Planning to study abroad and confused as to how to pay for your fees and other expenses? Go for a forex card.
Forex cards are prepaid cards on which you load money in local currency, which is then exchanged at a predetermined FX rate into the foreign currency of your choice. Forex cards can be used to withdraw money from ATMs, swiped at terminals, and can also be used to make online transactions.
Benefits of Forex card over Credit/Debit Card
- Issuance – If you buy forex cards online, there is no cost for issuance. Some banks, however, may charge between INR 0 and INR 350. The issue cost for most foreign debit cards is generally between INR 0-500. The issue cost for foreign credit cards is generally between INR 0-1500.
- Withdrawal fee – At ATMs, forex cards are charged $2 or its equivalent in another currency every withdrawal, whilst foreign debit cards are charged up to INR 500 per withdrawal and credit cards are charged up to INR 1000 per withdrawal.
- Merchant service fee – Forex cards do not have any merchant fee, whereas, for international debit cards and credit cards, an additional 3.5 percent merchant service fee can be charged.
- FX rates – Exchange rates for forex cards are fixed at the moment of loading, ensuring that there are no rate swings. For foreign debit and credit cards, however, rates cannot be frozen, and each transaction is subject to the day's highest rates.
- FX conversion charges – No additional conversion fees are charged, but for foreign debit and credit cards, 4-6 percent is charged to every transaction.
There are two types of Forex cards
Multi-currency cards allow you to load different currencies onto a single card. You can load up to 18 currencies on a single card, based on the vendor.
Single-currency cards are cards loaded with a single currency, and these can be a good option if travelling to a single country.
You can purchase cards from banks, online as well as offline vendors.
Documents required for purchasing Forex
- You will need to furnish a copy of your air ticket, education visa, passport
- For remittance, you will need to furnish an offer letter from the university, ID Proof Of Remitter, Passport, PAN Card, A2 Form (given by the service provider).
- If a parent is sending you money, they will need to submit proof of identity and residence proof apart from a PAN card.
- Ideally, forex can be purchased a month before you leave for the university.
- It's advisable to keep an eye on market prices as well as rates given by other outlets.
- A good investment is to have a combination of remittances and forex cards, which may save you 5-7 percent over traditional banks if acquired from an internet seller.
Our Forex Products
We offer our customers the options to buy foreign exchange in multiple forms like Currency Notes, Traveler’s Cheque, One-Currency Card, Multi-Currency Card, Money Gram and Student Forex. Our broad range of forex products caters to the foreign currency needs of a wide spectrum of clients, including vacationers, international students, regular business travellers, and those looking to transfer money to family or friends.