Running out of money and losing your passport are the two nightmare scenarios which can ruin your trip aboard. It can result in you being stranded in a foreign land without much help. In this post, we’ll discuss the best ways to handle travel money using a forex card or cash passport.
Why use a forex card for international travels?
Cash passport or forex card, traveller’s cheque, cash, credit and debit cards are some of the easiest ways an international traveller can carry foreign currency. Each of these modes has its own pros and cons. While carrying large amounts of cash involves high risk, most debit and credit cards give poor forex exchange rates and you could also be charged transaction fees for using them. While some cards (offered in countries like the USA) charge zero fees on international ATM withdrawals, most banks in most countries charge high fees for such cash withdrawals.
In our opinion, a multi-currency cash passport or forex card is one of the cheapest and convenient ways to carry money while travelling internationally. When we took a forex travel money card for the first time, we were slightly sceptical about its acceptance worldwide. But within a day we realised that a cash passport is like any other credit or debit card. It can be used to pay wherever they accept card payments (which is almost everywhere these days).
Do you want to save money on accommodation while travelling? Read our guide, Tips and tricks to book cheap accommodation.
Here is everything you need to know about using a multi-currency cash passport or forex card for your international travels.
1) Safe and convenient to use
We have used a cash passport or forex card in multiple European countries, UAE, South Africa, Singapore and Thailand. It was convenient and safe to use. Once the forex card is loaded with money and has been activated, it is ready to use. The card can be swiped to make payments just like any debit card without incurring any additional fees. It can also be used for online payments.
2) Low forex exchange rate
You get the lowest forex exchange rate while loading travel money in a forex card. For instance, if we compare forex exchange rates in India, there is always a difference ranging between INR 0.4 to INR 1.2 per unit between forex card and currency notes.
This difference in forex exchange might seem small to some when dealing with in-demand and high-value currencies like US dollar, Euro or British Pound. But for lower value and not so popular currencies like South African Rand, Swedish Krona, Danish Krona etc. getting currency notes in your country could prove to be very expensive.
For instance, while writing this article the forex exchange rate in India for South African Rand (ZAR) was INR 5 for 1 ZAR if you load money in a forex card. But if want ZAR currency notes then you’ll pay INR 6 for 1 ZAR. So, a traveller would be paying 18% more to get currency notes compared to loading money in a forex card.
3) Multiple currencies on a single card
If you are visiting multiple countries, you can load different currencies in the same travel money card.
4) No worry of handing a new currency
Dealing with a new currency can be slightly confusing. You might have to keep checking if you are paying the right amount and getting the right change back. It gets more confusing with coins. With a cash passport, you don’t have to worry. With forex cards, you don’t have to count the change every time.
5) Manage your travel spends online
You don’t have to keep a track of your spendings and balance. A traveller can keep track of his or her spends online. Also, you get an intimation for all the transactions via SMS and email whenever the card is swiped. It helps in managing your travel funds while you enjoy your vacation.
6) Can be reloaded
A forex card can be easily reloaded online when you run out of money.
7) Balance is refundable
If you have any money left in a forex card at the end of your trip it is refundable.
8) Cash can be withdrawn from ATM
A traveller can withdraw cash using a forex card from an ATM in a foreign land if needed (this usually involves a small fee).
Pro Travel Tip: Since withdrawing cash using multi-currency forex card is not free, avoid withdrawing smaller amounts.
9) Always pay in the currency you are billed
Make sure you are paying in the currency you have loaded in the forex card. A lot of times while swiping any card (debit or credit or forex) you would be asked if you want to pay in your own currency (it’s a small scam especially at airports). Never ever opt for paying in your own currency. Always pay in the currency in which you are billed by the seller.
10) Additional travel money card
If your cash passport is stolen, you can activate the alternate card given to you. While getting a travel money card, you are always given two cards for safety purposes. Keep them separately when travelling.
11) Reloading money takes some time
When you reload your forex card, money won’t be uploaded instantly. So if you think that you might run out of money soon, reload your card immediately. Don’t wait till the moment you have run out of your travel money. Also make sure that you have a contact person’s details from the issuing company in case of an emergency.
12) Activate your forex card before departing
On one of our trips, we had uploaded our forex card one day prior to departure. We were told that the card would get activated within 12 hours. But once we landed and tried using the travel money card, the transaction didn’t go through. As a result we were stuck in a foreign country without any local currency. So make sure to always carry some local currency when you are travelling abroad. Also, get the cash passport loaded a few days before the trip and make sure it is activated before you leave.
So finally, here are our 5 top reasons to use a multi-currency forex card:
- No need to calculate how much money to carry for the whole trip since it can be easily reloaded
- Avoid the hassle of carrying around a lot of cash
- No need to pay transaction fees like credit cards
- The forex exchange rate you get while loading your forex card is always lower than cash and travellers cheques
- You can track all your spendings online
We would highly recommend using a forex card for your international travels. It is not only easy but also saves you money and unnecessary stress.
Hey nice article , I got to know lot of things about forex cards from your article. Would apply these on my next trip. Thanks.
Thanks… Glad you liked the post. You must try using a forex card for your next travel.