International transactions in foreign currencies come with a Forex markup fee, which can be up to 3.5% for every transaction you make through your credit/debit card. An effective way to avoid this extra expenditure is to opt for a Forex Card for your international travel.Continue reading to know what a Forex card is and how you can choose the best Forex card for a Europe trip.
What are Forex Cards?
A Forex card is a prepaid card that you can load with a specific amount in a currency of your choice before travelling to any international destination.
Also called a travel card or a foreign exchange card, the best Forex cards for Europe can allow multiple currencies to be loaded into a single card.
There are two options when choosing a Forex card for Europe, which include:
Single-currency
This Forex card type is designed to load a single currency and reload it when there is no balance left on the card.
Multiple-currency
This type allows you to load multiple currencies according to your travel requirements. It is the best Forex card for students going to Europe, especially as they will be required to travel across the Schengen Area throughout their course duration.
Features and Benefits of Forex Cards
These are the features that the best Forex card for European travel should include, which also serve as the advantages of using this card.
Its design includes chip and PIN software technology for enhanced security.
The exchange rate is locked in at the time of loading your amount, sparing you from currency fluctuations.
This card can help you keep track of expenses and prevent overspending.
You no longer need to worry about paying high foreign markup fees.
It can be used for online shopping, swiping at payment terminals and withdrawing cash from ATMs.
You will receive alerts through emails and SMS every time you load or make a purchase using this card.
The process for obtaining a Forex card is generally simple and straightforward, and the fee structure is transparent.
Certain Forex cards provide you with options like access to international lounges and zero markup fees.
How to Choose the Best Forex Cards
The parameters that can help you find the best Forex card in India for Europe are provided below:
The Exchange Rate
Check whether or not the exchange rate that the provider offers matches the actual exchange rate. You can compare the rates online to find out if the exchange rate charged by the provider includes hidden fees or not.
Mobile Support Feature
A Forex card with a mobile app allows you to conduct financial transactions and monitor your expenses seamlessly.
Associated Fees
While most providers charge a conversion or transfer fee, it is best to read the fine print to learn whether or not they charge other fees, such as non-supported currency fees, ATM withdrawal fees and Annual fees.
Supported Currencies
It is best to find a Forex card that supports multiple currencies rather than own several Forex cards for different global currencies. Look for a Forex card that gives you access to multiple currencies without charging any extra fees.
Security Features
Make sure that the Forex card you opt for features chip and PIN software. Not only is it mandatory in Europe to use such cards for swiping and cash withdrawal, but this technology also keeps your card more secure.
ATM Withdrawal
There are times when you will need to withdraw local cash from ATMs across Europe. Make sure that the provider you select does not levy heavy fees for such withdrawals. It is best if they allow free withdrawals from ATMs.
If you are keen on carrying other payment modes along with a Forex card, you can opt for
Europe credit cards while touring this region.
Conclusion
While using a Forex card is highly recommended for your Europe trip, you should equip yourself with knowledge about which provider offers the most cost-effective yet secure Forex card for your travel requirements.
Additionally, owning the right insurance for your travel can help you in ways that a Forex card cannot. So, they both require adequate time for research.
Also, remember to buy a valid travel insurance plan. Since the Schengen region covers most of Europe, it is crucial to remember that you cannot travel to Schengen countries without a Schengen Visa and a Schengen travel insurance policy.
Reliance General Insurance provides all-encompassing Schengen travel insurance plans that ensure you enjoy your trip without any hiccups. Explore our website to learn more.
Frequently Asked Questions
Can a Forex Card be used in India to make online and offline purchases?
No, according to FEMA regulations, you cannot use a Borderless Prepaid Card to make offline or online purchases in India, Bhutan and Nepal.
Is it possible for a foreigner to obtain a Forex Card in India?
Yes, foreigners can purchase Forex Cards from authorised financial institutions and banks.