Forex card for international travel: Who can apply, documents required, charges

Posted on: Dec 28, 2022 | | Written by:

Forex card for international travel: Who can apply, documents required, charges

Published on December 27, 2022. EST READ TIME: 3 minutes

Forex card for international travel – Travel Insurance

Have you got your trip sorted to Europe and also have travel insurance for Schengen visa do you think you are all set? Wait, there is something you are missing. Read on to know what it is. Post-pandemic, the international travel restrictions have eased out now, and everyone is busy planning their international trips. When planning a trip, ensure you plan everything properly to enjoy a stress-free vacation. Also, never forget international travel insurance with good coverage to ensure there are no financial issues later if anything were to happen. There is one more thing that is needed when travelling out of the country, and that is foreign currency.

Each country has a currency, and all expenses there will be made in this. Credit cards are an option, but there might be places that do not accept cards, and a fee is charged by the bank every time you use your card. The second option is to carry foreign currency. Again this has two issues, firstly, how much to carry and secondly, to carry it all the time when roaming around, especially when travelling. Your travel insurance coverage might cover cash loss and compensate with emergency cash, but ultimately it is not safe.

The best solution to these is a forex card. In this post, you will learn all the details you need to know about a forex card.

What is a forex card?

As mentioned above, one of the most convenient ways to carry foreign currency is a forex card. For those who do not know, a forex card is like a debit card and is preloaded with the amount you wish to carry. You can use this card as a debit card or use it at an ATM to withdraw foreign currency. These cards are designed specifically for spending money abroad. This enables you to not carry cash while travelling and can be used anywhere in your holiday destination.

Features and benefits of a forex card

There are many benefits of carrying a forex card. Let us some of them:

1. It is a cheap way of carrying foreign currency

2. It is also cost-effective to make payments using a forex card as compared to debit and credit cards due to the fees

3. It is safer to carry a card as compared to cash

4. The card can be used for several trips

5. You get special offers with the forex card

6. Some forex cards also offer international travel insurance.

How does a forex card work?

For your bank to issue you a forex card, you need to transfer funds for the amount you wish to load your card with. Once the bank receives these funds, they issue a forex card. When you reach your destination, this card works in the same way as a debit card. Any place in the country which has an electronic terminal to take credit or debit cards will accept the card. They swipe it equivalent to the amount you need to pay, and this amount gets deducted from the card's balance. The card can also be used to withdraw cash in the currency of your destination from any ATM.

Eligibility to buy a forex card

Any Indian national who is KYC compliant can get a forex card issued from the bank. A person who is not a citizen of the country, cannot get the same. Children above the age of 12 years can also get a card, but only after the application has been signed by the parents or the guardian.

How to apply for a forex card?

The process to apply for a forex card is very simple. You need to fill out a form either online or offline and need to attach some documents along with it. The bank processes the application on the basis of these documents and issues the forex card.

Documents required to get a forex card

1. A copy of the passport duly attested

2. Copy of the ticket issued by the airline

3. Copy of the visa

4. Any person who is not a customer of the bank will also need to do the mandatory KYC

5. For customers, just need to mention their PAN number

Charges of a forex card

Each bank charges a fee for issuing the forex card. It is advisable to check these before taking the card. They can also levy a charge on each transaction, and this again must be confirmed before applying for the card. Similarly, the other charges can be on topping up the card, enquiry for balance, ATM withdrawal, convenience charges, etc.

Fund limit on a forex card

The RBI has a Liberalised Remittance Scheme under which, in one financial year, funds up to $250,000 can be loaded onto a card. This limit is for any foreign transaction, and thus, if you have other transactions, you should be careful not to exceed this limit.

Things to keep in mind when using a forex card

Some of the things that must be kept in mind are:

1. On one forex card, you have the option to load different currencies.

2. Some of the banks also offer international travel insurance with the forex card, so check if you can avail the same.

3. If your card gets stolen or lost, contact your bank immediately. Also, check if it is covered by your travel insurance cover.

4. You can check your balance through phone banking and net banking.

FAQs

1. Can a forex card be used for online transactions?

Yes, a forex card can be used like you use a debit or a credit card. Online transactions abroad will not attract a cross-currency charge.

2. Can I use the forex card in any country?

The forex card cannot be used in India, Nepal, and Bhutan. You should also check with your bank before getting the card issued.

3. What is the validity of the card?

A forex card is valid for 5 years. The expiry date must be mentioned on the card and, thus, should be checked.

Conclusion

To enjoy a stress-free vacation abroad, you must have international travel insurance and a forex card for your expenses. Either you have travel insurance for Schengen visa or one for the UK, you will need to spend in both countries, and thus, carrying a forex card loaded with both Pounds and Euros will make travelling more convenient. The currency is needed to spend in the country, and in case of any mishap, you need travel insurance cover. Both have their importance, and thus, it is essential to have both. Forex cards are extremely convenient and easy to carry and make spending easier. So get your forex card from your bank and enjoy your vacation in peace.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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