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Change: Know the advantages of a forex card

If you plan to travel abroad, an important part of your travel plan should be to keep foreign currency notes in your wallet. If carrying them is a problem for you, you can buy a forex card which is basically a prepaid card that can be loaded with one or more foreign currencies to make payments abroad. You can buy a forex card from your banker or any licensed forex trader.

Depending on your needs, you can buy a multi-currency and single-currency forex card, especially if you are visiting Europe. Once abroad, you can use the forex card to swipe at any merchant outlet that accepts Visa or Mastercard payments or withdraw cash from foreign bank ATMs.

Keep in mind the fees, charges
There are many varied options and features available when purchasing a forex chart. Choose the one that suits your needs rather than opting for a complete model unless necessary. During the selection process, keep an eye out for fees and charges as this could prove to be a dampener if the card is not used carefully.

Generally, forex cards do not charge any transaction fees when used at merchant outlets, making them a better alternative to debit or credit cards. The most important fee is the “currency conversion fee”, which should be as close as possible to interbank rates.

But then there could be a plethora of other charges in a forex chart, of which you need to pay close attention to three or four charges. First, there might be a “card issue fee” which is around Rs 150, although some banks or dealers may waive this. Then comes the “loading and unloading fees” which could also be around Rs 150 or free in some cases. Next come fees for “cash withdrawal” at overseas ATMs which can amount to around 1% of the amount withdrawn and even fixed transaction fees. Additional charges may be levied by the bank owning the ATM abroad.

Avoid withdrawing money from ATMs
Overall, only use forex cards for swiping at point of sale and limit use for withdrawing cash from ATMs. And, look for options that have no or minimal fees for currency conversion, transactions at a merchant, or when withdrawing cash from ATMs – these three are the main uses of forex when trading. we are abroad.

There are also a few ancillary costs, such as receiving text messages every time you transact with a forex card abroad or getting a statement after a transaction at an ATM. Try to avoid them to prevent the forex card limit from running out. Also keep in mind that there is an “inactivity fee” if the forex card is not used within 180 days of returning to your home country. Knowing the forex card fees and terms will help you get the most out of the forex card when you are abroad.

Debit card, credit card
One can also use the international debit card or a credit card that allows international transactions abroad. In the case of credit cards, there is a foreign exchange markup fee of approximately 3.5%. Additionally, there are transaction fees of 2.5% to 3.5%. Not all credit cards allow international transactions, so you should check before you take it.

When it comes to security, the risk on the forex card is limited to the amount you have on that card. Contrast this with a debit card or credit card where your entire bank balance or outstanding limit could be at risk.

Finally, when it comes to transporting foreign currencies overseas, it’s best to diversify them – keep cash on hand for emergencies and don’t rely entirely on forex charts or any other currency cards. plastic. You never know when the need to use physical notes arises in a foreign country!

Card Rules
The most important fee for a forex card is the “currency conversion fee”, which should be as close to interbank rates as possible.

Only use forex cards for swiping at the point of sale and limit their use for withdrawing cash from ATMs.

The risk is limited to the amount of money you have loaded onto the forex card, which makes it safer than using a credit or debit card abroad.