepaid cards that allow you to load and carry foreign currency in a digital form. They can be used for cash withdrawals, payments, and purchases in a foreign country. To get a forex card, you need to submit your identity proof, address proof, and passport copy to the bank, and they will issue you a card.
A peek into Cash Management Overseas
Carrying cash overseas has been the most traditional way of managing travel money. It is still prevalent in many countries where digital modes of payment are not widely accepted. You can get the currency exchanged beforehand or withdraw cash from ATMs on arrival.
Exchange Rates for Forex Card and Cash
Forex cards offer better exchange rates as compared to cash, which usually incurs additional charges and fees. Forex cards come with a fixed exchange rate, and you don’t have to worry about fluctuating exchange rates. Whereas, in the case of cash, the exchange rate keeps varying, and it also involves a commission charge.
Convenience of Use
Forex cards offer a lot of convenience, making them one of the most popular choices for international travel money management. Unlike cash, forex cards can be swiped for payments, used for online shopping, and withdrawn at ATMs. However, in remote locations, where digital modes of payment are not prevalent, cash may be the only option for you.
Safety Concerns
Safety is a significant concern when you travel overseas. Forex cards come with added safety features like EMV chips and PIN protection, making them more secure to use. In contrast, carrying cash is risky as it can get stolen or lost.
Reload Option for Forex Cards
Forex cards offer the option to reload as per your requirements, which is not possible in the case of cash. You can load or reload forex cards with the desired amount, making them a more flexible option.
Charges Involved in Forex Cards and Cash
Forex cards generally come with charges like issuance fee and reload fee, whereas physical cash only has transaction charges and commission charges. However, it’s important to note that forex card charges can be more than cash management charges in some cases.
FAQs
Q. Should I carry cash or use forex cards for international travel?
A. If you prefer convenience, safety, and better exchange rates, forex cards can be a good option. However, if you are traveling to remote locations where digital modes of payment are not prevalent, carrying cash may be better.
Q. Are there any additional fees or charges for forex cards?
A. Yes, forex cards have issuance fees, reload fees, and transaction fees. It’s important to check the terms and conditions and choose a card that suits your requirements and budget.
Q. Is it better to get forex cards from banks or private vendors?
A. It’s recommended to get forex cards from banks as they offer better safety features and exchange rates as compared to private vendors.
Q. Are there any limits on the amount that can be withdrawn or spent using forex cards?
A. Yes, forex cards have limits on the amount that can be withdrawn or spent. It’s important to check the terms and conditions carefully to avoid any inconvenience.
Q. Can forex cards be used for shopping and online payments?
A. Yes, forex cards can be swiped for payments, used for online shopping, and withdrawn at ATMs.
Q. Can I reload forex cards while traveling overseas?
A. Yes, you can reload forex cards both in India and overseas.
Q. What happens if I lose my forex card or it gets stolen?
A. In case of loss or theft, you can report it to the bank and get it blocked immediately. The bank will then provide a replacement card as per the terms and conditions.
Conclusion
In conclusion, whether to carry cash or use forex cards is a subjective matter. It depends on your preferences, budget, and travel plans. However, forex cards are generally considered a better option due to their convenience, safety, and better exchange rates. Make an informed choice after considering your requirements and do research on various options available in the market before making the final decision. Happy traveling!