A foreign exchange card is very beneficial and can be used like a debit/credit card while travelling overseas thereby eliminating the risk of carrying cash. Carrying excess cash to overseas has twin risks of likely theft and counterfeit issue, which can land people in trouble. The increase in corporate travel to international destinations and rise in currency fluctuations have given a boost to currency forex cards. The usage of these cards by the corporate segment has been growing at over 25 per cent on a year-on-year basis.

Forex card works like a regular ATM debit card. The only difference is that the debit card has money in local currency while the forex card has money in foreign currency. People can use their Forex Travel Card to withdraw foreign cash in an ATM and also pay for any shopping in overseas. It is accepted wherever MasterCard and Visa are accepted.

There are various players in Indian market who provide foreign exchange card services. They include authorised full-fledged money changers, banks, travel agents, and various international service providers.

While most service providers have separate cards for the different currencies, some service providers offer multicurrency cards offering 5-6 currencies on a single card. Multicurrency card enables customers to manage transactions across various currencies in one single card and helps them to lock in the currency exchange rates.

Benefits of Forex Travel Card

Forex Card for travellers comes with several benefits:

• Safe and secure: The card has an embedded chip which stores encrypted and confidential information offering a great level of security against counterfeiting
• Worldwide acceptance: These cards work like regular ATM cards and can be used across the world at ATM machines and merchant establishments which are on the Visa/MasterCard network.
• Available in multiple currencies: These cards are available in several currencies like Australian Dollar, AED (Dirhams), Canadian Dollar, Euro, Japanese Yen, Singapore Dollar, Sterling Pound, Swiss Franc, and US Dollar Currencies.
• Standby Card: Travellers are provided with an additional back up card along with the welcome kit. In case people lose their primary card, they have the option of using secondary card already provided. The primary card is hot-listed and the secondary card is activated on informing the card issuer and the balance gets transferred to it.
• Reloading: These cards are reloadable at anytime and anywhere. People can reload the card as many times they want within the validity period.
• E-commerce transactions: Travellers are also provided with user id and password, which enables them to monitor and use their cards online. The Forex Travel Card can be used for making online purchases and various transactions such as bill payments, account statement, booking air tickets, etc.
• Insurance cover: Travellers are provided with proper insurance coverage on the forex cards which includes, lost card liability insurance, etc.
• Immunity from currency fluctuations: People can avoid foreign exchange fluctuations with the help of using these cards.

Documents needed to apply for a Forex Card

Travellers will require the following documents to buy a travel currency card:

• Passport,
• Visa,
• Copy of Air Ticket,
• PAN Card,
• A2 Form