withdrawal of foreign currency. Pros and cons You wont be able to spend more money than you have on the card. Some specialist credit card providers wont charge you to use them abroad check out our guide Cheap cards to use abroad. Using a credit card abroad for foreign currency transactions may be fine but it is expensive. You can use them to buy things costing less than the value of the cheque and youll get change in local currency. Top tip, getting your foreign currency in advance can help you plan an affordable holiday, as youll have time to shop around and avoid the uncertainty of changing exchange rates. If one uses a credit card abroad, there will be conversion charges, and if used at an ATM, an additional fee is levied. Cross currency markup charge- When the transaction currency is different from loaded on the card (for instance, if you have loaded the card with dollars and have to make a transaction in euros you may be charged a 'cross currency markup' of 3-3.5 percent. Look at fees as well as rates when you compare. 24-hour helpline: Have the helpline number handy. Tandon says that one should make sure that the card is always swiped in front of you. How safe are pre-paid cards?
Use the link below to find out more. Suggested breakup mix of cash and travel card is in the ration of 20:80 says Tandon. A good way to make sure youre covered just in case is to take a small amount of cash as well as a card and possibly some travellers cheques. Youll be charged a fee if you need to top-up or withdraw money from an ATM. Carrying cash when youre abroad is never as safe as using cards or travellers cheques. If you want to exchange them for cash youll need to find someone who accepts them so theres a little more legwork needed than if youre carrying cash. Some banks may levy this.
You might also need to take some cash for smaller purchases in case the retailer has a minimum card payment amount. Guide on buying currency and using travellers cheques and cards opens in new window. Avoid credit card fees make sure you choose a specialist credit card that wont charge you for using it while youre away. Do this and you'll benefit from near-perfect exchange rates (which'll beat the rates offered on exchanging cash in advance). Remember Try to pay in the local currency when paying by card.
When you return : When you return, get your balance on the card encashed as holding large amounts of foreign currency is prohibited. If youre buying above a certain amount, then the fee could be waived but its worth checking in advance to see how much youll pay. "The maximum amount which can be loaded is equivalent.5 lakh per annum per individual for the purposes covered by the Liberalised Remittance Scheme (LRS) notified by RBI informs Bhaktha. Check the charges you might need to pay a charge of around 5 to pick up your currency, or even have it delivered to you. Youll also be protected if you buy faulty goods or if something you ordered isnt delivered. If you are planning on going on a holiday abroad this summer, here is what you should know about prepaid forex cards. Insurance cover There could be different types of insurance cover on these forex cards.