Best Forex Cards for International Students at a Glance
The forex card is a pre-paid multi-currency card which will enable students to safely carry their foreign currency while studying abroad. This card resembles a debit card but is specially designed for international transactions. The students can use the card to make payments of their fees as well as other expenses including shopping and travel expenses.
The students will be able to deposit various currencies in their cards, pre-set exchange rates and use them in ATM as well as online transactions around the world. For Indian students studying abroad, a forex card may be more convenient in terms of handling finances and minimize the hassle of currency conversion and transaction charges.
Top 5 Best Forex Cards for Students
- HDFC Bank ISIC Forex Plus Card
- ICICI Bank Student Forex Prepaid Card
- Axis Bank Forex Card
- Niyo Global Card
- Wise Travel Card
There are various forex cards for Indian students available in the market, but which forex card is best for students ultimately depends on their individual needs, such as fees, exchange rates, international acceptance, ease of use, and travel benefits.
Forex Card for International Students: Is It Worth It?
A forex card is something which may be considered as being convenient for the foreign students as far as handling the foreign currency is concerned. A forex card provides the advantage of a prepaid card along with the facility of spending in foreign countries.
Key Uses of Forex Cards for International Students
- Proof of Identity: Some of the Student Forex Cards, like those that combine with ISIC cards, have two functions. In addition to acting as a means of payment, such a card may also be used as a global proof of identity for the student. This may enable the student to enjoy discounts on transportation, accommodations, insurance, meals, and other shopping.
- Prepaid Debit Card for Spends: Student Forex Cards work similarly to pre-paid debit cards. Once foreign currency is loaded on to the card, it can be spent at merchants accepting card payments, with each purchase being debited from the total amount available. As all transactions are recorded online, students will be able to keep track of how much money they are spending and have better control over their budget. Some types of the card might also give access to partner discounts.
- ATM Cash Withdrawals: For student forex cards, one can access the local currency through ATMs worldwide. It can prove to be handy while doing everyday transactions requiring cash. But, the students should inquire about the ATM fees associated with that particular card before using it at any ATM.
Advantages of Using a Student Forex Card
- Safety and Security: A Student Forex Card helps to lessen the necessity of carrying cash. In the event of loss or theft, it can usually be stopped quickly, thereby minimizing any risk to finances. It also has other replacement alternatives depending on the policy of the issuing bank.
- Multiple Currency Loading: The Student Forex Card usually loads many foreign currencies. It is helpful for those students who intend to visit several countries while pursuing their education. Students need not change currencies every time; they can manage their various currencies using the same card provided by the respective provider.
- Protection Against Currency Fluctuations: When foreign currency is loaded on the card, the exchange rate is fixed at that time of the transaction. Students are therefore protected against negative currency fluctuations.
- Easy Reloading Facilities: Student Forex Cards have reloading facilities such as NetBanking and authorized bank branches provided by the respective providers.
- Wide Global Acceptance: Student Forex cards may usually be used at merchant locations as well as automated teller machines globally. Students may use these cards for all types of expenditures wherever the forex card network is functional.
How a Student Forex Card Works
A student forex card is essentially a prepaid card designed for students studying abroad. It allows students to load foreign currency in India and then use that balance overseas.
How It Works — Step by Step
- Get the card: You can obtain the card from a bank or the forex card company. It may require some documentation on the part of the student such as his passport, visa or admission papers, and KYC details.
- Put money into the card from India: Your Indian bank account is credited to your forex card as per the process of the forex card company.
- Use the card abroad: When abroad, you will be able to use your card in shops, hotels, universities, and anywhere else where the particular card network is accepted such as Visa or MasterCard. The amount spent from your foreign currency balance.
- Withdraw cash when needed: You will be able to withdraw cash with the card using an international ATM. But there would be fees charged by both the ATM company and the forex card company.
- Recharge when needed: When the foreign currency balance gets low, the student or the parents can recharge the card from India.
Forex Card Comparison India: What Matters Most
The selection of forex card depends not only on the advertising of forex card being without forex fees. It is recommended for students to make a forex card comparison in India in terms of cost, services and convenience while choosing a card.
Currency: Almost all forex cards provide their users an opportunity to have several currencies on the same account. However, there can be a forex card where only one currency can be used or balance can be kept in INR and then converted at the moment of making a payment. Students who need to have their foreign currency balance in advance are supposed to find a forex card which will provide a possibility to use the currency they will need.
Exchange Rate: It can happen that some forex card will be advertised without any exchange or forex fees. However, it does not mean that total exchange will be free because it will include certain costs in exchange rate.
Conversion Fee: The conversion fee in forex cards might add a certain margin to the interbank rate during the process of conversion of INR into the foreign currency needed. This will make the overall cost higher. Check the conversion fees and the rates before choosing your card.
Digital Card: For the students who pay for goods online and via mobiles, a digital card would be beneficial. It is because the digital card might have a separate set of information from that of the physical one.
Application/ Reload Process: There might be some providers that ask for personal visits to stores or banks in order to apply or reload the card. There could be some providers offering the process of online application and reloading. It would be better if a provider offers simple online application and reloading process.
Fees: Students should check all applicable fees, including:
- Issuance fees
- Annual or maintenance fees
- Inactivity fees
- ATM withdrawal charges
- Currency conversion charges
- Reload fees
- Card replacement charges
- Refund or cancellation charges
Looking at the complete fee structure can help students avoid unexpected costs.
Shortlist of Top Student Forex Cards
- Wise Travel Card
- Supported currencies for holding and exchange: 40+ currencies
- Issuance and maintenance fees: Free; no maintenance fee
- Niyo Global Forex Card
- Supported currencies for holding and exchange: INR only
- Issuance fee: No issuance fee
- Annual fee: ₹499 + GST, which is waived if the average monthly balance (AMB) is ₹5,000
- HDFC Multicurrency Platinum ForexPlus Chip Card
- Supported currencies for holding and exchange: 22 currencies
- Issuance fee: ₹500 + GST
- Maintenance fee: No maintenance fee
- ICICI Multi-Currency Forex Prepaid Card
- Supported currencies for holding and exchange: 15 currencies
- Issuance fee: No issuance fee
- Annual fee: No annual fee
Fees Students Often Miss
The fee charged on the card is not the entire amount that will be paid by the students. The other charges that one has to consider are the following when picking a forex card.
ATM Withdrawal Fee: You will have to pay a flat fee whenever you withdraw foreign currencies using the card. There might also be additional fees charged by the ATM provider.
Cross-Currency Conversion Fee: If you use a different currency from the one loaded in the card, there might be extra charges on that currency conversion.
Reload Fees: Whenever you recharge your card multiple times, there will be additional charges either flat or percentage-based, depending on the provider.
Inactivity Fee or Annual Fee: This might be applicable if the card remains idle for a certain period.
Card Replacement Fees: In case you get lost with your card abroad, there might be card replacement or emergency delivery fees.
Refund Fees or Cancellation Fees: If you convert your foreign currencies back into INR, there might be additional charges.
The Right Card Mix Abroad
Instead of carrying a single card, students may want to carry a variety of payment instruments.
Primary Card – Inexpensive Everyday Purchases
Carry a low-forex-markup debit or forex card for everyday purchases, such as buying groceries, paying for travel, meals at restaurants, and other everyday expenses.
Backup Card – Different Bank
Have a second card from another bank that you can use in case your main card gets blocked, lost, frozen due to some suspicious activity, or for some other reason becomes unavailable.
It is not merely a matter of convenience but an essential safety measure.
Credit Card – For Unexpected Situations and Deposits
A foreign credit card would be helpful when you need a credit card, for example, in order to make deposits at hotels and rental cars or when the purchase cannot be made using pre-paid cards.
Common Student Mistakes
Failure to Monitor Forex Card Balance: Since a forex card can be used based on the amount of money loaded into it, lack of monitoring of transactions and balance might lead to a decline of your card when needed.
Failure to Inform Your Bank: Usage of a card outside India without travel-related settings set might lead to your bank flagging you as fraud and blocking your account.
Ignoring ATM Fees: Fees for international usage of ATM will be charged to you both by your card company and the local ATM company.
Disabling International Transactions: Even if your card is functional, it will be declined since international transactions or online transactions will be disabled.
Failure to Check Expiry Date: It’s important to monitor the expiry date of your card and make sure that it does not expire during your stay abroad.
Keeping All Cards Together: Do not keep your primary card and all additional cards in one wallet, as losing it will lead to loss of all payment options.
Conclusion
The best forex card for students largely depend on how and where the students plans to use it. The type of currencies supported by the forex card, exchange rates, currency conversion charges, ATM charges, reloading charges, maintenance charges, and other application fees could play a major role in determining the effectiveness of the card.
A recommended practice is to have a primary forex card that will ensure that the student has easy access to funds for day-to-day transactions while keeping a secondary card from another vendor. Having an international credit card at all times as a back up option is also advisable.
While selecting the forex card, a student should focus not just on the forex charges but also on the total fees that come with it.
FAQs
Wise can be preferable if you need to hold and exchange multiple currencies, while Niyo Global Forex Card is an option for students looking for a card with INR-based spending and its stated fee structure.
The HDFC Multicurrency Platinum ForexPlus Chip Card is one of the options listed for students, supporting 22 currencies with a ₹500 + GST issuance fee and no maintenance fee.
Among the cards listed, Wise Travel Card has free issuance and no maintenance fee, while ICICI Multi-Currency Forex Prepaid Card has no issuance fee or annual fee.
Students studying abroad can generally apply for a forex card through a bank or forex-card provider and may need documents such as a passport, student visa or admission documents, and KYC information.
The choice depends on your requirements: HDFC's listed card supports 22 currencies, while the ICICI Multi-Currency Forex Prepaid Card supports 15 currencies and has no issuance or annual fee.
The choice depends on your requirements: HDFC's listed card supports 22 currencies, while the ICICI Multi-Currency Forex Prepaid Card supports 15 currencies and has no issuance or annual fee.