How to carry money is the main question for anyone travelling abroad. Should I use my credit card or buy a forex card. What is cheaper?
Me too always had to carefully plan how I carry money on my foreign trips. How much will need in cash and how much for swipe etc. Also many questions on mind. Pin set kiya? What if it doesn't dispense cash from foreign ATMs? Multiple cards as a backup just in case the primary doesn't work
Earlier for my backpacking trips, I used to carry forex card + cash + credit cards. Forex card had 3 free cash withdrawals which I used to plan my expenses and withdraw. For hostels, I used to pay via Credit Card.
Last backpacking trip where I went to 16 countries I used the Niyo Global card and was really amazed by its ease of usage and the money saved on charges.
Using a forex card I had a lot of constraints starting from procuring the card
Compulsory submission of passport copy with visa. Unable to procure card till visa arrival
Money needs to be transferred in the said currency when procuring the card. If multi-currency forex card then need to specify exact amounts
Same day exchange rates apply to the whole amount when transferring the money on the card
The service charge for availing the forex card
No paperless automated process to refill the same card forex card in the future. (It's a pain when travelling in a foreign country)
Just three or zero free ATM withdrawals. Depends on the card
Manual request to transfer remaining money on forex card to bank
Niyo Global Card an Indian rupees card that can be used in over 150 countries. It converts to currencies depending on the country you are using it.
Procuring the card:
Apply for the card here https://t.co/cl9WP2u6m5 The card is FREE
(This is my referral link where you and I both get Rs. 500 when you do your first international POS transaction of minimum 1000 Rs.)
Within 24 hrs a representative will call and visit you for further processing
Documents required:
Aadhaar card or driving license or passport
PAN Card
You will need to show the same in the original. The representative will upload the same on their app
Activation:
A representative will handover the card and pin. Activation within few hours. Login on the GoNiyo app and start using it
Usage/Adding money to the card:
Download the Niyo mobile app
Once your card is activated you can view your account no and IFSC code in the app
Transfer the required amount from your bank account to this account no. This is basically how you refill your card
First-time pin is included in your starter pack. Reset of the pin can be done from the mobile app
Your card is ready for use
Spending limits on the Niyo Global Card
Charges:
Comparison of Niyo Card against Forex card & Credit/Debit card
Forex markup charges: Zero. At the time of settlement, you will only be charged the prevalent VISA exchange rate
Exchange rates:
VISA exchange rate is the Forex rate charge by the VISA treasury.
Tip: When travelling I always check the rates on XE Currency app. Anything nearby is a good rate for exchange. Keep this also when exchanging cash in a foreign country
ATM withdrawals:
No ATM withdrawal charges by Niyo card but the bank ATM might have their fees
Don't worry. Just follow a simple process and you will not be paying any charges for ATM withdrawals. I did not pay a penny in all 16 countries that I used the card
Always withdraw from a bank ATM and never from a currency ATM
If you can't tell the difference just check the local bank of the country and withdraw cash from their ATMs
If the ATM asks for currency options to choose from do not withdraw cash from it
Always pay attention to the instructions on the ATM machine. In case the ATM charges a fee it displays on the screen
Choose current account when the option is given instead of savings account (Don't know logic but have managed to save money when choosing this over saving)
Dynamic Currency Conversion
This is a process by which MasterCard or VISA card transactions (online, offline, and ATM) are converted from the local currency to the currency of the card issuer’s country. Using DCC, merchants can charge additional markups on the base exchange rate, which usually means the customer pays a higher price for the purchased item. (As mentioned on goniyo.com)
You can avoid/reduce this charge is by selecting the local currency when making the transaction.
Tip: Always select local currency even when transacting with your credit card/debit card
Niyo Global Card mobile app
Instant transaction alerts
Each transaction has all the details. (Currency/ exchange rate/ any extra charges if any)
Transactions arranged category wise
Lock/Unlock facility
Pin reset
ATM locator
Transfer money back to your bank account
Bank statements
Customer support (Also available via Whatsapp chat)
Coming back to the constraints I faced with getting and using a forex card
Compulsory submission of passport copy with visa. Unable to procure card till visa arrival No need to wait for visa
Money needs to be transferred in the said currency when procuring the card. If multi-currency forex card then need to specify exact amounts No need to load specific currencies
Same day exchange rates apply to the whole amount when transferring the money on the card Dynamic exchange rates as per transaction
The service charge for availing the forex card Niyo global card if FREE
No paperless automated process to refill the same card forex card in the future. (It's a pain when travelling in foreign country) Do it yourself process for a refill
Just three or zero free ATM withdrawals. Depends on the card Unlimited free ATM withdrawals
Manual request to transfer remaining money on forex card to bank Do it yourself process for withdrawal