Forex cards, a popular choice among international travellers, are lauded for their convenience and security. However, like all financial products, they come with their own set of disadvantages. Let's delve into the lesser-known side of forex cards.
Why use a forex card?
A forex card, also known as a prepaid travel card, is a convenient way to carry money while travelling abroad. It is a pre-loaded card that allows you to access money in the required regional currency.
Forex cards offer multiple currencies in a single card, locking in exchange rates at the time of loading, and providing a safer alternative to carrying cash. They are accepted worldwide and offer insurance against card loss or theft.
This card reduces the need to carry physical currency, providing protection against fluctuating exchange rates. It works just like a credit or debit card and can be used at ATMs to withdraw cash in the local currency or at merchant outlets abroad.
Delving into the limitations and pitfalls of forex cards
There are many disadvantages of forex cards, including:
- Limited currency options: Not all currencies are available on forex cards. This can be a disadvantage if you're travelling to less popular destinations.
- Reload charges: While reloading the card is convenient, it often comes with a fee.
- Inactivity fees: If the card is not used for a certain period, an inactivity fee may be charged.
- Limited merchant acceptance: Some merchants may not accept forex cards, forcing you to carry some amount of cash.
- Dynamic currency conversion charges: If a transaction is made in a currency not loaded on the card, it will be converted using the card issuer's rate, which may not be favourable.
- Card replacement fee: If the card is lost or stolen, a replacement fee is charged.
- Limited customer support: Getting customer support in a foreign country can be challenging.
Bajaj Finserv RBL Bank credit card
Instead of a forex card, you could consider opting for a credit card with low forex markup rates. The Bajaj Finserv RBL Bank Credit Card offers a competitive forex markup rate of 3.50%, making it a viable alternative to forex cards. It also provides a host of other benefits, including:
- Rewards points on every transaction
- Easy EMI conversion for expenditures above Rs. 2,500
- Interest-free cash withdrawals from any ATM across India
- Emergency cash advance, allowing you to transform your available cash limit into a personal loan for 3 months at a nominal interest rate
- Annual fee waiver when you meet the minimum spending requirement on your card variant
- Discounts and 1+1 offers on tickets booked via BookMyShow
- Free airport lounge access
- Fuel surcharge waivers across refuelling stations in India
While forex cards have their advantages, they also come with certain limitations. The Bajaj Finserv RBL Bank Credit Card, with its competitive forex markup rate and additional benefits, offers a compelling alternative. So, the next time you plan an international trip, consider your options carefully and choose the one that best suits your needs.
