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Benefits of using a forex card while travelling abroad
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Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.
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A few years ago, travelling abroad required a mandatory trip to a local foreign currency exchange office to convert the local Indian rupee to the foreign currency of the destination. You may recall your parents or a cousin who went abroad to study doing this. But now, times have changed, and how!
You no longer need to carry wads of cash and currency when you travel internationally anymore. Instead, all you need is a handy forex card that sits conveniently in your wallet. If you’re planning an international vacation or a business trip abroad, here’s everything you need to know about a forex card and how it can be a game-changer.
What is a forex card?
A forex card is simply a prepaid travel card that you can recharge with the required foreign currency before you travel abroad. Once you’ve done this, you can use the forex card just like a regular debit card to pay for your purchases internationally. That’s not all. You can even withdraw cash abroad from ATMs using your forex card.
Based on the type of foreign currency that you can load onto the card, there are two types of forex cards that you can choose from, as explained below.
In a single currency forex card, you can only add one type of foreign currency. You may have to pay steep cross-currency costs if you use any other kind of currency on these cards. Needless to say, the use of these cards is limited.
As the name indicates, multi-currency forex cards can be loaded with different foreign currencies. This means they can be used in different countries without any extra charges whatsoever for loading multiple currencies.
4 ways in which a forex card can benefit you on your next trip abroad
A forex card can be extremely useful for international spending. It makes your trip much easier and offers a ton of advantages. Check out the top 4 benefits of using a forex card when you’re travelling abroad.
1. Easy shopping and spending abroad
With a forex card in your wallet, shopping for products and paying for your purchases abroad gets much easier. You simply need to swipe the card just like a regular debit card, and your payment will be processed almost instantly. Also, the best part is you need not pay additional charges when using your forex card at PoS terminals or even online. And there’s no limit on the spending either — you can recharge as much as you can and use it to shop abroad.
2. Hassle-free cash withdrawal
You may not always be able to pay with a card at various outlets abroad. Some smaller businesses and shops may prefer to be paid in cash. Fortunately, your forex card can be handy even in such situations. All you need to do is find a local ATM and use your forex card to withdraw money in the local currency. Keep in mind that you need to have money recharged or loaded onto the card. Also, you may be charged a flat fee for using the ATM to withdraw cash. However, the overall benefit of having easy access to cash abroad remains unchanged.
3. Elimination of the need for currency exchange
Without a forex card in your pocket, you will typically have to look for foreign exchange outlets in India to convert local Indian currency into foreign money before your trip. Additionally, if you need extra cash during the vacation or the trip, you must find foreign exchange outlets abroad and convert your Indian money to foreign currency. With a forex card, you can avoid all this hassle and simply pay on the spot for your purchases.
4. Additional beneficial features
Forex cards also come with various additional features that give you extra benefits. For instance, some cards give you comprehensive travel insurance for various contingencies that could arise when you are out of the country. Then, there are forex cards that also give you 24x7 concierge services that can make your trip more convenient. Some banks also offer forex cards that give you access to a select number of international airport lounges.
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Conclusion
Now that you know how a forex card can benefit you, you know just what to do when planning your next international trip. Check out the many different options available online, compare the features and benefits, and choose the best fitting your requirements. And when you do, remember to read the terms and conditions so you know how to maximise your card's benefits.
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