FOREX CARD / DEBIT CARD / CASH: WHICH ONE SHOULD YOU CHOOSE FOR YOUR NEXT TRIP ABROAD?

 

  Should I use my credit card or debit card? Forex card or cash? It is a question that hovers around before you leave for your next trip abroad. It’s always better to do a little homework on how to get the most from your money overseas. The most helpful thing to do is research the internet, compare rates and charges, features and advantages of all the products on offer for your abroad trip.

Traveler’s cheques were the preferable options in the past while traveling abroad. Since the advent of forex cards and the growing popularity of debit cards and credit cards, TC’s are no longer a preferable option. The most important thing is to know the different options. You must know your options inside out and the pros and cons of everything on the proposal.

So, the question is, which is the best option for you? And most importantly, look for how you can avoid paying exorbitant exchange rates and charges.

We have done a comprehensive roundup of all the options available to you when traveling abroad in this article.

FOREX CARDS 

Forex cards are the most preferable and popular way for travelers to carry currency nowadays. It is globally accepted and almost as good as cash. And, when needed, you can also withdraw local currency from an ATM. With this type of card, you can spend money for your travels across the world without paying any cross-currency charges. A forex card has many advantages which are worth mentioning: 

ADVANTAGES 

● The safest form of currency carrying nowadays. Prepaid travel cards have configurable spending limits, are pin protected, and are replaceable in case the card is lost or stolen.

● Free insurance cover 

● Available at better rates than currency notes and traveler’s cheque

● Convenient to use – 24*7 customer service, can be reloaded anytime.

There are no such mentioned disadvantages. Forex cards are, in a way, the best way to carry foreign currencies when traveling overseas. It’s always good to research the features and benefits of different forex card providers. UNIMONI FINANCIAL SERVICES can answer any of your queries or assist with this. Also, always buy your forex card well in advance because it needs 24 to 72 working hours for a card to be loaded with currency.

CREDIT CARDS OR DEBIT CARDS

It’s better to keep credit cards and debits cards as a backup option if you happen to run out of cash or have exhausted your forex card and cannot reload it. Credit cards and debit cards are globally accepted and are convenient ways to pay, but your payments and withdrawals will attract conversion charges.

Credit cards are best for booking Airline tickets, Hotel bills, Car rentals, Restaurant meals, while you can best use debit cards for withdrawing cash in local currency.

But, both have their advantages and disadvantages when opting for it as a primary option for traveling abroad. Let’s look into it :

CREDIT CARD – ADVANTAGES AND DISADVANTAGES 

ADVANTAGES 

● The currency exchange rates are typically lower than what you will pay for exchanging currency at an airport or a money changer.

● Some credit cards do not impose any foreign transaction fees at all.

● You get an interbank exchange rate whenever you use your credit card abroad for any purchase.

DISADVANTAGES 

● Withdrawals using credit cards is an expensive proposition as the credit card issuer will impose a cash advance fee, and the ATM owner will impose withdrawing charges.

● You should quickly pay off the due balance as soon as you return from your trip. If you fail to pay it, you will have to pay extra like late fees and accumulating interest.

● There is a chance for the card not being accepted at restaurants, stores, and even hotels because of the lack of a POS machine.

DEBIT CARD – ADVANTAGES AND DISADVANTAGES 

ADVANTAGES 

● As there are ATMs worldwide, this is the most convenient way of getting local currency but not the cheapest.

● Just like credit cards, you will get the same great interbank exchange rate when you make a purchase or a cash withdrawal with your debit card.

DISADVANTAGES

● Debit cards are not protected against theft or loss like a forex card or your credit card.

● If such incidents happen, inform your bank immediately because failure to report may lead to extra charges.

● Any cash withdrawal or purchase will bring a conversion fee, foreign transaction charge, and foreign ATM withdrawal fees with a debit card.

CASH

It’s the most liquid and convenient way to pay; at the same time, cash comes with many problems. If there is a plan to travel to multiple countries, then you must carry various currencies. If you have a lot of cash, you must be extra careful with it. There are chances that your money gets stolen. So, carry some cash for convenience and emergencies, but don’t carry all the forex you need in cash. Cash is of only best use till the first few hours of your trip until you find an ATM.

ADVANTAGES 

● It’s always great to carry some cash in hand before you leave your home country for your immediate expenses. Because you should not be left stranded at the airport in case the ATM is not working.

DISADVANTAGES 

● Exchanging the Indian rupees to cash would not get you the best exchange rates.

● It’s never safe to carry large amounts of money because of apparent reasons like robbery, kidnapping, etc.

Foreign trips entail a lot of preparation and planning, even if embarking on holidays or visiting relatives. Traveling with cash/ credit or debit cards might seem appealing at first glance. But this outdated medium of carrying money can lead to inconvenience in addition to taking a toll on your pocket.

Forex cards have emerged as the safest payment method in the 21st century. Forex cards can work wonders for fulfilling your monetary needs abroad when credit/ debit cards only guarantee up to 6.5% savings. Whether it is paying at a local store or withdrawals from an ATM, the functionalities of a forex card will never disappoint you.

Even smartphone applications can give you complete control over your forex card in one place. So, if safety and convenience are your topmost priorities, make sure you invest in a prepaid forex card to handle your expenses abroad without any hassles. UNIMONI FINANCIAL SERVICES make your abroad trips easier and convenient, assisting you with all your queries related to forex cards. Our services will be a one-stop solution meeting all your requirements related to forex cards. For more details, visit our website and arrange a demo call with us.