How do you carry money while travelling abroad? The most popular ways of carrying foreign currency are : Cash and Travellers Cheque. Both of these options are troublesome, as carrying foreign currency in cash is risky and getting travellers cheque encashed is itself a burden in foreign country. But the introduction of Travel card has made the travellers overcome these hassles as this is a new alternative of carrying foreign currency abroad.
What Is A Prepaid Travel Card?
As name suggest it is a prepaid card especially designed for travel purpose. A travel card is a prepaid foreign currency denominated card that you can use abroad just like your debit or credit card. In simple words, you can use this card either for direct purchases by swiping at merchandise establishment or for ATM withdrawal.
These cards are backed either with MasterCard or Visa which makes them acceptable at overseas network for cash and purchases.
What Are The Advantages Of Travel Card?
- Offer Convenience:- Travel cards is definitely a convenient option as it offers you:-
- The convenience of spending money abroad in the same way as you use your debit card in your home country.
- Facility of blocking old and issuing new card in replacement offers great convenience by the customer support group of the issuing authority.
- Online access of transaction details and balance enquiry helps traveller to keep a check on his card.
- You can reload your cards with the foreign currency according to your requirement.
- Offer Benefits:- Travel card offers you some additional befits like insurance. When you buy travel card from bank and activate the same the insurance benefits attached with the card gets activated itself, which offers you multiple insurance benefits which includes:-
- Personal accident
- Loss of travel documents
- Missing connecting flight
- Delay in flight due to delay in receiving checked baggage etc.
- Saving :-Travel card helps you save your money :-
- It helps you save transaction charges of up to 3.5%, which are charged when you use your normal credit card for international transactions.
- It also helps avoid the risk that comes from fluctuating exchange rates that are applied when a traveller’s cheque is encashed.
Is Bank Account Required To Get A Travel Card?
Banks issue travel card to both customers and non-customers which means having bank account with the issuing bank is not required to get the travel card.
What All Documents Are Required To Get A Travel Card?
You can get your travel cards loaded with foreign currency (Forex) up to a specified limit. Like in normal cases issue of Forex involve some additional paper work which includes submission of documents like :-
- Copy of passport
- Copy of confirmed tickets
- Copy of PAN card / Form 60
- Statement of purpose of your visit (Form A2)
- Declaration that you haven’t exceeded your $10,000 yearly foreign exchange quota (Basic Travel Quota – BTQ – From)
What All Currencies Are Available To Load Or Reload A Travel Card?
- US Dollar ($)
- Euro (€)
- Pound Sterling (£)
- Canadian Dollar ($)
- Japanese Yen (¥)
- Australian Dollar ($)
- Swiss Francs (CHF)
What Is The Payment Method For A Non-Customer To Get The Travel Card?
Anyone want to get a travel card can make payment to the bank in Indian rupees. Bank deduct some charges for offering this facility and issue a travel card with amount loaded in the foreign currency according to the prevailing exchange rate on the date of purchase.
What Are The Validity Terms Of A Travel Card?
Once issued, a travel card remains valid for five years. You can get the leftover or unutilized foreign currency encashed in Indian rupees anytime before the expiry of your card at the prevailing exchange rate.
What Is The Limit On Buying Foreign Exchange For An International Travel Card?
RBI (Reserve Bank Of India) have imposed a limit of $10,000 on buying foreign exchange for international travel per calendar year for most transactions. It can go up to $25,000 per visit if the travel is for business purposes.
What Are The Different Kind Of Additional Charges Involved With A Travel Card?
Card Issue : Bank charges one time fees for issuing travel card, which ranges from Rs 110 to Rs 150.
Reload Fee :- First time bank issues cash loaded (with foreign currency) card with no extra fee. But for further cash reloading you need to pay a cost of Rs 50 to Rs 100 per reload.
Use At A Merchant: There is no fee charged by the bank for using the card at a merchant establishment.
ATM Withdrawal: ATM withdrawal using travel card involves a charge of Rs $1.50 to $2.00 per withdrawal.
ATM Balance Inquiry: Travel card balance inquiry at ATM involves a charge of around $0.50 per enquiry.
Note :- Almost all leading banks offers Travel Currency Cards with attractive offers. Which includes zero initial fee, zero reload fee and attractive exchange rates etc..