A forex card is used for making payments while trading in the forex market or travelling abroad. These cards are usually preloaded and it enables you to access money in the required regional currency. One good thing about the forex card is that it can be set up according to your requirements and preferences. With the forex card, you can easily withdraw cash in foreign currency, check your balance and even pay for services. At the moment, some of the banks which offers the services of providing clients with a forex prepaid card includes Axis Bank, Standard Chartered Bank, Bank of India, HDFC Bank and ICICI Bank.
To apply for the forex card, you will need to fill a form and provide any of the required documents by your region as mandated by the Foreign exchange Management and Regulations in your region, a proof of passport and the required funds. The card gets activated once the funds are cleared or paid to the bank.
Depending on the purpose for which you want to use the forex card, there is a maximum amount of fund you can use to fund your account. For a leisure trip some regions have a maximum deposit of between $10, 000 and $25, 000 for business trips. Bank charges are also charged on the use of the cards.
These forex cards are cost effective and by using the cards, you can avoid the stress attached with conversion of currencies since it is available all round the clock but with just a little token charged each time you make withdrawals.
When using the forex card, make sure you are aware of the exchange rates because all transactions take place at this exchange rates.
Please be reminded that you can only top up the forex card in your own region before embarking on the trip. Your card cannot be topped up in another region even if your bank has a branch in that region.
In the case of loss or theft, you will be required to intimate the issuing centre of the latest development concerning your forex card. The information required during this time will include your location in the last 48 hours since this is the time the bank will take to courier a replacement. In case of exigencies, it may send cash through money transfer facility, but costs will have to be borne.
Using the Forex card is very easy and follows after the principle of using a prepaid card. All you need to do is to present it when making payments abroad and you are good to go.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.