A holiday is considered as one of the most looked-for times of the year & it allows you to take a breather from the mundane activities and rejuvenate oneself. When planning to travel internationally, whether for business or leisure, indulging in carefree shopping & exploring the foreign land is what we all hope for.
In short, Forex Card Vs International Debit Card, the main differentiator is that forex cards do not have a savings account linked to any bank account. Moreover, International debit card lets you withdraw money from foreign ATMs
It has also been increasingly popular for students & aspirants to spread their wings and dream of studying overseas. But this thrill can be dispirited by the inconvenience of carrying cash. With globalisation becoming the crux of our lives, & the ease of transporting the world, traveling has become the benchmark for many. While traveling has engaged in ease & technology, so is the way you pay while on your sojourn. Let’s dive deeper into the multiple options to carry money in a safe way internationally specifically.
Forex Cards – Advantages & Drawbacks
Frequent travelers testify for Forex cards & legitimately so. These are considered the most secure way to carry international currency as they come up with an abundance of security systems that bolster their levels of safety. Forex cards are prepaid credit cards wherein you can deposit funds in foreign currency of your choice to the preferred location you are traveling & are not linked to any particular bank account. Along with using the Forex cards for merchant payment transactions, it can also be used for withdrawal of money from ATMs.
Need to pay your university fees and living expenses abroad?
Make international money transfers easier than ever! Enjoy no paperwork, secure & swift transfers, and real-time tracking.
Types of Forex Cards
In the event to accommodate the requirements of every type of traveler, there are distinct types of Forex cards available.
Single-currency forex cards
As the name suggests, these types of forex cards can be recharged prepaid with one currency at a time. The card can be topped up when in need.
Multi-currency forex cards
This type of forex card can be preloaded with multiple currencies based on the type of card chosen.
In addition to this, there are some forex cards which are issued to privileged bank customers which are by an invite-only. These types of cards come with special benefits & rewards.
Benefits of Forex Card for Students and Travellers
Here are some of the benefits and features of Forex cards
- Safe & secure to use overseas in the view of their bolstered security features.
- Their pre-loaded feature makes it effortless to spend & shop overseas
- Their universal acceptability, locked-in exchange rates, easy accessibility, multi-currency feature, endorsed protection makes them the beloved of frequent international fliers.
- A cheaper alternative to debit card, credit card & carrying cash overseas.
- In the event of theft or loss, the forex cards can be frozen by contacting the respective bank or the financial institution.
- Few of the card holders can temporarily block & reactivate the card again when traveling overseas again. This way, there are no hassles of additional maintenance charges & penalties for lack of use.
- The currency exchange rate is not volatile to market risks.
International Debit Cards: The Affordable Alternative to Forex Cards?
International debit cards are the cards that act like the forex cards but come with additional charges. The main differentiator is that forex cards do not have a savings account linked to any bank account. Moreover, International debit card lets you withdraw money from foreign ATMs. International debit card is not a separate card, it is the same as the domestic debit card with global access. You need to activate the international debit card service on the local debit card for transactions internationally. This helps you in not applying for a separate card for international transactions or investing in buying forex cards with higher currency exchange rates.
When the funds in your accounts are parked in the local currency (INR), upon swiping or withdrawing the money in foreign land, the payments & withdrawals will occur in foreign currency. The bank will levy nominal fees for the currency conversion rate and lend you to spend in foreign currencies. International debit cards act as a back-up option in case you ran out of your pre-loaded funds in your forex cards when traveling internationally.
| Maximum Transaction Limit | Rs.40,000 to Rs.2.75 lakh |
| Maximum Purchase Limit | Rs.75,000 to Rs.6 lakh |
Also read: Studying Abroad? How Money Transfer Apps From India Can Simplify Your Financial Management
Best International Debit Cards Available in India
- SBI International Debit Cards
- HDFC EasyShop Platinum Debit Card
- ICICI Bank Sapphiro International Debit Cards
- Axis Bank Burgundy Debit Card
- YES World Debit Card
- HSBC Premier Platinum Debit Card
- HOP International Debit Card
What bank in India offers the best rates in forex cards?
Let’s look at the banks which offer the best rates in forex cards in India.
- YES Bank Multi-Currency Forex Card
With the bolstered security & cost-effectiveness, YES Bank provides one of the best Forex cards in India. This card allows you to preload with 15 different international currencies. The YES bank Multi-Currency card comes with the two years of guarantee during which the card can be loaded as many times and can be used on multiple trips.
- Axis Bank Multi-Currency Forex Card
This card lets you load in 16 popular countries in the world for hassle free travel experience & gives security against currency variation. The validity of the card can be seen on the front-side of the card and can be reloaded & used in various locations. The initial issuance fee is INR 300 plus GST. For INR 100, you can reload the card with the desired amount.
- HOP Card by moneyHOP
HOPCard is a Debit+Forex card powered by Visa linked to a multicurrency bank account which can be accessed via your phone on HOPApp. moneyHOP offers the card as a prepaid debit+forex card and opens a bank account with SBM bank. The HOPApp allows you to access all the services concerned with transactions and card controls without having to physically visit the bank. So let’s just say that if you swipe the card somewhere in the UK, you will only be charged a GBP/INR rate and no extra convenience fee. You will also have access to multiple currency wallets.
As a result, you can transfer money in INRs to your account and then swipe it anywhere in the world. Let’s simply state that you will only be charged SGD/INR if you swipe your card in Singapore. Afterwards, if you swipe your card in Japan, you’ll be charged at the JPY/INR exchange rate. Moreover, there are no cross-currency fees. The card can be used on any PoS device in India as a debit card as well. The same card can be used for internet purchases as well, which is helpful in situations where making travel arrangements in a foreign currency is necessary.
Related blog – HopCard vs Forex Card
Benefits & Features of HOP Card
- No joining fees
- No charges on adding or withdrawing INR
- No currency conversion charges, cross-currency conversion or hidden charges, Zero Forex Mark-up.
- Acceptance in more than 180 countries
- Works as both Debit and Forex card.
- Mobile app HOPApp to manage the card. One can easily track expenses, transfer money, block/unblock cards, etc through the app itself.
- Multi Currency wallets to save from exchange rate volatility.
Why pay more for international money transfers when moneyHOP is here?
- NO hidden fees
- ZERO convenience fees
- Real-time updates
- Lowest exchange rates
What is the best way to carry money abroad?
If you are traveling overseas, you are well aware that you will need to bring foreign currency with you in order to cover your costs. How should you carry your foreign currency? What payment method is the best and most affordable? Cash a Forex card, or a Debit card? Let’s take a closer look at how each card differs from the other.
| Forex Card | Debit Card | Cash | |
| Understanding the Cards | Forex cards are the travelers favorite & safest form of carrying cash overseas | Debit cards function like forex cards but comes with added charges & fees | The most traditional & local currency notes of the foreign land |
| Best Utility | For all spendings overseas | All spendings & withdrawals of foreign currencies from ATM | Until you run out of cash & find the nearest ATM |
| Acceptability & safety | Accepted at all merchant outlets & comes with pin protection & can be replaced within 24hrs in case of theft or lost. | May get declined due to security issues & not protected against theft or lost | Everywhere & least safe. |
| Exchange rates | Offers the best rates & the rates does not fluctuate once the card is preloaded | Offers the best exchange rates but fluctuates everyday | Similar to Debit card |
| Charges & Fees | Zero transaction fees | Ranges between 2% to 5% transaction fee. Cash withdrawals include international ATM fees & foreign exchange rates | Foreign currency values vary based on the day’s exchange rate |
| Convenience | Comes with a pre-set expense limit, & forex can be booked anytime, anywhere | Does Not provide the same spending controls | How will you cope if you run out of cash in the event of an emergency? |
After looking at the snapshot of costs & benefits of carrying Forex Card, Debit Card & Cash while traveling internationally, it is advised to carry most of your international currency in Forex cards which accommodates all your requirements. Keeping a percentage of currency in Cash & Debit cards as a backup can be beneficial. With Forex Cards, one is enticed by the promise of saving money on currency swings but ends up shelling out much more in fees and other costs.
Leave a Reply