Skip to main content

Pros and Cons of Forex Card Vs Debit Card Vs Cash


You have a foreign trip coming up and are unsure how to carry your money. Should you buy foreign currency notes, get a worldwide travel money card or head to a foreign cash exchange place once you land in your destination? How about a debit card Read on for more eon the pros and cons of each of these options.
Worldwide travel money card or a forex card: This is one of the best options when you are travelling abroad. All you have to do is get a card from your bank or any bank that offers one. Most reputed banks in India offer these cards. The next step is to add funds to this card, making it a prepaid travel money card. It is secure and a good alternative to carrying cash, which is unsafe. Also, the pro of carrying a forex card is that you have a specific budget and you know exactly where your money/spending is. With cash, it becomes difficult to track spendings and you will have to match it with bills and receipts. With a forex card, you can also opt for travel insurance. You get other benefits like discounts at certain merchant outlets etc. The best advantage is that there is no transaction fee with a prepaid forex card. Foreign exchange rate is frozen when it is being loaded to the card, and there are no fluctuations at a later stage. There are no disadvantages when comes to think of a forex card. You can also get a multi currency forex card from your bank.
Forex card vs debit card: A debit card would attract merchant service fee, and is also subject to foreign exchange rate fluctuations. The highest rate of foreign exchange for a specific day will be applied on a transaction. On the positive side, a debit card can be used anywhere and convenient, thanks to the presence of ATMs the world over. However, it is not as secure as a forex card because it is not protected against loss/theft. You would need to inform the bank immediately. If you are planning to use your debit card, you would need to inform the bank ahead of your travel or sudden international activity could lead the bank to freeze your card.
Cash: Buy foreign currency notes from a foreign cash exchange place and use it for the first few hours after you land — maybe till you find an ATM! Also, cash is a good option for small or miscellaneous payments, possibly a roadside vendor etc.
If you want to know more about Pros and Cons of Forex Card Vs Debit Card Vs Cash, visit source blog
Source: https://yourexpertguide.wordpress.com/2018/08/16/know-pros-and-cons-of-forex-card-vs-debit-card-vs-cash/

Labels:

Comments

Post a Comment

Popular posts from this blog

Calculation of Tax on Foreign Exchange Conversion

The implementation of GST (Goods And Service Tax) on July 1, 2017 has revised the tax structure of transactions on several goods and services, including forex services in India. The revised rates for forex services come as a welcome move as the taxes often lie between 0.05% to 0.18% of the total forex transaction. When partaking in any kind of foreign exchange services like currency exchange, money transfer , or buying a forex card , one is only expected to pay the GST; and as per the directive from the Government of India, one is expected to pay 18% on the forex transactions that comes under the taxable value bracket. So what is “taxable value”? Taxable value is the set portion of the transaction upon which tax is levied. This reduces the amount of tax one has to pay on forex services greatly. Currently the government has set up 3 slabs of taxable value, based on the amounts of transactions. Slab 1: Up To Rs. 1 Lakh: On forex transactions up to Rs. 1 lakh,
Post a Comment
Read more

Best Way to Carry Money Overseas

Finding foreign currency or money exchange locations is simple and easy but choosing the right method could save you a ton of cash. It is no surprise to learn that there are many hidden fees when exchanging money and what used to be a convenient way to get cash is no longer widely used and accepted. Here are the best currency exchange options for travelers. 1. Credit cards: Credit cards are a must these days either to book a hotel room or make large purchases. Whenever you make a purchase in a foreign currency credit card providers charge more than ATMs by adding 2.5 – 3% on top of the spot rate.  If you have a travel rewards credit card you get extra benefits that can save you a ton of money. Most of these cards include travel medical insurance and lost/delayed baggage insurance. With any insurance policy, read the T&C print to find out exactly what you’re covered for. Or use a multi-currency forex card for all your payment needs. Once the foreign excha
Post a Comment
Read more

What Are The Best Travel Money Options?

So, you are heading on a foreign trip and wondering what your travel money options are. Should you get a forex card , an ICICI bank travel card or just get enough foreign cash via currency exchange ? Should you opt for debit/credit cards or travellers’ cheques? So many questions keep going round in your head, and the whole thing can be quite daunting right? Not really, if you do some homework. Ideally, you should keep some spare cash but also get one of the forex cards for the bigger expenses. How about a HDFC forex card or an Axis bank forex card? You could pick one of them. A combination of various options is a good way to carry your money. First, let’s look at forex cards. Foreign exchange cards You can use your card to buy stuff at a mall or a market, spend on tickets, pay for your food at restaurants or order food/buy online. You can get in touch with your bank in your home country and load currency on to the card; this could be any of th
Post a Comment
Read more