We have examined such subjects as money transfer channels, and today I would like to focus on the fx card.  Just what is this and what can it do for you and I?  Is it trustworthy and will I save money in the use of this?  To start off with, let us concentrate on the main features.  It looks like a credit card – it has aspects such as the magnetic strip, the signature, the Chip and PIN function and it even bears your name on the front.  As with a credit card, it will also carry the emblem of one of the main credit card providers eg Maestro.  But while a normal credit card will give the inividual access to a line of credit, and while a debit card will allow for a lending facility, the fx card will only give the user the possibility to spend what he or she has put onto the card.  So, in essence: it is a “pre-pay” card, where the user “loads” their own cash on to the card, and can then spend this.  Once the funds are used up, it is up to the individual to re-load the card. 

But wait a second – what’s the point of that?  Most have a credit card.  Why should I get an fx card and just load it with my money?  Well there is something interesting to fx cards – and that is their unique benefits.  To begin with, it is in the name – fx – which stands for foreign exchange.  The rate of exchange you have access to on an fx card is far superior to the one you will have on your usual payment card.  Every time you go to buy something overseas, you are being charged a “transaction fee” – and then add to that the cash withdrawal fee.  All these may be applicable to your fx card as well – but they will be much better value for money.  They will be tailored to suit someone who is on a trip and needs to use funds in the cheapest way.  Many of us have been overseas and withdrawn money using our regular cards.  There will be a fee which cuts out a chunk of your money, and then the forex rate will sting you.  On an fx card, you’ll save more money.

Additionally there are other ways of conducting currency exchange – you can carry it out in the foreign land you are visiting by going to a retail bank – but again you may find the exchange rate is really not in your favour at all.  You can also purchase travellers cheques – but increasingly fewer countries allow exchange services on these, and the commission rates can also be a negative.  Not only that, but travellers cheques are a pain!  An fx card is little, fits into your wallet and you can have a new one if you lose it or it becomes stolen.  The company will also be able to see your sales, so any unspent funds left on the card will still be yours. 

Travel Insurance