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Shanthi Venkataraman

FOR a frequent traveller, there is always the hassle of handling foreign currency and travellers cheques.

While an international credit card provides the convenience of plastic, the bill creeps up on you before you know it and it's all in dollars! You do have an alternative, though, in the form of travel debit cards such as HDFC's Forexplus.

You can also check out ICICI Bank's Travel Card and SBI Vishwa Yatra Foreign Travel Card, which offer similar features.

How Forexplus works

Forexplus is a pre-paid debit card that is available in dollar and euro currencies. You merely have to load the card with the money you require.

In applying for the card, you would have to mention your reason for travel, so that the bank can confirm that the amount you load onto your card conforms with the basic travel quota you are permitted for.

The minimum load value is $500 or 400 euro. The maximum load is $10,000 in line with that prescribed by the RBI.

If you are travelling to a country where these currencies are not in use, you can still purchase the card.

The bank automatically converts the amount loaded on your card to the relevant currency at prevailing market rates.

Once loaded, the card can be used for all transactions except for making deposits on hotels, car rentals and so on. You can withdraw cash from Visa ATMs at $2 or 1.50 euro per transaction. There are, however, daily limits on the card; $1,000 at Visa Point of Sale terminals and $2,000 at ATMs.

Should you run out of money while still overseas, you can re-load the card by issuing a cheque.

The re-load charge is Rs 100. If you are a corporate traveller or a student studying abroad, you can even have someone else re-load the card for you by providing the necessary documents. The minimum re-load value is $250 or 200 euro.

The card is valid for two years. On return, you can choose to either retain the card or have the balance converted and refunded, should you get a favourable rate.

Suitability

According to the Foreign Exchange Management Act (FEMA) regulations, you are allowed to carry only up to $2000 in cash and the rest in travellers cheques and Indian currency.

Losing travellers cheques or searching for a moneychanger during an emergency is every tourist's nightmare. The card can come in handy in such situations.

Also, you will be required to surrender unspent foreign exchange currency notes and travellers cheques in excess of $2,000 within 90 days and 180 days respectively, from the date of return.

Alternatively, you can credit the money to a Resident Foreign Currency Account. But you normally are required to maintain a minimum balance in this account. Against this, the card promises to be a better alternative, as you are allowed to retain it without any restrictions.

The card can be conveniently used in other countries as well.

As currencies are converted at prevailing market rates, Forexplus has an advantage over other travel cards that charge an extra commission for conversion to another currency.

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