Planning to travel abroad, which card to use?
If you are also planning to travel abroad, then this news can be of use to you. People often use credit cards or forex cards to travel abroad. All cards have their own advantages and disadvantages. In such a situation, the question arises which card should you use in these two cards, so that you get the least amount of damage.
Let us tell you, from July 1, 20 percent TDS will be charged for sending money abroad or using forex card. In the coming days, it can become a bell of trouble for you and can also be expensive. In such a situation, let us explain to you the difference between these cards so that you can decide for yourself which card can be beneficial for you to use while traveling abroad.
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These charges apply on the card
Forex markup charges are applicable on credit cards. Which makes its use even more expensive. Apart from this, if you pay abroad through credit card or withdraw money from ATM, then it may cost you dearly.
Now people use forex card to reduce the same expenses and charges. You can avoid all these charges with a forex card. There are no charges for transactions through Forex cards.
What is the difference between both the cards?
forex markup fee
As you have just read above that with forex card you do not have to pay any forex fee on any kind of transaction abroad, while with credit card you find it more expensive to transact abroad. This is the biggest and most important difference between both the cards.
Foreign currency rate fluctuations
Paying in foreign currency by credit card is risky as foreign exchange rates fluctuate every minute as you have to pay at the prevailing rate.
Whereas in forex cards the rates of currencies are locked as soon as they are stored on your card. Therefore, when you pay in foreign currency, the prevailing rate does not matter. The currency you have stored on your card is applicable.
Easy to withdraw cash
When you withdraw cash from an ATM using a credit card, a cash advance fee of 3.5 per cent is levied on the amount withdrawn.
Cash withdrawal charges are also applicable in Forex cards, but these charges are generally less and are fixed according to the amount.