Five smart things to know about pre-paid forex cards

1. Banks issue pre-paid cards that are loaded with foreign currency and can be used during foreign travel, without having to carry cash or traveller’s cheques.

2. A pre-paid forex card can be single currency, or multiple currency card depending on the requirement of the user.

3. The currency loaded on the card is as per exchange rates on the date of purchase, and any currency risk is borne by the customer.

4. Pre-paid currency cards can be used for online transactions and cash withdrawal using a PIN assigned to the card.

5. Cards can be reloaded remotely at the bank, by a third party, who should fill up all the required documents for transmitting of foreign exchange as per RBI rules.

(Content is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)