Are you planning to go on a world tour with your loved one? If so, you will need to sit with your partner and plan everything properly. You will need to obtain your travel documents, such as passports and travel visas. You will have to buy air tickets and book hotels abroad. Your plan must also include the best way to carry foreign currency abroad.
There are several options to carry foreign currency on your travels abroad. You can choose to carry liquid cash, debit card, or a multi-currency forex card. But, which option reaps more benefits? If you carry a large amount of cash, you are always at the risk of cash misplacement or theft. Using a debit card to make foreign transactions comes with hefty foreign transaction fees.
The best way to carry foreign currency abroad
While comparing the above-said options to carry foreign currency, you will need to be mindful of the following things:
- Understanding the difference between each option
A multi-currency forex card is a prepaid travel card that comes preloaded with multiple foreign currencies; it offers the best exchange rates. You can use a multi-currency forex card to make international bookings and payments at hotels, restaurants, stores, airlines, and petrol stations at zero charges.
The best part about a forex card is that it offers protection against foreign exchange rates throughout your journey. As with a debit card, it is similar to a forex card. But it comes with higher currency conversion charges.
Both multi-currency forex cards and debit cards can be used at merchant outlets, restaurants, hotels, bars, ATMs. The only difference is a forex card offers immunity against foreign currency exchange rates and zero currency conversion charges while making foreign transactions. If you use a debit card, you are not going to get the best exchange rates as banks usually charge a markup fee.
It is worth noting that some merchant outlets and establishments do not accept forex cards. In such cases, it is advisable to carry foreign currency notes/cash to complete your order. So, make sure you have extra cash to meet emergencies.
A forex card comes with all the security features of a credit card. It comes with an embedded chip and PIN technology that stores your data in encrypted form, preventing any unauthorized transaction. Besides, a forex card is not linked to any bank account, so any chances of security lapse are out of the question.
On the other hand, your debit card may get blocked if the bank finds that it is compromised. It means that you will not be able to make transactions on your travels abroad. Carrying a large sum of money has its own risk of misplacement or theft.
- Foreign exchange rates
A forex card’s popularity stems from the fact that you can avail yourself of the best exchange rates while loading your forex card. It is worth noting that the value of a foreign currency is determined at the time of loading, so you are protected against fluctuating foreign exchange rates.
As with a debit card, it is always subject to fluctuations and foreign exchange rates are not in your favor, you will lose a considerable amount. You will also have to incur higher transaction fees. As with cash, you will have to bear similar costs.
A multi-current forex card can be loaded up to a certain limit. But, if you happen to finish your balance on your travels abroad, you can reload it any time from anywhere.
A debit card does not have such a featuring. Your spending depends on the amount of money available in your bank account. Carrying cash is not a wise option. If you run out of cash during an emergency, you will be left stranded in a foreign country.
If you are traveling abroad, it is better to get a multi-currency forex card to enjoy a stress-free journey. It would also be wise to keep some cash to cater to emergencies.