Are you planning that dream trip across continents this year? Maybe Southeast Asia, Europe, and North America? Or Australia and New Zealand? Travelling internationally inevitably means exchanging your local currency for the appropriate foreign one.
While credit cards and traveller’s checks have been around for decades, a smarter and more efficient option has emerged in recent years – prepaid Forex cards.
In this post, we will explore forex cards, how they work, their advantages over traditional options, and why every wise traveller should have one handy on their next multi-destination adventure.
What is a Forex Card?
A forex card, or prepaid forex card, is a type of travel currency card that is loaded with foreign currency of your choice. Think of it like a prepaid credit or debit card, valid internationally, that allows you to make payments and withdrawals in the designated foreign currency. Some forex cards, known as zero forex markup cards, provide currency at the exact inter-bank exchange rate without adding any markup fees on top of the base exchange rate.
Types of Forex Cards
Forex cards are available in different variants based on the requirements of the travellers. The main types of forex cards are:
Single-Currency Card
A single-currency forex card is loaded with only one foreign currency and is suitable when you plan to visit just one destination country. If you try to use this card to transact in any other currency, you will incur heavy conversion fees, markups and other charges.
Multi-Currency Card
A multi-currency card allows you to preload multiple global currencies on the same card. This is the most beneficial pick for frequent and globetrotting travellers who hop across countries and continents. It avoids the headache of carrying and exchanging multiple foreign currencies.
Student Forex Card
Specialised student forex cards are designed for young adults travelling abroad for higher education needs. Besides functioning as prepaid travel cards, they also double up as international student ID cards that offer exclusive discounts and benefits across services like transport, accommodation, eating out and more. Student cards can help manage living expenses wisely.
How does a Forex Card Work?
Getting and using a Forex card involves 3 simple steps:
- Get loaded: Based on your travel plans and duration, decide the foreign currencies and load amounts for each before you travel. Typically, this is done via your bank account, debit/credit card, or cash at the issuing agency’s branch.
- Activate it online: Receive your physical Forex card to carry on your trip, then activate it via secure login credentials. This links you to the preloaded balance and makes it usable abroad.
- Spend abroad: Once abroad, you can use your Forex card like any other debit card at ATMs, hotels, shops, etc. When you withdraw, the system automatically recognises the card and deducts it from the right currency balance.
Key Advantages of Forex Cards
Now that you know what forex cards are and how they work, let’s look at 3 major ways they score over debit cards, credit cards, traveller’s checks, and cash when you visit multiple countries:
1. Convenience Across Currencies
With a single Forex card loaded with multiple currency wallets, you can easily withdraw or make payments in any of those currencies without carrying cash around or finding places to exchange one currency for another. So whether it’s Singapore dollars in Singapore, euros in France, or pounds in Britain, your one prepaid Forex card seamlessly gets the job done everywhere!
2. Safety and Security
Forex cards are chip-enabled and PIN-protected, just like secure domestic cards. If lost or stolen, you can immediately get the card blocked via 24×7 helplines and restore the balance onto a replacement card. Much safer than losing cash or even traveler’s checks!
3. Better Exchange Rates and zero Fees
As travel currency cards are prepaid with fixed amounts loaded, you lock in competitive foreign exchange rates determined during the loading without suffering from any fluctuations later. And there are little to no fees – no overseas transaction charges, zero cross-currency rates, and sizeable ATM withdrawal limits.
The Bottom Line
So, suppose you are looking to save time, effort and money during your upcoming expeditions across continents. In that case, forex cards are the most seamless, safe and pocket-friendly payment option at your fingertips! Check out the various options, compare them, and pick the top provider to tuck a prepaid forex travel card snugly alongside your passport before you jet set off on that dreamy multi-country holiday!
Disclaimer: This article is a paid publication and does not have journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content(s) of the article/advertisement and/or view(s) expressed herein. Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the view(s), opinion(s), announcement(s), declaration(s), affirmation(s) etc., stated/featured in the same.
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