What is a multi-currency forex card, and what are the costs to keep in mind before buying one?

Multi-currency forex card or forex travel card is a prepaid card that comes preloaded with multiple foreign currencies and enables you to manage your money abroad. If you are a frequent traveler, buying a forex travel card is as crucial as obtaining travel documents, such as a passport, travel visa, ticket, etc. It is the best travel companion that looks after your expenses abroad without giving you the stress of currency conversion charges.

A multi-currency forex travel card enables you to load multiple foreign currencies at once. You can make international bookings and payments at merchant outlets, clubs, cinemas, airlines, stores, etc at zero extra charges. It offers a safer and easier way to carry foreign currency abroad compared to a credit card or traveler’s cheques.

A multi-currency forex card comes with a host of features and benefits that you can avail yourself of to enjoy hassle-free travels. Here are the top things to do before getting a forex card:

• Assess your needs

It is imperative to valuate your needs before buying a multi-currency forex card. You will need to understand the number of countries you are visiting and how much you should load onto your forex card. It is worth noting that a multi-currency forex card can be loaded with up to 10 to 20 foreign currencies at once, depending on your service provider.

• Buy a forex card well in advance

After submitting your application, you can collect your forex card within 2 to 4 working days. It is advisable to purchase a forex card at least one week before traveling to foreign countries. The reason is that it enables you to avoid last-minute panic. Although you can activate your forex card within 24 hours, it can get delayed due to unforeseen circumstances. So, if you have ample time in your hand, you can resolve any issues related to your forex card before leaving India.

• Compare different rates

The foreign exchange rates vary across different forex card providers. So, it is imperative to compare the foreign exchange rates offered by various service providers. Make sure to choose a forex card provider that offers affordable foreign exchange rates in the market. It is worth noting that the foreign exchange rates are determined while loading your forex card. It means that you are immune to fluctuating throughout your journey.

Know the costs involved

The foreign exchange rate is not the only cost associated with a multi-currency forex card. Other terms directly impact the total cost of buying a forex card in India, such as:

• Card Issuance Fees: It is a fee levied by the bank for issuing a multi-currency forex card.
• Cash Withdrawal charge: You can use a forex card to withdraw cash from any visa-enable ATM abroad without incurring currency conversion charges. But, you will have to incur a nominal withdrawal fee on each transaction.
• Balance inquiry fee: It is the cost you will have to bear to check the balance amount on your forex card.
• International SMS alert charges: You will have to pay a nominal fee for receiving SMS alerts abroad.
• Replacement card fee: If you happen to lose or misplace your forex card abroad, you can get a new one at a nominal fee.
• Statement request fee: If you wish to receive your transaction statements, you will have to pay a fee.
• Inactivity fees: It is worth noting that banks charge an inactivity fee if you do not use your forex card for more than six months.
• Cross-currency markup charges: If you make a foreign transaction in a different foreign currency than the one loaded onto your forex card, you will have to incur a cross-currency markup fee on each transaction.

So, getting a multi-currency forex travel card is the best way to currency foreign currency abroad. You can load it with the foreign currencies of your choice and also avail yourself of affordable foreign exchange rates. However, before getting a forex card, make sure to pay heed to the above-said tips to avoid unnecessary costs.

Your multi-currency forex card comes with embedded chip technology which is more secure than magnetic strip technology. It stores your sensitive information in an encrypted format, eliminating any chances of security lapse.