Multi-Currency Forex Card: Charges, Benefits, Purpose, Top Banks

Generally, the bank offers many services to provide assistance to customers and try to satisfy the financial needs of the customers. And with globalization, banks have expanded their services to international domains as well including foreign exchange, money transfer, etc Among these services, these cards are becoming popular as it provides real benefits while travelling abroad. And if you wish to know more about multi-currency forex cards, continue reading the blog

What is a Forex Card?

Forex means “foreign” and “exchange”. One of the most effective ways to carry money abroad is to carry a Forex Card. This card provides great convenience as it is accepted almost everywhere.  A forex card is basically carrying your foreign currency that enables easy travel to many foreign countries without worrying about the currency exchange. 

A Forex card is used for various purposes including leisure, shopping, business etc. It is a type of prepaid credit card that allows you to deposit funds in a foreign currency of your choice and the country you wish to visit. The card also allows you to withdraw money from an ATM. 

Also Read: Forex Market & Trading Concepts for Beginners

What are the Types of Forex Cards?

The following are the types of Forex cards:

Forex cards are a comparatively safe way of carrying money without actually carrying cash and incurring heavy charges when using a debit or credit card while abroad. Banks offer various types of forex cards in order to meet the needs of every traveller. 

The following are the two main types of Forex cards:

Single currency forex card: The single currency forex cards can be preloaded with one particular currency. They can be reloaded when required and depending on the need. 

Multi-currency forex card: As the name suggests, this card can be preloaded with multiple currencies, depending on the chosen card type. Many financial institutions and banks and even travel agencies offer a choice of cards that the applicant can choose from depending on the currencies to be loaded on the card

There are some forex cards that are issued or offered to only privileged banking customers and are invite-only. These cards have lower charges and fees along with additional perks and privileges.

Features of Multi-Currency Forex Card

The following are the features of the card:

• They offer a safe and secure way of making payments abroad as they provide all the security features of a credit card
• They provide an easier way to rein in spending when abroad since they are pre-loaded and the cardholder can decide on a budget and top-up the card when and if required.
• Another great feature of multi-currency forex cards is the ease of use and wide acceptance and the cardholder also does not have to worry about the hassle of finding an alternate method or an ATM 
• As there is no need of carrying around the currency, it reduces the risk of money theft and is highly convenient compared to cash or cheque transactions
• Having a forex card also protects the cardholder from fluctuations in currency values as the amount loaded in the card is based on that day’s exchange rate, ensuring it causes no potential loss as a result of changing money from day to day

Also Read: How to Apply for a Forex Card?

Charges for Forex Cards

The followings are the fees and charges applied on Forex cards:

Type	Description
Initial Fee	You are required to pay this amount when you are applying for the forex card
Renewal Fee	You are required to pay this amount each to you reload your card with currency or renewed
Add-on Card Charges	If applicable, these charges are levied on the additional provided card
Encashment Charges	This charge is levied when the balance amount in the card is cashed

How to Apply 

The following are the steps to apply for the card:

• You can either apply online or visit the nearest branch of the bank to apply for the card of your choice
• Many financial institutions and banks offer different cards depending on the types of benefits and perks that a customer can avail
• Once you are done selecting the card you wish to apply for, you can either apply online if the facility is provided or visit the nearest branch of the bank

Documents Required

• Copy of a self-attested passport
• Application form 
• Copy of Visa (if the trip involves multiple countries)
• PAN card 
• Copy of Airplane Ticket 

Also Read: Foreign Money Exchange

Best Multi-Currency Forex Cards in India

The following are the best multi-currency forex cards available in India:

• Thomas Cook Forex Card
• Induslnd Multi-Currency Forex Card
• HDFC Multi-Currency Platinum Forex Card
• Yes Bank Multi-Currency Travel Forex Card
• Axis Bank Multi-Currency Forex Card

Also Read: Education Loan Insurance

Benefits of a Forex Card

The following are the benefits of having a Forex card:

• They have locked-in exchange rates that protect the cardholder from fluctuations in the exchange rate 
• Having a Forex card saves you from the hassles of going for currency exchange in foreign locations
• As Forex card is accepted everywhere it allows you to shop anywhere in the world
• Forex cards also allow you to withdraw the cash amount loaded in the card from any ATM internationally
• Most forex cards have embedded chip technology which offers a more secure way than magnetic strip technology to make transactions 

FAQs

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