Things to Know Before You Apply for Forex Card
One of the most important things you need when you want to travel abroad is foreign exchange. Indian Rupee is not a freely convertible currency. This means it is not accepted as a standard payment in international countries. Precisely why when a person travels internationally, they are required to carry foreign exchange. Using credit cards can be costly because of card fees owing international usage. Therefore, a person should consider a travel card.
A forex card is a prepaid card that is loaded with a fixed amount of foreign exchange. The card can be used just like a debit card. It can be swiped at merchants and can be used to withdraw cash from an ATM. It is also possible to reload the card remotely through internet banking. Applications are simple and hassle-free as well.
However, before you apply for a travel card, you need to know a few things that can help you take a decision –
- Charges on forex card:
It is a misconception that there are no charges involved. You need to pay a basic fee to the bank to get the forex card issued. Apart from this, there are expenses to reload the card or add any foreign currency. However, it is possible to reload your card remotely via net banking or mobile banking app. These charges are transparently displayed on the bank’s website.
Besides, there is a fee for checking the balance on the card or for ATM withdrawals. These charges depend on the currency and the country of travel. There are cross currency conversion charges. It means, if you make a withdrawal or swipe in a currency that is not loaded on the card, it converts the currency and makes the payment. At the same time, it charges for this conversion.
- Balance checks:
Many cards send an SMS or email whenever the card gets swiped with information about balance remaining. Apart from this, it is possible to check the balance on your card through internet banking. This helps you save on charges for balance inquiry through the ATM.
Most banks need a copy of air travel tickets and visa copy to authorise the forex card. Some authorised dealers require only the passport copy and KYC details. The maximum amount of foreign exchange that can be loaded depends on the foreign exchange rules set by RBI in FEMA i.e. USD 2.5 million.
- Daily limit:
Some travel cards come with a daily limit on the amount that can be spent. It is better to inquire with the bank about the same.
- Application procedure:
The application procedure is extremely simple. You need to fill up a form and provide your visa and passport copies if the bank requires. Some may also need a copy of the airline tickets. If you are applying for a travel card through an online company, you can do so.
Most banks issue duplicate copies of the card and provide 24*7 customer service. This makes it very convenient and preferred while making international travel.