When travelling abroad or making purchases from international websites, one often encounters forex charges—fees that banks or credit card companies impose for currency conversion. These fees can add up, making transactions more expensive than anticipated. Fortunately, there are several ways to avoid or minimise these charges. This article provides simple and practical strategies to help you save money on international transactions.
What Are Forex Charges?
Forex charges, also known as foreign transaction fees, are costs added to your bill when you make purchases in a foreign currency. These can range from 1% to 3% of the transaction amount, depending on your card issuer and bank.
Strategies to Avoid Forex Charges
Use a Forex Card
A forex card, also known as a travel card, is a prepaid card loaded with foreign currency. Using a Forex card for international transactions can help you avoid Forex charges. Simply load the card with the currency you need before travelling.
Benefits:
- Fixed exchange rates at the time of loading.
- No foreign transaction fees.
- Easy to use at ATMs and POS terminals abroad.
Opt for Credit Cards with No Foreign Transaction Fees
Some credit cards are specifically designed for international use and do not charge foreign transaction fees. Research and apply for a card that offers this benefit.
Advantages:
- No extra charges on purchases abroad.
- Access to rewards and benefits specific to travel.
Airtel Axis Bank Credit Cards: The Airtel Axis Bank Credit Card comes with attractive travel benefits. These cards often have low foreign transaction fees, making them a good option for frequent travellers.
Also Read: Learn About Credit Card Charges on International Transactions
Choose the Local Currency Option
When using your card abroad, you might be given a choice between paying in the local currency or your home currency. Always choose the local currency to avoid dynamic currency conversion (DCC) fees, which can be higher than standard forex charges.
Withdraw Larger Amounts
If you need cash, withdraw larger amounts from ATMs to minimise the number of transactions and associated fees. Be mindful of ATM fees, which can also add up.
Use Online Banks with No Forex Fees
Some online banks offer cards with no foreign transaction fees. These banks often have lower overhead costs and pass the savings on to customers.
Conclusion
Avoiding forex charges on international transactions can lead to significant savings. If you go with using forex cards, choosing credit cards with no foreign transaction fees, opting for local currency payments, withdrawing larger amounts at ATMs, and exploring online banks, you can minimise or eliminate these fees. Airtel credit cards, with their travel-friendly features, are also a great option for frequent travellers.
Also Read: Difference Between Forex Card Vs Credit Card
FAQs
1. What is a forex card?
A forex card is a prepaid card loaded with foreign currency, used to make payments and withdraw cash abroad without incurring forex charges.
2. How do I know if my credit card has foreign transaction fees?
Check your card’s terms and conditions or contact your card issuer to confirm if your card charges foreign transaction fees.
3. Are Airtel credit cards good for international travel?
Yes, Airtel credit cards often have low foreign transaction fees and offer additional travel benefits.
4. What is dynamic currency conversion (DCC)?
DCC is a service where the merchant offers to convert the transaction amount into your home currency. This usually comes with high fees. Always choose to pay in the local currency to avoid these extra charges.
5. Can I avoid ATM fees when travelling?
Yes, by withdrawing larger amounts less frequently, you can minimise ATM fees. Some banks and cards also offer fee reimbursem*nts for international ATM withdrawals.
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