You deserve a break from work and overcrowded cities. You can visit some of the most secluded places in the world with your loved ones. Before leaving India on your adventure, there are a few things you need to be mindful of. For instance, you will need to get your passport, visa, air tickets, hotel bookings, etc. Besides that, you will also need to have a concrete plan to carry foreign currency.
As you will need to make payments in foreign currency, there are several ways you can choose to manage your money abroad. You can get a multi-currency forex card, debit card, credit card, traveler’s cheque, or liquid cash. Whichever you choose, make sure to avail of the best international currency exchange rates.
Keep reading to understand how each option can benefit you on your travels abroad:
Multi-currency forex card
Multi-currency forex cards are gaining tremendous popularity among travelers. You can load multiple foreign currencies at once at affordable foreign currency exchange rates on your forex card. Since the foreign exchange rates are predetermined while loading your forex card, you are protected against fluctuating international currency exchange rates.
It allows you to make international bookings and payments at hotels, restaurants, stores, airlines, cinemas, clubs, and petrol pumps at no extra charges. It is not only used for swiping at PoS terminals, you can also withdraw cash from any international ATM without worrying about currency conversion charges. However, you will have to pay a flat withdrawal fee on each transaction you make with your forex card.
Prepaid debit card
It is another option to carry foreign currency abroad. You are allowed to carry foreign currency equivalent of USD 250,000/- in a financial year. However, you can up forex equivalent to USD 3000/- in a single visit in currency note. The remaining amount will have to be carried through a forex card. It is worth noting that the foreign currency exchange rates are higher compared to a forex card.
Yes, you can also use your credit card to make foreign transactions at merchant outlets, ATMs, or online. The process of caring for a transaction overseas is similar to that of India. It is worth noting that the purchase transactions and withdrawals through your credit card are subject to currency conversion fees.
It is an old way of carrying foreign currency abroad. Compared to debit and credit cards, it is an expensive deal. Surprisingly, some people still use traveler’s cheques on their travels abroad. They are most useful in places where there are no ATMs or where cards are not accepted. Keep in mind that a traveler’s cheque is subject to international currency exchange rate fluctuations. Also, you cannot spend over the set limit. It does not give more spending flexibility.