Before you decide to go abroad, one of the most important things is to exchange your currency. While planning abroad is little bit confusing, you need to buy a prepaid Forex card. Instead of it, you also have to prepare cash on your pocket.
On the other hand, using a credit card abroad for foreign currency transactions bring pros and cons. It may be fine, but it is expensive. If one uses a credit card abroad, there will be conversion charges, and if used at an ATM, an additional fee is levied.
Based on the pros and cons above, a prepaid Forex card can be the alternative. A prepaid Forex card is safe as it has a PIN protection comparing to the cash. It can also swipe for all sorts of transactions and attract in terms of pricing, said Anand Tandon, CEO and Founder Myforexeye.com
The Definition of A Prepaid Forex Card
A prepaid card can be loaded with multiple currencies on a single card. However, if you are visiting just one country, it’s better to load only a single currency.
You can get a prepaid Forex card from a bank or an authorized Forex dealer or money changers. You don’t even need an account relationship with the bank to purchase the card.
One merely needs to fill the application form with personal details, amount of foreign currency etc, and submit a self attested photocopy of one’s passport. Some may require a copy of the visa as well, hence get a confirmation on the required documents.
Be Aware of the Charge
8 things you should aware are cash withdrawal charge, balance inquiry charge, international SMS alert charge (monthly), replacement card free (domestic and international), statement request charge, charge slip retrieval charge, cross currency markup charge, and inactivity fees.
For the replacement card fee domestic, it is available within India. Meanwhile, for the cross currency markup charge, if your transaction is different from the loaded on the card, there will be a charge for about 3-3.5% on such transactions.
In addition, inactivity fees mean stand for the inactive period. If a debit or credit Forex card is absence for more than 6 months, some banks may levy this.
Things to Confirm while Purchasing Forex Cards
After knowing a prepaid Forex cards, there are 3 things you have to know. First is about daily limit. There could be a daily limit on the usage, say only $200-300 can be spent per day. Second is the activation. You have to know how to activate the card, regenerate the card PIN in case you forget it abroad. Lastly, 24-hour helpline. You have to have always the helpline number handy.
