Do you know the forex card charges and fees?

forex card charges and fees
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What is the difference between a prepaid forex card and a regular one?

Do you know the forex card charges? A prepaid card can be loaded with various currencies. If you’re only visiting one country, though, it’s best only to load one money. The maximum amount can be loaded for the purposes specified by the Liberalised Remittance Scheme. The (LRS) established by RBI is equivalent to $2.5 lakh per annum per individual.

Where can I buy it?

A prepaid forex card can be obtained via a bank or an authorised forex dealer (also known as money changers). You don’t even need to have an account with the bank to get the card. Please fill out the application form with personal information, such as the amount of foreign money to be exchanged, and submit a self-attested photocopy of one’s passport. Some may also require a visa copy confirming the required documents. There are various options to choose from, so pick one that best suits your needs.

Charges to be conscious of

When using a prepaid forex card, you must be aware of the numerous charges, just as you must be mindful of anything else. You won’t have to worry about conversion fees once the card has been loaded with FX. Although there is no charge for swiping the card at a merchant outlet, you will have to pay a fee for transactions like balance inquiries.

Here are a few examples of usage-based fees:

Cash withdrawal fee: This is the fee you pay when using your forex card to withdraw money from an ATM.

Balance inquiry fee –Checking your balance at a financial institution.

Free international SMS alerts –Receive SMS warnings free of charge when onboard.

Without payments, card replacement (domestic) –You can get a free card replacement within India.

Free International card replacement –If you require a replacement card when travelling overseas.

On getting statements, request reports free of charge.- Customers can access it

online/app free of cost

Transaction slip retrieval fee –Fee for retrieving a transaction slip from an ATM.

Cross currency markup charge-When the transaction currency differs from the currency loaded on the card (for example, if the card is loaded with dollars and you need to make a transaction in euros), you may be charged a ‘cross-currency markup’ of 3-3.5 per cent. Some banks may provide ‘Zero Cross Currency Conversion Charges’. which allow you to use your card for cash withdrawals and merchant payments in any currency.

Inactivity Fees: An idle period on a card is when there has been no debit or credit on the card for more than 6 months. Some banks may impose this.

 

There are a few things to keep in mind when buying forex cards and forex card charges.

  • Daily limit: There could be a daily limit on how much money can be spent, such as $200-300 per day.
  • Activation: Find out how to activate the card from the issuer and how to re-generate the card PIN if you forget it while travelling.

Have the helpline number on hand 24 hours a day, 7 days a week.

Consider the following points:

  • International card fraud is a well-known fact.: According to Tandon, the card should be swiped in front of you at all times. “The largest threat is card cloning, and the card can be compromised in terms of usage at times.”
  • Swiping:  Because the card is loaded with foreign money, do not swipe it at a location where the transaction value is in Indian rupees. Because your card is loaded with foreign currency, you will pay a conversion charge when you swipe your card, and the transaction is conducted in rupees.

When prompted at ATMs or merchant outlets, use the credit card option because a different option for a forex card will not be available. When you return, have your card balance encashed because carrying large quantities of foreign currency is forbidden.

The balance on a forex card should not exceed the limit equivalent of $2,000 set by the RBI.

  • Coverage provided by insurance

Different sorts of insurance coverage may be available on these forex cards. Confirm with the issuer whether the card includes coverage for protection against card abuse or counterfeiting, personal accident insurance, and loss of checked luggage coverage. Some cards provide a range for ATM robbery and assault and hospital expenses.

What you ought to do

When travelling abroad, it is recommended that you do not carry all of your forexes in one manner; bring a little quantity of hard cash and utilise your forex card for the rest. “One should make a decision based on their intended use. The recommended cash-to-travel-card split is 20:80.

Because the Indian rupee is not generally recognised outside of India, you should be cautious about how you carry your foreign currency when you leave the country. For example, don’t swipe your credit card too much because you’ll be charged a conversion cost and the processing fee. It is far more expensive to exchange money at an airport and withdraw cash from ATM.

Costs will be incurred regardless of your choice, but researching your options ahead of time will keep them under control and ensure that your vacation is not ruined.

 

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