Traveling is an undeniably joyous experience but financially tiring as well. Managing finances so that we can do and get whatever we want while traveling is something we all are aware of. To manage the finances, we all try to do our best. Some stick to the traditional saving method and some take the help of loans or credit cards. This is pretty much desirable as well as exhausting because not even all these things can help you escape from the forex charges.
However, in the case of credit cards, things might be a little easier. If you are making a transaction outside your country, you will be charged a foreign currency markup fee.
Forex – Stands for Foreign Exchange.
This fee is charged whenever you make a transaction from one currency to another. This means every time you purchase with your card, you will be charged a percentage of the transacted value of that amount. This value is used as a forex charge.
These charges can make your expenses big just by adding bits of exchange fee on every transaction. This is a very costly expense.
Ways to avoid these Forex Charges and fees
Here are a few ways through which you can somehow avoid these fees and make your journey a real hassle-free one –
Prioritize Local Currency – Wherever you go, always prioritize the local currency over your own. If you pay for your expenses in local currency most of the time, you will be able to avoid a lot of Forex charges along the way. There can be many small vendors who will offer you to pay in your currency but by doing so it will make the transaction an international currency exchange which can cost you your money.
For example – When you pay the amount in your home currency rather than following the local currency, not only the conversion charges will kick in but the dynamic conversion currency markup will also get added which will increase the load of the amount to be paid.
Forex Cards – Forex Credit cards are very useful when you are a frequent traveler. These cards can also hold more than just one currency in themselves and can be used in all the currencies present in them. This makes the whole procedure very easy for many business people or people who travel from one to another. Although there are not many options available for Forex Credit Cards in India but the ones which are available, can help you save a lot.
Credit cards with low forex fees – This is one of the best options. Although you won’t be able to save a lot you will save a big chunk amount from your expenses here. Credit cards with low forex markup will not only provide you with the money to spend on your trip but will also allow you to avoid most of the unnecessary charges allotted.
For Example – HDFC Bank Regalia Credit Card comes with one of the lowest FYC Markup fees of 2% + Taxes, HDFC Bank Infinia Credit Card also has the lowest foreign currency markup fee which is 2% with taxes, etc. There are other cards with the lowest forex charges which can save you a great deal of money while traveling.
Travel rewards – These rewards are a value back on your every expense. There are credit cards that offer travel rewards such as points or miles. These rewards can be redeemed against a variety of options available with the partnered brands. Not only that but air miles can also be redeemed against flight bookings and hotel bookings as well.
Some traveling credit cards provide you with the benefit of traveling perks such as an AXIS Bank Reserve Credit Card which you can further redeem for hotel books. There can be free club memberships for a better and more comfortable travel experience.
You will have many options to save your forex fee and be able to continue your trip without thinking about the finances or any charges. The best possible ways through which you can save money on forex are already mentioned. But the safest is the cash and you can always use ATMs in case you do not have much cash in hand.
Foreign trips for your vacations seem like dreams come true but you won’t be able to be happy about this dream once the finance charges kick in. Therefore, it is very important to keep in mind that you will have to take care of every aspect of this however long or short it may be. The highest priority is the finances which will be greatly exhausted in any case. You can use different methods through which you will be able to make the expenses and save the money which can come up on your bill.
Forex is an important charge which almost every bank charges if any international transactions take place. These charges cannot be avoided completely but by focusing on certain aspects, these charges can be lowered down to a reasonable value. In the end, it all comes down to planning and thinking about how you want to manage your finances. Bon Voyage!