Forex Card Vs Cash Vs Debit Card-Pros and Cons

by Richa Sharma content marketer

You have a foreign trip coming up and are unsure how to carry your money. Should you buy foreign currency notes, get a worldwide travel money card or head to a foreign cash exchange place once you land in your destination? How about a debit card Read on for more eon the pros and cons of each of these options.

Worldwide travel money card or a forex card: This is one of the best options when you are travelling abroad. All you have to do is get a card from your bank or any bank that offers one. Most reputed banks in India offer these cards. The next step is to add funds to this card, making it a prepaid travel money card. It is secure and a good alternative to carrying cash, which is unsafe. Also, the pro of carrying a forex card is that you have a specific budget and you know exactly where your money/spending is. With cash, it becomes difficult to track spendings and you will have to match it with bills and receipts. With a forex card, you can also opt for travel insurance. You get other benefits like discounts at certain merchant outlets etc. The best advantage is that there is no transaction fee with a prepaid forex card. Foreign exchange rate is frozen when it is being loaded to the card, and there are no fluctuations at a later stage. There are no disadvantages when comes to think of a forex card. You can also get a multi currency forex card from your bank.

Forex card vs debit card: A debit card would attract merchant service fee, and is also subject to foreign exchange rate fluctuations. The highest rate of foreign exchange for a specific day will be applied on a transaction. On the positive side, a debit card can be used anywhere and convenient, thanks to the presence of ATMs the world over. However, it is not as secure as a forex card because it is not protected against loss/theft. You would need to inform the bank immediately. If you are planning to use your debit card, you would need to inform the bank ahead of your travel or sudden international activity could lead the bank to freeze your card.

Cash: Buy foreign currency notes from a foreign cash exchange place and use it for the first few hours after you land — maybe till you find an ATM! Also, cash is a good option for small or miscellaneous payments, possibly a roadside vendor etc.

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Source: https://yourexpertguide.wordpress.com/2018/08/16/know-pros-and-cons-of-forex-card-vs-debit-card-vs-cash/