These days plastic is in and cash is out especially if you are going abroad on a holiday. Most of the experts recommend travelers to opt for prepaid forex card while you are exchanging foreign currency at a leading currency exchange company in Chandigarh. Forex is an affordable and safer option than buying currency and is also a good hedge against the fluctuations in the currency rates. Here are few reasons why you must purchase a prepaid forex card to fund the expenses of your upcoming foreign trip.
- Accepted Almost Everywhere
These cards are not only accepted in shopping malls and fancy restaurants, they are even accepted by the taxis. If you are going to visit only a single country it makes sense in purchasing a single destination currency card. You can opt for a multi-currency card if you are a frequent traveler or are visiting multiple countries on a single trip. These cards are also valid for several years.
- Secure and Safe
From the security point of view, the dollar prepaid travel cards help mitigate the risk of losing cash in case of loss of wallet or theft. The forex card can also be hot listed to in case of loss of the card which ensures your amount remains safe. Moreover, both the card and PIN are needed to be able to access your money making it difficult for the person who finds the card to misuse it.
- Hedge against Fluctuation in Currency
These travel cards allow you to lock-in the exchange rate before you go abroad. The forex card thus protects you from the volatility of currency fluctuation. The rate which applies is the one that is applicable on the date of the purchase. As rupee generally depreciates the dollar is advisable to lock-in your rate before the trip.
- Economical than Debit and Credit Card
If you swipe your debit card or credit card outside India you end up paying more. This is because a card which is issued in India has an INR denomination. When such card is used outside India the transaction does not occur in INR. So you may have to bear a cross currency markup for every transaction.It is the currency conversion charge and lies in the range of 3 to 5 percent. As forex card is loaded with local currency you save on the markup cost.
- Cost-Effective than Currency Purchase
The prepaid forex cards are more affordable in comparison to buying foreign currency due to different logistics and cost dynamics involved. There is a difference of around 50 paise to Rs. 2. These travel cards can also be topped up easily whenever you run out of money. This can be done online as well as via phone by remitting the required amount in rupees from the savings bank account to the card provider who offers foreign exchange services in Tricity.
As per the experts, the travel card must be used only to make payments for goods and services while you are abroad. Do should not be used to withdraw money from the ATM as it may attract a fee per transaction.
Do you like the benefits of forex card we have mentioned? Please share your feedback and let us know if you want to add something to it!