Forex cards vs cash currency: Which is better for your international trip?

When planning a trip abroad, one of the most important decisions travelers face is how to manage their finances while overseas. Should you rely on cash currency or opt for a forex card? While both options have their advantages, a forex card has become the preferred choice for many due to several reasons. Better conversion rates with forex cards One of the main factors that make forex cards a preferred option is the better conversion rates they offer.

Unlike cash, where rates can fluctuate based on market demand, forex cards allow you to lock in the exchange rate at the time of loading. Pavan Kavad, Managing Director of Prithvi Exchange (India) Limited, points out, "Forex cards provide more competitive and affordable rates than cash, which can change unpredictably based on market conditions. When you load a forex card, the exchange rate is instantly locked in, giving you better value for your money.



" Enhanced safety Forex cards also stand out for the security they offer. These cards are equipped with chip and PIN technology, making them a safer alternative to carrying large amounts of cash. If your forex card is lost or stolen, it can be instantly blocked, ensuring that your funds remain secure.

Convenience in carrying multiple currencies Carrying cash for every destination during international travel can be cumbersome. "With a forex card, however, a single multi-currency card can hold over 15 different currencies, reducing the need to carry multiple cash types," said Kavad. Real-time tracking of expenses Another benefit of forex cards is the convenience they offer through linked mobile apps.

"Forex cards are linked to mobile applications, which makes it easier to monitor your account balance and track expenses in real time. This helps travelers stay on budget," added Kavad. Easy encashment after your trip Unused foreign currency can often be a challenge to exchange back into INR at favorable rates.

However, any leftover balance on a forex card can be easily converted back to INR after your trip, offering travelers a straightforward way to reclaim their remaining funds. ALSO READ | Tips for managing forex transactions when traveling abroad.