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Business trips and holiday trips involve the use of money from other countries, thus involving dealing with foreign currency. Forex cards are one of the easiest methods to use in managing these transactions. Forex cards are Visa cards that are loaded with foreign currency and can be used just like a debit or credit card. This is why they have several advantages; for example, the exchange rates are generally more appreciable, secure, and simpler. However, when it comes to spending your forex card for some specific activities like hotel bookings and car rentals, certain measures need to be taken that will help you spend your forex card without any hindrances. In the subsequent posts of this blog, I will clarify these practices to guide you on how you can make the best use of your forex card. foreign exchange card While on tour.
What is a Forex Card?
A forex card is a type of prepaid card that allows you to purchase foreign currency before traveling. When traveling to another country, you can use it just like you would a debit card to make purchases, book accommodations and even pay for your meals, as well as withdraw cash from ATMs.
The first advantage of using a forex card is that when money is loaded onto the card, the currency exchange rate remains unchanged despite frequent changes in general rates. The facility of keeping a PIN and blocking it in case of theft or loss makes it much safer than using cash.
Ways to use your Forex Card for Hotel Bookings
Using your forex card to book a hotel is often easy, yet there are a few factors that must be considered to ensure the process goes smoothly.
- Check the hotel’s policy on foreign exchange:
Check the eligibility of the hotel before booking and see if it accepts currency cards. Most hotels do, but it is always wise to confirm with the hotel in the foreign country. Always find out, during booking, if the hotel will require your credit card in case of other bookings or perhaps for security purposes. - Card Pre-Authorization & Hold:
It is common for hotels to hold or pre-authorize funds charged to a credit card at check-in. This is done to cover incidental expenses such as room service, minibar, or potential damages caused by guests.Here are a few things to keep in mind about pre-authorization:
- Effect on Available Balance:
A pre-authorization hold will be placed on the available balance on your FX card. Make sure you set aside enough funds for the hold in addition to the actual expenses. - Hold Period:
Even if there are no additional charges, the card may remain on hold for several days after you leave the hotel. - Release from ban:
This pre-authorization hold will be refunded to you by the hotel after your stay and after you have paid all your bills. The money should appear on your card within a few days, but it may take a little longer. You can also request the hotel to unblock the amount when you check out to make the process smoother.
3.Do not use DCC or dynamic currency conversion:
Many hotels and shops offer an option called Dynamic Currency Conversion (DCC), whereby an agreement with the bank allows one to pay in their home country’s currency. This may seem very effective but there are always hidden charges and of course a higher exchange rate has to be paid.
It is advisable that you always process your payments via forex card in the domestic currency of the country you are in. This way, you will avoid paying extra amounts that are caused by changes in exchange rates as they will be charged when you recharge your card.
4. Track your transaction history:
Another important thing is that it is wise to keep a record of all the transactions made using the FX card, especially when making hotel bookings. Most forex cards come with an application for your mobile phone or have a web-based interface where you can track your balance, your transactions, and even your spending patterns.
This is the right time to ensure that all the costs mentioned in your transaction are correct. In case of any discrepancy in the statement, you should immediately contact your card issuer.
Top techniques for using your forex card to pay for your rental cars
Another widely used application of forex cards is renting a car using the said card, but there are a few points that must be considered.
- Identify the car rental company’s policies:
Some establishments, such as some automobile rental businesses, may not accept foreign currency cards for payment or deposits as some hotels do. While most foreign rental companies do, it is better not to rely on it but verify every time. If your strategy is to use your currency card to meet the rental fee, some organizations may specifically require a credit card as a security deposit. - Consider the security deposit carefully:
In the case of security deposits, most of the time, the car rental company will hold money on your card. This is done to settle any additional fines, gasoline costs or any other damages that may occur. There are two factors that govern the deposit: the type of automobile, the rental period, and the rental business.
a. Make sure there is sufficient balance:
Also, assure yourself that you have enough money on your forex card to cover the security deposit as well as the cost of the car rental. If the hold amount exceeds your available balance, the transaction may be declined, adding a high foreign transaction fee.
b. Release of Deposits:
When no other fees can be paid for the service, the deposit is typically released several days after the vehicle is returned. As with hotel pre-authorizations, it is also wise to ask the rental business how long the hold will last.
3. Get yourself a full tank of fuel:
Two common services that many car rental companies provide include pre-purchased petrol or refueling the car before returning it. However, these services often incur a fixed fee, which, as a rule, is significantly higher than the cost of regular services. Pay for the fuel using your currency card and refuel the car yourself to avoid paying extra money to wash it before returning it.
4. Maintain records and acknowledgements:
The customer should always ensure that he keeps copies of the rental agreement, receipts and other such documents given with the vehicle rental. This is especially important in case of disagreement over the fees charged to the organisation for the services provided. The evidence can work in your favour when you argue with the rental business or your forex card company about the extent of any costs or damages that you do not accept.
Summary
An easy and inexpensive way to manage your travel expenses is to pay with a forex card for hotel and rental car bookings. By following the methods outlined in this article, you can ensure that your transactions are smooth, secure, and cost-free. A little planning and information can really reduce stress and make your trip more enjoyable.
Disclaimer: This article is a paid publication and does not have the journalistic/editorial involvement of Hindustan Times. Hindustan Times does not endorse/subscribe to the content of the article/advertisement and/or the views expressed herein. Hindustan Times shall in no way be responsible and/or liable for all that is stated in the article and/or the views, opinions, declarations, announcements, endorsements etc. expressed therein.
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