Are forex cards indeed a smarter choice than cash?
Carrying cash might be a convenient option while travelling, but managing it could prove to be challenging. However, forex cards provide a safer and more convenient way to handle expenses abroad.
For those looking for a reliable foreign currency card, Unipay Forex offers forex card benefits with seamless services, competitive exchange rates, and a stress-free travel experience.
In this blog we’ve discussed why forex cards are a better choice for international travel.
What Is a Forex Card? Where and How Can You Apply?
A forex card is a foreign exchange card designed for international travel. It functions like a debit or credit card but allows you to load money in foreign currency. This foreign currency card is widely accepted at ATMs, hotels, restaurants, and retail outlets across the world.
Types of Forex Cards
- Single-Currency Forex Cards – Load one currency and use it in the respective country.
- Multi-Currency Forex Cards – Load multiple currencies in one card for trips across different countries.
Where to Get a Forex Card?
- Banks & Financial Institutions: Most banks offer forex cards, even if you don’t hold an account with them.
- Online Platforms: Providers like Unipay Forex allow online applications through their website, making the process simple.
How to Apply for a Forex Card?
The application process is straightforward:
- Apply Online or In-Person: Fill out the application form and submit necessary documents (passport, visa, etc.).
- Approval & Card Issuance: Once approved, you receive your foreign exchange card along with a PIN.
- Change the PIN: For added security, change your PIN immediately after receiving the card.
- Load Funds: Use net banking or mobile apps to load money in the required currency.
Forex Cards vs. Cash: Key Differences
Both forex cards and cash have their pros and cons, but forex cards offer clear advantages in terms of security, cost, and ease of use.
| Feature | Cash | Forex Card |
| Security | High risk of loss or theft | PIN-protected, can be blocked if lost |
| Convenience | Requires carrying different currencies | A single foreign currency card works worldwide |
| Exchange Rates | Fluctuating rates | Locked-in rates at the time of loading |
| Fees & Charges | Hidden markups on exchange rates | Minimal ATM withdrawal fees, often no issuance or reload charges |
| Acceptance | Universal but inconvenient for large payments | Accepted at most international merchants and ATMs |
| Expense Tracking | Difficult to track | Online apps provide real-time tracking |
| Multi-Currency Support | No | Yes, load multiple currencies |
Key Benefits of Using Forex Cards Over Cash
1. Worldwide Acceptance
Forex cards are widely accepted across hotels, restaurants, and shopping centres worldwide. Unlike cash, which might be refused in some places, a forex card ensures hassle-free transactions anywhere.
2. Superior Security
Cash, once lost or stolen, is gone forever. A forex card, however, is PIN-protected and can be blocked instantly if misplaced. Many banks also offer complimentary insurance against theft or misuse.
3. Convenient and Preloaded
Instead of carrying wads of cash, simply preload your forex card before your trip. This makes it easier to pay for expenses and withdraw money without worrying about exchange rates or safety risks.
4. Better Exchange Rates
Unlike cash, where rates fluctuate, forex cards lock in the exchange rate at the time of loading. Providers like Unipay Forex offer competitive rates, helping you avoid hidden markups and extra charges.
5. Easy Reloading
Running low on funds? No problem! Forex cards can be reloaded anytime online, even while you’re abroad. This eliminates the need to hunt for currency exchange counters.
6. Supports Multiple Currencies
If you’re visiting multiple countries, carrying different currencies can be inconvenient. Multi-currency forex cards allow you to load and switch between various currencies with ease.
7. Real-Time Expense Tracking
Many forex cards come with mobile apps that let you monitor transactions, check balances, and receive alerts, ensuring better financial management while travelling.
8. Contactless Payments
Many forex cards are contactless-enabled, allowing you to tap and pay for small transactions, speeding up payments and reducing the risk of handling cash.
How to Use a Forex Card Effectively?
To get the most out of your forex card, follow these tips:
- Activate and Load Before Travel
Make sure your card is activated before departure and load sufficient funds based on your travel budget.
- Set a Strong PIN
Use a secure PIN and never share it. Change it regularly for added safety.
- Pay in Local Currency
Always choose to pay in the currency loaded on your card to avoid unnecessary cross-currency conversion fees.
- Use Bank-Partnered ATMs
Withdraw money from ATMs affiliated with your forex card provider to minimise withdrawal fees.
- Monitor Transactions
Keep track of your spending through mobile apps to stay within budget and detect unauthorised transactions.
- Avoid Preauthorisation Holds
Some hotels and car rental companies put a hold on forex card funds, reducing your available balance. Use a credit card for deposits instead.
Common Mistakes to Avoid When Using a Forex Card
- Forgetting to Inform Your Bank: Some banks block international transactions for security reasons if not notified.
- Exchanging Currency at Hotels: Hotels often charge higher exchange fees. Always use an ATM or trusted provider like Unipay Forex.
- Ignoring Fees and Charges: Understand ATM fees, inactivity charges, and reload fees before choosing a forex card.
- Using in Sanctioned Countries: Forex cards are restricted in certain countries like Iran, North Korea, and Cuba.
- Ignoring Dynamic Currency Conversion (DCC): Merchants may offer to charge you in your home currency, but always choose the local currency for a better exchange rate.
What to Do If You Lose Your Forex Card?
Losing your forex card can be stressful, but taking quick action can minimise the damage.
- Contact Customer Service Immediately: Most providers, including Unipay Forex, offer 24/7 assistance to block your card.
- Block the Card: This prevents unauthorised use.
- Activate Backup Card: Many forex providers issue a backup card you can activate in emergencies.
- Check Account Activity: Look for suspicious transactions and report them immediately.
- Request Emergency Cash: Some providers offer emergency cash services until you receive a replacement card.
Conclusion
Forex cards are the smartest and safest way to manage money while travelling. Forex cards eliminate security risks, offer locked-in exchange rates, and simplify payments across multiple destinations. These forex card benefits eliminate the hassle of carrying large amounts of cash and offer better financial control while travelling.
If you’re planning an international trip, Unipay Forex provides trusted forex card services with competitive exchange rates and seamless transactions.
Get your forex card today and travel with confidence!
