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How Forex Cards Score Over Cash as a Safe Payment Option

July 09, 2018

Advantage of Forex Card over Cash

An important question that hovers over you as you set out for an international vacation is how to carry your forex. Previously, travelers’ cheques or cash were a popular medium for carrying money abroad. However, with the advent of debit/credit cards and forex cards, our alternatives have broadened. But more choices lead to increased confusion. So it’s best to learn about the pros and cons of all the available options and make a decision that suits your requirements.

While you may consider trolling the internet to arrive at a persuasive decision, we have attempted to ease the process for you.  Below is a list of the positives and negatives of using a forex travel card versus relying on cash while traveling abroad.

Industry experts vouch for the safety and cost-effectiveness of a multi-currency forex card. Let’s find out how true their claim is.

  • Exchange rates: Forex cards offer you a better foreign exchange rate as compared to cash. This means, for the same amount you can buy more foreign currency in a pre-paid travel card than converting hard cash into foreign currency.

Advantage: Forex Card

  • Safety: While travel cards are secured through a chip and pin technology, the safety of your cash completely depends upon how well you handle it. Travel cards are not directly linked to any bank account. It works like a top up card, so you do not have to fear being robbed of all your savings. However, carrying excess cash in hand makes you an easy target for thieves and fraudsters.

Advantage: Forex card

  • Universal acceptance: Though forex cards are globally accepted, there may be situations when cash comes in handy. If you wish to visit a local marketplace or want to enjoy some street food, small local vendors are less likely to have card machines. This is when having some cash in hand will work in your favor.

Advantage: Cash

  • Damage control: In case of loss or theft of your prepaid travel card, you can immediately block the card and request for a replacement card to avoid any crises in a foreign land. But with cash, there is no damage control. It’s just gone if it’s gone. 

Advantage: Forex card

  • Additional fees: Depending on where you buy forex card, you can be charged an activation fee, overseas ATM usage charges, inactivity fee, etc.  Thus, you should thoroughly understand the policies before buying a forex card from a specific institution. With cash, there is no activity or inactivity surcharge.

Advantage: Cash

  • Multi-currency transactions: If you’ve set out to travel to multiple destinations, loading your pocket with several foreign currencies is certainly a hassle. However, a multi-currency forex card gives you the option of loading it with multiple currencies to use it on the go. Whenever you travel abroad and initiate a transaction, your forex card will automatically detect the country and deduct the money from the local currency wallet on your card.  

Advantage: Forex card

To sum up, pre-paid travel cards are definitely a travel-friendly tool for carrying forex. Though most of your overseas transactions will be cashless in nature, it’s advisable to carry a mix of both, keeping more funds stored in your forex card and minimum cash in hand to meet the petty needs.

To know more about the features of a forex travel card, please reach out to our representatives on +91 7303401234. 

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