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Know the Difference Between Forex Cards and Wire Transfers
Posted on Friday, November 17th, 2023 | By IndusInd Bank
Forex cards are a reliable way to carry foreign currency and make purchases on your international trips. They are independent of exchange rate fluctuations and can be loaded with multiple currencies for cashless transactions. On the other hand, wire transfers allow easy transfer of large amounts of funds across the world.
For an individual travelling abroad either for a brief visit or for an extended period, the availability of a safe and reliable way to carry and transfer foreign currency is crucial. When it comes to moving money across borders, two common ways frequently used are forex cards and wire transfers. Forex cards, also known as travel cards, offer a convenient means of transacting in a foreign currency at international destinations. In contrast, wire transfers are the traditional method of electronically transferring funds to a different country from one bank account to another.
If you are planning to travel abroad or send money internationally, read on to learn the key differences between carrying forex cards and conducting wire transfers for effective finance management.
What is a Forex Card?
A forex card is a prepaid debit card that can be loaded with one or multiple currencies. It can be used for making purchases and withdrawing cash at international locations. Forex cards offer a safe, convenient, and cashless way to carry foreign currency while travelling abroad.
Forex cards are issued by banks and widely accepted worldwide at various merchant locations and ATMs. One of the primary advantages of using a forex card is that it eliminates the need to carry cash and is more convenient than traveller’s cheques. For frequent travellers or those visiting more than one country on a trip, forex cards offer a great deal of convenience as you need not convert the money to different currencies frequently. For instance, IndusInd Bank’s Multicurrency Forex Card can be loaded with up to 14 currencies.
Forex cards often have more favourable exchange rates than other types of foreign currency payment methods. Additionally, the exchange rate remains unchanged when you load your forex card online, thereby protecting you from exchange rate fluctuations.
What is a Wire Transfer?
A wire transfer is a simple electronic transfer from one bank account to another. It is a popular and secure way of transferring large sums of money internationally. Wire transfers can be done in various ways, including offline transfers at a bank branch, online banking facilities, or foreign exchange dealers.
To initiate a wire transfer, you need to share the recipient’s name, bank account details, and SWIFT (Society for Worldwide Interbank Financial Telecommunication) code, along with the required documents, with your bank. The bank will forward a SWIFT message to the correspondent bank in the receiver’s country, and the funds will be credited in a few days.
Difference Between Forex Card and Wire Transfer
The table below highlights the key differences between a forex card and wire transfers-
| Difference | Forex Cards | Wire Transfer |
| Transaction Fee | Forex cards feature a minimal transaction fee compared to wire transfers. | Wire transfers typically feature a high transaction fee, which varies depending on the bank or foreign exchange dealer. |
| Exchange Rates | Forex cards protect you from exchange rate fluctuations and hefty currency conversion charges as the exchange rate gets locked when you load the card. | With wire transfers, you do not have the advantage of locking in the exchange rate. The exchange rate for transfer might be different than the real-time rate, which can result in loss of funds. |
| Security | In case your card is lost or stolen, you can immediately contact your bank to block and replace the card. | Wire transfers can be vulnerable to hacking and fraud, making them riskier than forex cards. |
| Access to Funds | You can buy a forex card online and load the desired foreign currency hassle-free. Plus, they eliminate the risk of carrying cash, and you can easily use your card to make purchases or withdraw funds abroad. | While wire transfers are considered reliable, the transfer can take up to several days. |
| Acceptability | Forex cards are widely accepted worldwide and can be used at various merchant locations and ATMs. | On the other hand, wire transfers might not be widely accepted at different locations, making it difficult to transfer funds. |
Apply for Indus Multicurrency Forex Cards
Enter the world of financial convenience with IndusInd Bank’s Multicurrency Forex Card. Widely accepted worldwide, the Indus Multicurrency Forex Card eliminates the hassle of carrying cash, waiting in line to purchase or exchange currency, or worrying about exchange rate fluctuations while travelling abroad.
Take a look at the key features of the Indus Multicurrency Forex Card –
- Load up to 14 currencies on a single card
- Protection against exchange rate fluctuations
- Get instant transaction alerts
- Load and reload your card multiple times
- Easy account tracking through the IndusInd Bank website.
Offering unmatched convenience and flexibility, the Indus Multicurrency Forex Card allows you to easily pay at merchant locations, shop online, or withdraw cash from ATMs at foreign locations. Visit the IndusInd Bank website to buy a forex card online.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
