What is Forex Card - All An Indian Traveller Needs to Know
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A Forex card, also known as a travel card or currency card, is a prepaid card designed for travellers where you can load single or multiple foreign currencies before you travel abroad to make purchases or withdraw cash in the respective countries’ local currencies.
To understand what is a Forex Card, think of a debit/credit card for a foreign currency where you can load and withdraw the currency of your choice.
Heading overseas for an incredible adventure? Every Indian traveller knows the struggle of managing money abroad. Cash is a hassle to carry, while debit cards can come with hidden charges. But there’s another option: the Forex card!
This guide will break down everything you need to know about forex cards, from how they work to the different types available. By the end, you’ll be a forex card whiz, ready to explore the world (or at least your chosen destination) with financial peace of mind!
What is a Forex Card?
A Forex card, short for Foreign Exchange Card, is a versatile financial tool designed for effortless international transactions. It’s like an international debit card that allows users to load single or multiple foreign currencies onto a single card, which can then be used to make purchases or withdraw cash in the respective countries’ local currencies.
Forex cards often offer several advantages over traditional methods of carrying foreign currency, such as cheques or cash. They typically offer better exchange rates compared to exchanging currency at airports or banks. They also provide added security since they are not linked to your bank account and often come with lower fees than using a regular debit or credit card internationally.
Now, What is a Forex Card with Zero Markup
Most banks and international card providers charge a fee (markup) to facilitate payments in foreign currencies. With zero forex markup, however, there is no extra charge for this convenience, and only the network provider’s exchange fee (like Visa, Mastercard, etc) is applied.
Niyo Global card is a zero forex markup card, meaning there are no extra fees on international transactions.
Some benefits of having a Niyo Global Card are:
- Zero forex markup on all international transactions
- Free lounge access at select international terminals in India
- Load in INR use in 180+ countries and 130+ currencies
- Earn 1% cashback as global coins
- Card delivered in 2-3 days
- 24×7 in-app chat support
How Does a Forex Card Work?
In a way, a forex card works just like an international debit card. Here’s a breakdown of exactly how it works:
1. Before your trip:
Purchase the card: You can buy a forex card from banks, currency exchange services, or even online.
Choose your currency (or currencies): Depending on the card, you can load it with a single currency for your destination country, or some cards allow multiple currencies.
Load money onto the card: You can typically load the card through online banking, mobile app (if offered), or by visiting a branch of the issuer. The exchange rate is locked in when you load the card.
2. While you're travelling:
Use the card just like a debit card: You can use your forex card to make purchases at stores and restaurants that accept card payments.
ATMs: You can also withdraw local currency from ATMs abroad, although some cards may charge ATM withdrawal fees.
Track your balance: Many issuers offer mobile apps or online portals to check your card’s balance and transaction history.
3.Things to keep in mind:
Fees: Be aware of potential fees associated with forex cards, such as issuance fees, reload fees, foreign transaction fees, and ATM withdrawal fees.
Exchange rates: The exchange rate is locked in when you load the card, so it’s a good idea to monitor exchange rates before your trip to get the best value.
Unused balance: Some cards allow you to convert any leftover balance back to your home currency when you return, but there might be a fee. Check the card issuer’s policy.
Types of a Forex Card
To understand exactly what a forex card is, knowing the following two types is essential:
Single-currency forex card: This card is loaded with funds in just one specific currency. It’s ideal if you’re only visiting one country and know exactly how much currency you’ll need. However, using this card in a different currency will typically incur higher conversion fees.
Multi-currency forex card: This card offers more flexibility as you can preload it with funds in multiple currencies. This is a good option if you’re travelling to multiple countries or are still determining which currency you’ll use the most. You can often switch between currencies on the card to get the best exchange rate.
Also Read: What Is Foreign Exchange Rate? Demystifying Currency Values
What are the Benefits of Forex Card for Indian Travellers?
Forex cards offer several advantages over traditional methods of handling foreign currency while travelling. This makes the use of a forex card quite handy. Here are some of the key benefits:
- Security: Forex cards are generally safer than carrying large amounts of cash. If the card is lost or stolen, you can usually report it and have the remaining balance frozen. This minimises the risk of losing your entire travel fund.
- Competitive exchange rates: Many forex cards offer exchange rates that are more competitive than what you’d get at airport currency exchange booths or by using your regular debit card abroad. This can save you money on your travel expenses.
- Budget control: Since you pre-load the card with a specific amount of money, it can be a helpful tool for budgeting your travel expenses. You can easily track your spending and avoid overspending.
- Convenience: Forex cards are widely accepted by merchants and ATMs around the world, just like a debit card. This eliminates the need to find currency exchange offices or carry large amounts of cash.
- Multiple currency options: Multi-currency forex cards allow you to load funds in different currencies, offering flexibility for trips to multiple destinations. You can often switch between currencies on the card to get the best exchange rate.
- Additional features: Some forex cards come with additional features like travel insurance, airport lounge access, or purchase protection. These can add value to your travel experience.
Travel abroad with financial peace of mind. Introducing 0 forex markup fee, AKA the Niyo way to travel!
What is Forex Card’s Eligibility Criteria for Indians?
In India, eligibility for a Forex card generally boils down to the following criteria:
- Resident status: Indian residents and foreign nationals residing in India can apply for Forex cards.
- Age Criteria: Most banks require applicants to be at least 18 years old to apply for a Forex card. Some banks may have specific age restrictions or additional requirements for minors, such as providing consent from a parent or guardian.
- KYC compliance: To get a Forex card, you need to be KYC (Know Your Customer) compliant. This involves submitting documents that verify your identity and address.
- Bank Account: Applicants usually need to have an active bank account with the issuing bank or a partner bank to apply for a Forex card. This bank account is used for loading funds onto the Forex card and for any associated transactions.
Conclusion
Now that you know what is a Forex card, owning Zero Forex markup cards like the INR-based international Niyo Global Card can add up to your savings with their Zero Forex Card, meaning you benefit each time you make an international payment using it.
Hopefully, this article helped you decide on the best travel money card for you so that you can focus on travelling without worrying about money.
Frequently Asked Questions
In case of loss or theft, you should contact their card provider immediately to block the card and request a replacement. Many providers offer emergency assistance for such situations.
Yes, most Forex Cards offer online account management and mobile apps that allow travellers to track their transactions and balances conveniently.
You can load their Forex Card with the required amount in their home currency, which can help minimise the impact of currency fluctuations when travelling the world.
Some Zero Forex Cards may offer additional benefits such as cashback rewards, travel insurance, or discounts on educational expenses, depending on the card provider.
Yes, Forex Cards can be used for online transactions, such as purchases and subscriptions, offering Indian travellers a seamless and convenient way to pay for various services and goods over the Internet. With their wide acceptance and user-friendly features, Forex Cards ensures a hassle-free online transaction experience, enhancing their financial convenience on the go.
The time it takes to get a forex card varies depending on the provider and the method of application. Typically, if you apply online or through a mobile app, you can expect to receive your forex card within a few days to a week. However, some providers offer expedited shipping options for an additional fee, which can shorten the delivery time to as little as 1-2 business days.
For Niyo Global’s Zero Forex Card, after your Aadhar, PAN and Passport Verification, the card gets delivered to your doorstep within 3-5 days.
The Forex card number, also known as the card account number, is a unique identification number assigned to your forex card. It is typically a 16-digit number located on the front of the card. This number is used to identify your card when making transactions or inquiries, such as checking your balance or disputing a transaction.
Note that it’s important to keep your Forex card number confidential to prevent unauthorized access to your funds.
