Forex Cards vs Cash for International Students
As a student in the "Exchange for Students" program or as an international student, it may be hard to figure out the exchange rate in your head. And the question of how much cash to take with you when you leave your Amber student housing has you wondering what the best way is to handle your money while studying abroad. A simple but valid Forex Card might solve these problems.
Now, we'll talk about why a Forex card is essential for international students and why it can be hard to use in some situations. So, let's get to the facts about the Forex card for international students right away.
What is a Foreign Exchange Card?
A Forex card is like a prepaid credit card that lets you put money on it in the local currency. Forex cards are often one of the easiest ways to pay, especially for students studying abroad or traveling worldwide.
With this magnetic stripe in your hand, you can quickly pay for things anywhere in the world without worrying about exchange rates or ATM cash withdrawal fees.
Major Advantages of Forex Cards
1. It's easy to pay without cash.
Cashless payments now also include digital ways to pay, like mobile wallets and Peer-to-Peer money transfers, in addition to credit and debit cards. Prepaid forex cards make it much easier to pay for things when you're traveling or studying abroad and don't have cash. A few decades ago, travelers' checks were the best way to bring much money with you. But it took a long time to get them, and you could only use them at a few places. And it wasn't uncommon for the exchange rate to differ in different areas.
2. Make sure your Forex cards are safe.
A forex card is the safest way for students to keep their money safe. It ensures that all your money is secure and you can access it whenever possible. There are many different kinds of prepaid forex cards that make it easier to deal with the complicated world of foreign exchange. Many banks and large travel companies offer these cards.
One can use most cards in more than 200 different countries. It also helps you pay for most of your costs as an international student. The One Currency Card has a long list of benefits that make life easier and give you more time to study.
Features of a Currency Card
- A chip and a PIN protect it.
- Cross-currency costs do not exist anywhere in the world.
- One can use it at 35,2 million places and 2.2 million MasterCard ATMs worldwide.
- The One Currency Card is not linked to your bank account, and you can get a new one for free if it gets lost or stolen.
- Anyone, anywhere in the world, can add money to it.
For the "exchange for students" program, it is easy to use a currency card. Students can carry cash out of the host country's currency or look for an ATM whenever they want to buy something. Some POS terminals that take debit and credit cards may also take forex cards. Because of this, they are straightforward to use when doing business. And since it's a card, it will fit nicely in your wallet instead of making it bulky as cash does. You can also quickly add money to the card without leaving your student housing if you use a smartphone app or your service provider's website.
One of the most important things for international students is the exchange rate. When they buy something, all international students figure out how much it will cost in their heads. Cardholders don't have to worry about the daily changes in exchange rates that happen on the market. The day's exchange rate determines how much cash can be put on the card. Make sure there is no chance of losing money when moving money from one day to the next. Forex cards for international students need to have the high exchange rates or fees that debit and credit cards do when you use a POS machine or an ATM to get cash in a foreign country.
Improved financial management
You can handle your money better with a Forex Card. You can keep track of your spending, payments, and exchange rates on the internet, and you will get a monthly statement for all the things you buy with your Forex card. When your semester abroad is over, you can immediately cash out any leftover foreign money to ensure it doesn't get used for something else.
Disadvantages of Forex Cards:
- Depending on your card, you may have to pay extra fees like activation fees, fees for using ATMs abroad, fees for not using your card, fees for getting your money back, etc. So, before you buy the card, please find out about its different costs.
- Cards might only be accepted as a form of payment in some places. Even in countries with much technology, stores and shops still prefer to deal in cash.
- Fees with forex cards include activation fees, fees for using ATMs abroad, not using the card, and redemption fees when the balance on the card is redeemed.
- Prepaid travel cards take a long time to add money.
- If the money on your credit card runs out, you can still move.
- They are only accepted in hotels abroad where only credit card information is allowed for security. Even in countries with much technology, some places may only take cash, not credit cards.
Cash is the default option. It is the easiest and most liquid way to pay. But the currency is hard to understand and use. You must carry various currencies if you are traveling to multiple countries. Having much cash is complicated, and you must be very careful. You can't get it back if you lose it or it gets stolen. Carry some cash for convenience and emergencies, but only carry some of your foreign currency in cash.
Why cash is better than a forex card for students
When we get the money, we can use it exactly as it is. There are no extra costs for using foreign currency. Cash is a way to pay that is accepted all over the world. Each country has its money, which is the only difference. Useful in places like restaurants abroad where cash tips are the norm.
The bad things about cash
- The exchange rates for putting money directly into a foreign currency are less reasonable than those for forex cards.
- Money is safe no matter where we put it. How carefully we handle, it will make all the difference. Also, criminals overseas look for travelers with much extra cash.
- If someone steals your cash, you cannot get your money back. It is one of the most critical problems with cash.
- Travelers should avoid carrying cash in different currencies, make sure they are clear, and choose the correct currency.
So to conclude, The best way to bring money abroad is to get different kinds of travel money. Forex card for 60% of total spending, cash for 40%, and credit and debit cards as backup.