While cash and international debit/credit cards are the traditional methods of travelling abroad, forex and/or prepaid travel cards help in controlling expenses.
Using money while travelling abroad is a big task. There are different ways that you can handle the money during international travel. While cash and international debit/credit cards are the traditional methods of spending, forex and/or prepaid travel cards will help in controlling expenses during your foreign trips.
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Here's a comparison of different ways of handling expenses while travelling abroad:
A forex card is a prepaid travel card in which one can load with foreign currency of choice. The card works like a debit-cum-ATM card, letting the traveller use the card to withdraw cash from the local ATM and swipe the card when required. These cards are offered by banks such as HDFC Bank, ICICI Bank, among others. However, banks charge a certain amount for issuing the card. It also charges ATM withdrawal free and re-load fee, among other charges. The charges vary from bank to bank.
Travelling with foreign currency has always been a traditional method. One can convert their domestic currency by approaching a foreign exchange portal service. However, it may not always be possible to find a foreign exchange portal. Also, sometimes carrying liquid money can be at the risk of theft.
International debit/credit cards
The international debit/credit lets one access the funds that are already existing in their bank’s savings account. The traveller will have to inform their bank about their travel plans and accordingly, the bank will inform the charges for using it in a foreign country. Although the method is convenient, while swiping, there are chances that the card may not be accepted by all the lenders when making a payment.
Prepaid travel card without charges
Prepaid travel cards are usually those travel cards launched by Fintech companies. These companies tie up with banks and finance companies such as Visa or Mastercard, to launch their own prepaid travel cards. These cards usually have no charges, at all. This is because these cards are usually rupee-denominated, unlike a forex card which is foreign currency-denominated. Some companies also offer these cards to be linked to one's e-wallet. One such example is the prepaid travel card launched by fintech startup NiYo Global. Users can link the card with DCB Bank.
First Published: May 14, 2019 2:35 PM IST