Is Forex Card Better Than Exchange Cash At Airport
Blog Outline
Traveling to a new destination is exciting and terrifying at the same time. You have spent significant time and money planning your trip, from commuting to accommodation. Next, you will spend some time considering how to handle expenses overseas.
Managing expenses on international trips can be challenging, especially when running a strict budget. In such cases, having an international debit card or a forex card can help to manage the expenses. When it comes to international travel, managing finances efficiently is a crucial aspect of a seamless journey. One common dilemma faced by travelers is whether to opt for a Forex card or exchange cash at the airport. Both options have their advantages and disadvantages, and choosing the right one depends on various factors. In this article, we’ll delve into the pros and cons of each to help you make an informed decision for your next trip.
This article by GoNiyo will guide you through how to withdraw cash from a forex card and list some well-known cards with minimal or free foreign currency exchange rates.
Advantages of Forex Card
1. Convenience and Security:
One of the primary reasons travelers are increasingly turning to Forex cards is the unparalleled convenience they provide. These cards come pre-loaded with a specific currency, eliminating the need to carry large sums of cash. This not only streamlines transactions but also significantly enhances security during the journey. With reduced reliance on physical currency, the risk of loss or theft is mitigated, offering peace of mind to travelers exploring diverse corners of the world.2. Exchange Rate Lock-in:
A standout feature of Forex cards is the ability to lock in exchange rates at the time of loading the card. This means that travelers can secure a fixed rate for their transactions, shielding them from the unpredictable fluctuations in currency exchange rates. This rate lock-in feature empowers travelers with a transparent and predictable financial landscape, allowing for better budgeting and financial planning throughout their journey.3. Global Acceptance:
Forex cards score high on global acceptance, making them an ideal financial companion for international travel. Accepted at ATMs, hotels, and retail outlets worldwide, these cards offer unparalleled flexibility in accessing funds across various destinations. With Forex cards, travelers can seamlessly make transactions in the local currency without the hassle of frequent currency conversions, ensuring a hassle-free and enjoyable travel experience.4. Trackable Transactions:
Modern Forex card providers understand the importance of transparency and control for travelers. As a result, many offer online platforms or mobile apps that allow users to track their transactions in real-time. This level of transparency is invaluable, enabling travelers to keep a close eye on their expenses and manage their budget effectively. With the ability to monitor transactions on-the-go, travelers can make informed financial decisions, ensuring their spending aligns with their budgetary constraints.The Pros of Cash Exchange at the Airport
1. Immediate Access to Local Currency:
When opting for cash exchange at the airport, one of the primary advantages is the immediate access to the local currency of your travel destination. This proves highly beneficial, especially upon arrival, as it eliminates the need to search for currency exchange services in unfamiliar surroundings. Travelers can conveniently obtain the local currency at the airport’s currency exchange counters, ensuring they are well-equipped to cover initial expenses such as transportation fares, minor purchases, or any other immediate financial needs. This quick access to local currency streamlines the beginning of the journey, providing a hassle-free transition from the airport to the traveler’s destination.
2. Emergency Backup:
Carrying some local currency in cash serves as a valuable contingency plan, functioning as an emergency backup in unforeseen circumstances. While the prevalence of digital payment methods is on the rise, certain situations may arise where card acceptance becomes problematic. Technical glitches, temporary unavailability of card services, or issues with electronic payment systems can occur. In such cases, having cash on hand provides a reliable fallback option, ensuring that essential expenses can still be covered. This emergency backup is particularly advantageous in areas where digital transactions are not widely accepted or during instances of unexpected card-related issues, offering a sense of financial security and preparedness to the traveler.Disadvantages of Forex Card
1. Initial Loading Fee:
Forex cards, while advantageous for various reasons, come with certain disadvantages, and one notable aspect is the initial loading fee. When travelers first load their Forex cards with a specific amount of currency, some providers may impose a fee for this service. This initial loading fee can vary among different Forex card issuers and is typically a percentage of the total amount being loaded onto the card. It’s essential for travelers to carefully review the terms and conditions of the Forex card they choose, including any associated loading fees or currency conversion charges. Being aware of these fees allows travelers to assess the overall cost-effectiveness of using a Forex card compared to other currency exchange methods.
2. ATM Withdrawal Charges:
Another significant disadvantage of Forex cards lies in the potential charges associated with withdrawing cash from ATMs. While these cards are designed to provide convenient access to funds, especially in local currencies, utilizing forex card for cash withdrawals may incur additional fees. Forex card providers often impose charges for ATM transactions, which can include both fixed fees per withdrawal and a percentage of the withdrawn amount. It is crucial for travelers to be well-informed about these ATM withdrawal charges to avoid unexpected expenses during their journey. Careful consideration of when and how often one needs to withdraw cash, in conjunction with understanding the associated fees, is crucial for effective financial planning while using a Forex card.Cons of Cash Exchange at the Airport
1. Unfavorable Exchange Rates:
When exchanging currency at the airport, travelers often encounter less favorable exchange rates compared to other currency exchange outlets. Airport currency exchange services typically charge higher fees and offer lower rates, resulting in travelers receiving a lower value for their money. This discrepancy is primarily due to the convenience factor provided by airport exchange services, where travelers may opt for the ease of immediate currency conversion despite the financial trade-off. To maximize the value of their currency exchange, it is advisable for travelers to explore alternative options, such as local banks or independent currency exchange offices, where more competitive rates may be available.2. Security Risks:
Carrying a substantial amount of cash while traveling poses inherent security risks for individuals. When exchanging cash at the airport, travelers may find themselves with a significant sum that becomes susceptible to theft or loss. The threat of theft is particularly prominent in crowded and busy airport environments where pickpockets or opportunistic individuals may take advantage of distracted travelers. Additionally, the loss of physical currency is irreversible, and travelers may face challenges in recovering the funds.Can we withdraw cash from Forex Card?
How To Withdraw Cash From Forex Card?
- Locate the nearest ATM when abroad.
- Insert the card and wait for the machine to process the activity.
- The screen will display three Forex card cash withdrawal options: Checking/Current, Credit, and Savings.
- It is better to select the “Checking/Current” option. However, you can pick the “Credit” alternative if the former is not there. Do not to click on the Savings option. VISA network does not link to it; hence your transaction will fail.
- You have to follow the instructions the screen shows for foreign currency withdrawal at the ATM.
- Select the option to “Withdraw.”
- Enter the PIN and the amount you desire to collect in local currency.
- Take the cash and remove your card from the machine.
- Cash withdrawal charges
- Balance inquiry charges
- International SMS alert charges
- Cross currency markup charges
- Charge slip retrieval charges
- Statement request charges
Why Use Niyo Global Card As Your Payment Partner?
- Fast online booking
- Zero forex markup
- Tap and Pay transactions
- An app to track cash
- Complimentary airport lounge access
- 7.5% interest on savings with a monthly payout
- In-app Currency Convertor to instantly know how much your purchase will cost in any currency
- In-built ATM locator to facilitate foreign currency withdrawal at ATM
- Lock, block, or unlock your card at your convenience
- Over 150 currencies are available
- Account opening process is entirely online in the Niyo Global app
- Easily add money in INR using UPI/NEFT/IMPS without any charges
- Manage your payment limit across multiple payment channels
Forex Card Comparison On Charges
| Forex Card | Exchange Rate | Withdrawal Limit (per day) | Charges (per withdrawal) | Notes |
| HDFC Multicurrency Forex Card | Up to 2.5% markup | Varies by currency | $2-5 | Multiple tiers based on card variant |
| ICICI Forex Card | Up to 3.5% markup | $2,000 | $2 | Additional charges may apply for specific currencies |
| Niyo Global | Interbank rate + 0% markup | $1,200 | $1-3 | Refer to app for full fee details |
| AXIS Forex Card | Up to 3.5% markup | $1,000 | $2.25 | Additional charges may apply for specific currencies |
| IDBI Global Currency Card | Up to 3.5% markup | $3,000 | $1.50 | Additional charges may apply for specific currencies |
Conclusion
Frequently Asked Questions
Determining the best forex card for students depends on individual preferences and needs. However, the Niyo Global card is often considered a favorable option for students. It offers benefits such as zero markup fees, real-time currency conversion, and the ability to load Indian Rupees and spend in over 150 countries. Its features make it cost-effective and convenient for students managing expenses during international travel.
Withdrawing money from your Niyo Global card is a straightforward process just as a normal forex card cash withdrawal :
- Locate an ATM with the card network (Visa or MasterCard).
- Insert Niyo Global Card
- Enter the Personal Identification Number (PIN)
- Select Withdrawal Option
- Choose the desired withdrawal amount in the local currency.
- Confirm the transaction and wait for the ATM to dispense the requested amount in cash.
While most ATMs around the world accept Forex cards, it’s advisable to use ATMs affiliated with major card networks like Visa or MasterCard to ensure smooth transactions. Some ATMs may have withdrawal limits, so be aware of those.
Yes, there may be fees associated with forex card cash withdrawals, including ATM withdrawal fees, currency conversion fees, and service charges. Check with your Forex card provider for the specific fee structure.
Yes, there might be daily or per-transaction withdrawal limits set by your Forex card provider. It’s crucial to be aware of these limits and plan accordingly.
