Get the Tata Capital App to apply for Loans & manage your account. Download Now


Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required

Tata Capital > Blog > Loan for Travel > Advantages of Using a Prepaid Forex Card for International Travel

Loan for Travel

Advantages of Using a Prepaid Forex Card for International Travel

Advantages of Using a Prepaid Forex Card for International Travel

People everywhere are enjoying their post-pandemic freedom by travelling to exotic destinations. However, travel, be it for business or pleasure, involves a lot of planning and organising. You must find flights, get visas, book hotels, plan itineraries, make restaurant reservations, and more.

But the most important aspect of international travel is deciding how to carry the currency. A forex card is the most convenient and safe solution. It is also the most preferred medium for seasoned and budding travellers alike. Why? We’ll find out in this blog.

What is a forex card?

A prepaid forex travel card is pretty much like a debit card but loaded with one or more foreign currencies. It can be used for electronic payment or money transfers abroad. You can also use it at ATMs to withdraw foreign currency.

A forex prepaid card may be a single-currency card with only one currency or a multi-currency card that can hold multiple currencies. Based on your travel habits, you can opt for one that is the most useful to you.

How does it work?

You can buy a forex prepaid card from a financial institution or a money exchanger. Sometimes, you may be asked to provide proof of impending travel to obtain a card. You can load the desired amount of foreign currency on your card, which is usually done at the current exchange rate on the day of the card’s purchase. You may also have to bear a one-time activation fee.

Once the card is activated, you can use it at any PoS terminal abroad to make payments. In the case of multi-currency cards, it will auto-detect the country you are in and pay with that currency, provided the card is pre-loaded with it.

You can also use it at ATMs to withdraw money, but this may involve additional charges. You can also reload the card online anytime by transferring funds to your Forex issuer.

Advantages of a forex card

1. Better exchange rates

Financial institutions charge a smaller exchange rate markup for forex cards than cash. Moreover, the money in your card is loaded directly as foreign currency based on the exchange rate on the day of loading. So it is protected from exchange rate fluctuations. For example, if you paid the INR equivalent of EUR 1000 on a particular day, your card will have EUR 1000, irrespective of how the INR-EUR rates change.

2. More secure

The most frequent advice you are likely to get from seasoned travellers is to be wary of pickpockets and thieves. While cash can get stolen very easily, a forex card is secured with a PIN and can be blocked almost instantly in case of theft or loss. Some financial institutions also offer a backup card with your welcome kit that can be activated once your lost or stolen card is blocked, and the balance will be transferred to the new card.

3. Minimal fees and charges

If you use your credit or debit card abroad, you will be charged a plethora of additional fees, increasing your total cost by more than 10%. You will also be charged a Dynamic Currency Conversion (DCC) fee when you use your card at a PoS terminal or for online transactions. But with a forex card, you can use it free of charge at any number of PoS abroad as many times as needed. There is also no additional fee for online transactions. Only ATM withdrawals may attract a minimal fee.

4. Universally accepted

Since a prepaid forex travel card works on Visa and MasterCard networks, it will be accepted by all merchants that accept regular debit or credit cards. With the world going digital, your forex card can be used abroad everywhere, from the local grocery store to e-commerce platforms.

Benefits of forex card for travellers

1. Cost-effective

A forex prepaid card is much more cost-efficient than your regular debit card or even cash. You save on exchange rate fluctuations, DCC fees, currency conversion, etc. Many international retail outlets also offer attractive discounts for forex card users.

2. Safe

With a forex card, you can carry multiple currencies safely without any fear. Most travel cards also offer comprehensive travel insurance and emergency travel assistance. So a forex card not only stores your money securely but also enhances the safety of your entire travel.

3. Convenient

If you want to travel to multiple countries, a multi-currency forex card is your best friend. You can use a forex card almost anywhere abroad without any security concerns. It eliminates the need to carry cash. And even if you need it, you can withdraw from any nearby ATM. You can track your expenses closely with a card and encash the balance once your trip is over.

To conclude

If you’re travelling to a foreign nation, having a forex card is a safe and convenient option to carry different currencies. However, with multiple cards in the market, it can become difficult to select the right one. Therefore, you must research well and carefully analyse your needs to choose the best prepaid forex card that fits your requirements.

If you’re looking for the best prepaid forex card with exciting features, Tata Capital has got your back. Contact us today to know more and travel worry-free!

Leave a Reply

Your email address will not be published. Required fields are marked *