FOREX CARDS: THE CHARGES YOU INCUR ABROAD
Forex cards are the new must-have financial instruments in your travel kit. The news of this fairly recent creation in the foreign exchangefield is picking up momentum for various reasons. High on its security feature, convenience like never before, increasing acceptability and weighs more economically are some of the reason why the forex cardshave gained popularity, leaving behind contenders like the traveler’s cheque and the debit and credit cards. Owning a forex card is a prevalent practice among frequent international travelers and why shouldn’t it be, after all, it protects the user’s funds from currency fluctuation when abroad.
If you aren’t already aware, a forex card is a prepaid card that can hold multiple currencies in this one card. This is easily available, you can buy it from a bank or there are authorized forex dealers that sell forex cards. It is a fairly easy process to buy forex cards. All you need to do is furnish some details for security and record-keeping purposes such as a few personal information, the amount required, and a verified proof of identity. The documents required can vary from place to place and their policies.
The conversion charges no longer pose a problem once the forex card is charged with the required amount. Although, there are other charges a possessor of such a card needs to be aware of when making use of this facility abroad. Information of these charges can help make better appropriations and track your funds more accurately. These aren’t too many, so it is going to be easy to keep an eye out for these.
A forex card functions in a similar way a debit or credit card does. The debit and credit cards contain the currency of the country the cards are issued in. For example, if you have issued the cards in India, it is going to carry Indian Rupees. Whereas, in the case of the forex cards, the amount is converted to the required currency when loading the card. Now their similarity lies in the way they are used. Just like a debit or credit card, a forex card can be swiped to pay for your expenses. It can also be used in an ATM to withdraw cash. Here the charges apply in a forex card.
Every time you use a forex card to make a cash withdrawal, there will be a cost incurred. Also, you will be charged whenever you check your balance. In case you opt for alerts about the transactions of your card, for every international SMS you receive you will incur a fee. This applies when requesting a statement and charge slip retrieval as well. Sometimes, there may come a situation where your card carries one currency but you make a transaction in another currency, then you will incur a cross currency markup charge.
All things considered, the forex card is the finest option available and makes traveling to different countries an easier experience in terms of how to carry the required currencies around. If you view the charges that entail the card as cons of the said instrument, the pros outweigh them and therefore prevail as a great alternative.