With the use of Forex card, a card holder can store and transfer money electronically when roaming overseas. It is used for making payments or acquisitions overseas at locked-in currency exchange rate. Another use of Forex card is also to withdraw foreign currency loaded on it via ATM's overseas. For all practical purposes, you can envisage Forex cards to be like debit cards in terms of usage. They are generally registered with either the Visa Network or the MasterCard Network hence making them acceptable for payments all across the globe. Forex cards can be either single-currency cards or multi-currency cards. As the name advocates, a single-currency card can only support a sole currency to be loaded and stowed in it. A multi-currency Forex card supports numerous currencies. Tourists can load and store currencies of diverse nations in the Forex card at best currency exchange rate. How does a Forex card work?At the time of buying a prepaid Forex card from a bank or money changer, the card is loaded with moneys. For instance, if you are going on a tour to both France and England, then both Euro and GBP (Pound) currency will be loaded into your multi-currency card. The Euro/Pound is loaded on the card at the prevalent currency exchange rate on the day of buying of the Forex card. When using the card, there might be a one-time initial activation fee. For shopping overseas, you can simply swipe the card at PoS depots and money will be subtracted from your account. The Forex card will automatically identify which nation you are in and pay using the pre-loaded local currency of that nation. For extracting money from ATM's overseas, there might be minor flat ATM withdrawal fee per ATM usage. If the Forex card has to be reloaded with funds, it can be done without difficulty. Forex cards offer superior exchange rates for loading currencies than purchasing foreign currency as cash. For banks, giving Forex cards is the cheaper alternative. Normally, you will get a difference of 50 paise as exchange rate markup for Forex card equated to Rs 2 markup for purchasing US Dollar. Forex cards are loaded with foreign money at locked-in exchange rates. Therefore, they are invulnerable to the vacillation of currency value in the Forex marketplace. If you have loaded 800 USD in your travel card, the value in it will be 800 USD irrespective of vacillations in INR-USD exchange rate.
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AuthorForex cards are loaded with foreign currency at locked-in exchange rates. Forex cards are tremendously convenient and manageable for overseas trip. Archives
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