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Before learning about a forex card, you need to first understand what exactly forex is. The term ‘forex’ is made up of two words namely ‘foreign’ and ‘exchange’. It refers to the process of conversion of one country’s currency into another for travelling, trading or investment purposes. Now, it’ll be easier for you to understand what a foreign exchange (forex) card is. It is basically a prepaid card that lets you easily load and then spend foreign currency while you are traveling abroad.
When you load this card, you conduct foreign exchange transaction. This allows you to spend abroad without worrying about currency conversion or fluctuating exchange rates. In this blog post, we shall discuss what a forex card is in detail and also shed light on some of its main benefits. If you’re planning to travel overseas for a business trip or for a vacation, we recommend that you go through this blog post.
Forex card is also known as foreign exchange card and prepaid travel card. It is a special type of card that lets you load foreign currency before you travel abroad and use it like debit card internationally. You might be wondering why you should get a forex travel card instead of just carrying foreign cash. Well, to put it simply, using this card is much safer. It is also much more convenient and much more cost effective than handling physical foreign cash that may get stolen or lost during the travel.
In India, the foreign exchange cards are issued by authorized banks as well as certain fintech platforms in compliance with Foreign Exchange Management Act (FEMA), 1999, as well as regulations and guidelines issued by the Reserve Bank of India (RBI) from time to time. Examples of forex travel cards issued by authorized banks are HDFC Bank Multicurrency Platinum ForexPlus Chip Card, ICICI Bank Multi-Currency Forex Prepaid Card and Axis Bank Multi-currency Forex Card.
Examples of forex cards issued by fintech platforms are Wise Travel card and Niyo Global Forex Card. The Indian-issued prepaid travel calls are only intended for international travel. Using them, you can make payments for hotels and shopping and also make ATM withdrawals. However, such cards cannot be used within India. You cannot use them in Nepal and Bhutan either.
With a foreign exchange card, you can load multiple kinds of foreign currencies and lock in exchange rates. The card lets you avoid high fees and currency fluctuations when you are traveling abroad. It basically works like a debit card at ATMs and merchants around the world. The money is taken directly from the balance you loaded in the card.
There are many forex card benefits. Some of them are listed below by us to help you understand how useful and convenient this card can truly be:
Using this card, you can lock in foreign exchange rates. So, when you're travelling overseas, it helps to protect your travel budget from getting affected by currency fluctuations.
It is much safer to carry a forex travel card than carrying foreign cash. The cash can be easily stolen and then used. However, even if a forex travel card gets stolen, the thief cannot use it unless he has the PIN. Also, the card can be instantly blocked after getting stolen.
Many forex travel cards allow you to load multiple currencies rather than a single currency.
Int’l debit cards generally charge higher transaction fees. Therefore, forex travel cards are undoubtedly a much better and cheaper option for international travellers.
The forex cards may provide cardholders with certain special privileges and discounts when they are travelling abroad.
Many forex card providers allow customers to apply for a card online via their website or app. If such a page is not available or difficult to find, you can contact the provider’s customer service number listed on the official website or visit a nearby branch.
Foreign exchange cards are quite important when traveling abroad. They allow cardholders to make necessary payments like hotel bills and shopping bills. Compared to carrying physical cash, they are much safer and offer a higher level of convenience. Moreover, these cards offer protection against currency fluctuations and let cardholders manage their travel expenses in a much better way.
Interested in setting up a foreign exchange business in India? If so, do not hesitate to get in touch with our experienced FFMC consultants at Registrationwala. We’ll help you in making your dream come by offering assistance in obtaining FFMC license from the Central Bank.
Q1. Which forex cards are best for students?
A. The best forex cards for students travelling abroad include, but are not limited to, the following: (i) Niyo Global Card, (ii) ICICI Student Sapphiro Card and (iii) HDFC ISIC ForexPlus Card. These cards support multiple currencies rather than one, single currency.
Q2. Can forex cards be used in India?
A. No, the Indian-issued forex travel cards can only be used for making payments or withdrawals during your travels abroad. Therefore, you cannot use them in India. You cannot use them in Bhutan and Nepal either.
Q3. Can I withdraw money from forex cards?
A. Yes, you can certainly withdraw money from a foreign exchange card at an ATM in a country when you travel overseas.
Q4. Can a forex card be used to withdraw money from ATM?
A. Yes. Forex cards almost work like debit cards when travelling abroad. Using this card, you withdraw local currency from ATM of the country you are in, in a pretty convenient manner.
Q5. Who issues forex cards in India?
A. They are issued in India by RBI authorized banks like HDFC, SBI and AXIS Bank as well as certain fintech platforms like BookMyForex and Niyo Global.
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Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.
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