By our guest blogger Mehul.
Foreign transaction fee –
A foreign transaction fee is a fee that one pays for using one’s debit card or credit card outside one’s country. While the rate varies, it is, on average, 3% to 4% of the total transaction.
At first, 3% to 4% probably does not look much, but if your transaction value comes up to, say, INR 1,00,000, you will have to pay INR 3,000 to INR 4,000 in the form of foreign transaction fee to the card issuer. In comparison, transaction fee using a Buy Forex Online prepaid Forex card is negligible.
Currency conversion fee –
When you withdraw money from a card in a foreign country, the charges are not just limited to the foreign transaction fees. There is currency conversion fee as well. While foreign transaction fee is charged by the card issuer, currency conversion fee is charged by the payment processor. The most common payment processor companies are Visa and MasterCard. They usually charge 1% of the total transaction amount.
Avoid Dynamic Currency Conversion –
When you use an ATM in a foreign country, you will, in general cases, get the option of getting charged in either the local currency or in your currency (INR). You may believe that it is nice of the bank for giving you the option of getting charged in your currency, but you may want to think otherwise.
Why? That is because it is not a good option. In fact, they should not be giving you the option in the first place. If you opt for getting charged in your currency, you will be charged more. The ideal option is to get charged in the local currency. Which mean, if you are using an ATM in England, opt for GBP; if you are using an ATM in the U.S., opt for USD; or if you are using an ATM in Thailand, opt for THB. Never select the option to get charged in your currency, i.e., INR. If you choose to get charged in INR at a foreign ATM, you will get charged as per the rate set by the foreign bank which owns the ATM.
Is travelling with only cash a good option?
Foreign transaction fee and currency exchange fee might have made you look for the other option – carrying cash. But there is an element of huge risk associated with carrying cash on your visit to a foreign country. If you lose your cash due to theft or any other reason, your entire trip can get affected. In addition to that, if you are going to convert INR to a foreign currency, you will be charged on currency exchange fee. While it is advisable to carry a little bit of cash, but depending completely on cash would be a foolish choice.
No-fee foreign exchange bureaus
You may come across agencies, which deals in foreign exchange, promising no-fee foreign exchange. While it is true and they generally do not apply any conditions to this offer, there is a catch. The exchange rate they offer is worse than you will find at any other place. What they do is the set high exchange rate which covers the foreign exchange fee. So, conclusively, their offer is not technically an offer but a scam.
Bottom Line –
Foreign transaction fee, coupled with currency exchange fee, can cost you 3% to 7% just in the form of charges. But you can save the money if you get yourself a prepaid Forex card and load it with foreign currency/currencies.
In fact, if you opt for a prepaid Forex card from Buy Forex Online, your charges would come down to less than 1%. Apart from that, there are several advantages of carrying money in a prepaid Forex card from Buy Forex Online, such as:
- Lowest exchange rates –
Buy Forex Online guarantees the lowest exchange rates in India on its prepaid Forex card compared to any other mode of foreign exchange.
- Two free ATM withdrawals –
While withdrawing money from an ATM in a foreign country, using your debit or credit card, will cost you 3% to 7% of the total transaction amount; Buy Forex Online offers two free ATM withdrawals in a foreign country.
- No online transaction fee –
If you use your Buy Forex Online prepaid Forex card to make an online payment, you will not incur any transaction fee. In fact, it is not just limited to online transactions, but also for direct card payment.
- Free home delivery –
Buy Forex Online assures free home delivery of prepaid Forex card in as many as 70 locations across India in not more than 48 hours (excluding holidays).
- No margin rates –
Unlike debit card and credit card issuers, Buy Forex Online omits margin rate.
- Easy reload –
Reloading your prepaid Forex card from Buy Forex Online is unbelievably easy. It takes not more than 12 hours to reload the card.
- Safety –
Keeping your money safe is the most important parameter for any person. When you carry a prepaid Forex card purchased from Buy Forex Online, it is completely safe. Even if you lose the card or it gets stolen, Buy Forex Online would go over and above its regular call of action and provide you with a substitute prepaid Forex card.
- Customer support –
Buy Forex Online is there to help its customers 24/7.