What is the difference between forex card and credit card

Forex Card

Forex cards are a particular type of card designed for traveling purposes. While traveling outside  India, a forex card can save you from many unnecessary charges. Therefore, a forex card can be the best card option while traveling outside the country.  

This blog will discuss how the forex card is different from a credit card and what you should apply for?  So let’s get started.  

Foreign exchange card or forex card:  

A foreign exchange card is the best card option for traveling outside India. The card has an option for  you to convert your home currency into one or multiple currencies. Additionally, you don’t have to pay  mark-up charges while using Forex cards. You are also saved from currency fluctuation risks or  transaction fees while making transactions abroad.  

Benefits of a forex card over a credit card

Save medium of carrying cash:  

On traveling abroad, there are also chances of losing your card to theft. Holding cash in hand can be  inconvenient and risky. Thus, forex cards can save you from the risk of theft. Like a credit card, you can  immediately block your card if you lose the card.  

Lower cash ATM withdrawal charges:  

A credit or debit card can be a costly method of withdrawing cash outside India. Since a forex card is  specifically for travel purposes, you have to pay a lower per-transaction fee than a credit card. Forex  card charges you with withdrawal charges per transaction; however, the charges are much lower than  credit card charges.  

Protection against forex rate risk:  

You are also saved against foreign currency rate fluctuations in a forex card. We know that you can  exchange the local currency for 20 to 22 other foreign currencies. Since you can preload the currencies  on the card and the amount gets locked up. In this process, you are immune to any foreign rate  fluctuations.  

However, in the case of a credit card, you don’t have any such facility for currency conversion. Thus you  are exposed to rate fluctuation risk. 

Optimal for multi-country tours and frequent travellers:  

Forex cards are a convenient and best card option for frequent travelers. The card has an option for  conversion of domestic currency into multiple currencies. You can use this option to travel to various  countries without worrying about cash. Travelers can save themselves from foreign currency  fluctuations, mark up rates and other charges. It also insures you against the risk of theft since you can  get it insured.  

Insurance coverage:  

As discussed in the previous point, you are insured against loss by theft in a forex card. Thus, many  banks that offer forex cards provide insurance coverage. If your card gets lost, you can still recover your  lost amount.  

Summing up:  

A forex card is a good option for frequent travelers. After reading this blog, you know that the forex  card is the best option like other best credit cards in India for travelers. If you are planning to travel abroad, you can apply for a forex  card after checking and comparing all its features.

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