How to get a travel card while travelling abroad

While travelling abroad, the traditional methods of spending include traveller’s cheques and currency notes. The modern alternative is the travel card, which is a prepaid card that works like a debit or a credit card. It is accepted at merchant establishments abroad due to the backing of MasterCard and Visa. It can also be used in ATM machines to withdraw cash while abroad. The travel card helps save on transaction charges of up to 3.5%, which are imposed when a normal credit card is used in international transactions. It also helps avoid the risk that comes from fluctuating exchange rates that are applied when a traveller's cheque is encashed.

Authorisation

A travel card is issued under the RBI guidelines, which permit foreign exchange to be bought to fund international travel. The purchased currency is reflected in the card.

Limit

The limit imposed on buying foreign exchange for international travel is $10,000 per calendar year for most transactions. It goes up to $25,000 per visit if the travel is for business purposes.

Payment

The amount required in rupees, based on the exchange rate on the date of purchase and bank charges, has to be remitted to the bank. Travel cards are issued by a bank to both customers and non-customers.

Reload

A travel card has a unique number and can be reloaded remotely for additional sums, as required. Indian rupees have to be remitted to the bank for reloading the card.

Points to note

Validity: A travel card is valid for five years and can be reloaded during this period. Any balance in the card can be encashed in Indian rupees.

Tracking the card:Card usage can be tracked online by using the IPIN. You can check transactions, balance and register for e-mail/SMS alerts.

Customer support: The issuing banks provide customer services, including reporting card loss, as is the case with credit cards.

The content on this page is courtesy Centre for Investment Education and Learning (CIEL).