What Are Multi-Currency Forex Cards?

Forex Cards provide a better exchange rate to load currencies as opposed to purchasing foreign currency in the form of cash. For most banks offering Forex Cards is a cheaper option. In most cases, you will receive a 50 Paise difference as the exchange-rate markup for a Forex Card, in comparison to a Rs 2 markup for purchasing US Dollars.

The Forex Cards have foreign currency loaded at a locked-in exchange rate. This means the currency will not be affected by fluctuations of the currency value within the forex markets. So if you have 1000 USD loaded on your Forex Card, the value remains 1000 USD regardless of the fluctuations in INR-USD exchange rates.

Carrying a Forex Card is also much more secure than cash since they include pin and chip technology to safeguard your money. If your Forex Card is stolen or lost, you can have the card blocked immediately, which will automatically freeze the balance. You can then apply for a secondary Forex Card, and the funds from the original card are transferred over to the new card. Visit https://www.baanx.com/multi-currency-debit-cards.

Forex Cards can also be used for carrying more than one foreign currency at a time in one card. For example, the Axis Bank Forex Card available through ExTravelMoney allows the cardholder to use up to sixteen different currencies such as the DKK (Denmark Krone), AUD (Australian Dollars), HKD (Hong Kong Dollars), NZD (New Zealand Dollars), SAR (Saudi Arabian Riyals) OMR (Omani Rial), SGD (Singapore Dollars), CHF (Swiss Franc), JPY (Japanese Yen), SEK (Swedish Krona), GBP (United Kingdom Pounds), THB (Thai Baht), USD (United States Dollar), EUR (Euro), and  AED (United Arab Emirates Dirhams)

Forex Cards are also not subjected to additional charges if you swipe them at PoS counters abroad, which is unlike Credit and Debit Cards. At the same time, Credit and Debit cards used abroad charge a significant fee for exchange rates, which usually costs around 5% to 11% extra on each transaction charge.

No DCC (Dynamic Currency Conversion) Fee

Since the Forex Cards are loaded already with a local currency of that foreign country, DCC (Dynamic Currency Conversion) fees won't apply when you use the card abroad. This fee is always present when you use a Credit or Debit card. DCC usually adds an extra 3% to 5% charge to each transaction cost.

Forex Cards are also universally accepted and recognized, unlike the Traveller's Cheque which is now regarded as one of the outdated payment instruments. At the same time, you can use a Forex Card to withdraw cash from most ATMs when you are abroad.

With the Traveller's Cheque, you would first need to find a business establishment or bank, that will accept it. Even some of the taxi services in certain countries will accept Forex Cards as a form of payment. In fact, Forex Cards can also be used for an online transaction while abroad, including ordering an item through an e-commerce platform while abroad. This is made possible since these cards work on the MasterCard or Visa network similar to regular Credit and Debit cards.