Prepaid forex cards are a type of foreign currency, similar to foreign currency notes or travellers cheques.
Forex card can be used to make payments abroad. These cards are loaded with a currency of the country you are travelling.
ICICI Bank Travel Card, HDFC Bank's ForexPlus Card and Axis Bank Forex card are few which offers Forex cards.
1) Forex card can be loaded with 8 currencies, and can be sued to withdraw money from the ATM.
2) Usually, Forex card is availabe in AUD / AED / CAD/ CHF/ Euro / GBP / JPY / SGD / SEK and US Dollars currencies.
3) Some cards such as HDFC Forex card provide protection against exchange rate fluctuation using the value loaded on these cards in future.
4) Forex card are accepted at all Visa/ Mastercard Merchant outlets and 24 hour VISA/ Mastercard ATMs worldwide.
5) Some forex cards cover insurance such as misuse of lost or stolen card or personal accident cover, baggage cover.
6) Forex card charges fees for issuance of the card, cash withdrawal, reload fee, PIN reissue.
Benefits of using prepaid card while travelling aboard
Forex cards issued in India are widely excepted. They are safe to carry when compared to currency.
They can be blocked easily by phone banking and net banking as it is done for credit card and debit card.
As it is a prepaid card, it protects the customer from exchange rate volatility. As the rate will be fixed on the date when the amount is loaded.
What are the Documents needed?
- Fill Forex card Application Form
- Form A2 (Available with the bank)
- A photocopy of your Passport
- Additional document for non-customer
- Visa Copy or Ticket Copy
How much amount can one carry?
The amount depends on the purpose of the visit. For holidays, personal visits one is eligible for USD $10,000 per financial year and for business travel it is USD $25,000 per trip.
For employment, studying abroad and medical treatment one is eligible for USD $100,000 per year.