Travelling outside India? Know the charges of using credit/ debit card
If you frequently travel abroad for business and pleasure, you may be aware of the numerous expenses associated with such excursions, all of which must be carefully managed. Even though having access to money is important when traveling, it is not always a good idea to carry cash for a variety of reasons, including theft, the difficulties of holding large amounts of money, etc. Consider using international cards. Travelers have always favored credit card/debit card payment because it is more convenient than carrying large amounts of cash. Credit cards are a crucial financial tool that gives their owners the luxury of making purchases now and paying the money back at a later time. By using a credit card, you are essentially borrowing money from the company issuing it, with the promise to repay it at the end of your statement period. A debit card is a type of payment card that allows you to take money out of your checking account to make safe and simple purchases both in-person and online. People are unaware of the Transaction charges involved with debit/credit cards and how banks and financial institutions utilize devious methods to steal their hard-earned money. When you swipe your card outside of your nation, Without informing you, every one of the parties withdraws their transactions from the contract.
We are here to help you to know the various charges involved in using credit/debit cards and also learn how to implement the strategy to save your hard-earned money while traveling abroad. Major types of transaction charges involved:
- Currency conversion fee: Even though your card was issued in India, when you swipe it outside of India, the money that is being paid is not Indian rupees. In addition, the funds on your card are converted to the local currency, and a currency conversion fee is charged that depending on the amount converted can be as high as 2%.
- Foreign transaction fee: You must pay a foreign transaction fee, which is a premium when using your debit card to make an overseas purchase. Whether you use your card to buy goods online or to pay a restaurant bill, your card issuer will charge you 2.5% to 3.5% of the total transaction value.
- ATM withdrawal fee: You can only withdraw money from ATMs of foreign banks that have agreements with the company issuing your debit card, so keep that in mind. You can be required to pay up to 4% of the amount withdrawn each time. Even worse, some ATMs charge a flat $5 fee, which can further increase your costs.
- Cash advance fee: You will still be charged the cash advance fee whether you use your credit card in India or elsewhere. In India, a cash advance often costs 2.5% to 3% of the total sum. The cost will be slightly higher if you use your credit card to use an ATM in another nation.
- Over limit fee: Cardholders who make transactions exceed their credit limit are charged an "over limit fee" of as much as 2% of the amount spent. You typically find yourself in this situation when unplanned expenses arise and you are compelled to spend more credit than is permitted on your card. Therefore, it is always wise to know your debit/credit card spending limit.
- Risk of Skimming/Cloning: It is better not expose your credit /debit card in foreign land as there remains a risk of cloning/skimming of credit cards. With prepaid forex card, risk is limited to the extent of amount loaded in the card.
The bank charges you a tonne of pointless service fees, associated with international debit cards that can adversely affect your budget. You should use an alternative to manage payments abroad. A Best forex card will greatly improve your payment experience in addition to increasing your savings. With Orient Exchange Prepaid Travel Cards, you can avoid paying the extra fee that is assessed when you use your foreign debit/credit card. It does not subject you to variable rates because the foreign currency stored on your prepaid card is loaded at a set rate. Prepaid travel cards are entirely replaceable in the event of loss or theft because it is pin protected. So in a conclusion, for meeting your financial needs while traveling overseas, forex cards can provide savings of up to 6.5% compared to credit/debit cards. The features of these cards will never let you down, whether you're using them to make ATM withdrawals or pay at a nearby store. Leading suppliers offer specialized Smartphone applications that let you manage your card completely from one location. Therefore, if convenience and safety are your main goals, be sure to buy a prepaid forex card so you may manage your costs abroad without any issues.