With the variety of options available in the market, choosing a forex card can become more difficult. Many features and charges often confuse newcomers. But worry not, in this article, we will delve into the details of these features and charges to help you make an informed decision.
Many people often confuse markup fees with cross-currency fees. Markup fee refers to your card being directly converted from your local currency to the currency of your choice, and due to this conversion, you may have to pay up to 4% of your transaction amount.
However, many cards offer a feature where you don’t have to pay any forex markup fee; instead, you just need to add the currency in which you want to make the payment. For example, if you want to make a purchase in dollars, you add dollars to your forex card.
So, what is this cross-currency usage fee? Let’s say your forex card supports three currencies: USD, AUD, and CAD, and you only add USD to your card. If you then do a transaction in AUD without adding AUD to your card, technically your USD is being converted to AUD, and you may have to pay a cross-currency usage fee. To avoid this fee, simply add AUD currency to your card, or choose a card with zero cross-currency fees.
1) Choose a forex card with zero cross currency Fee :
Today many forex card offers zero cross currency fee in their card and this makes your journey very convinient you only need to add one currency and you can do transaction in any other currency you want.
2) compare charges of different forex cards
Always compare the charges of other forex card it won’t take long time but it will save you a lot of money because many forex card providers charged you a hefty amount of money without providing much value.
3) choose a card with free travel insurance
Today, most forex card providers offer free travel insurance with their forex cards. However, they often impose many terms and conditions, so it’s essential to read them carefully. When you’re traveling abroad, taking out travel insurance is necessary, but you don’t have to worry about it. Simply choose a card with complimentary free travel insurance to ensure you’re covered during your travels.
4) Always ask forex card companies of inactivity charges:
Many forex card providers often charge you an inactivity fee after a few months of inactivity, but they may not clearly disclose these charges in their user manual or on their website. Therefore, it’s important to inquire with the customer care executive about any potential inactivity or hidden fees associated with the card that may not be mentioned in the user manual. This will help you avoid any unexpected charges and make an informed decision about choosing the right forex card for your needs.
