Various foreign currency bank cards have become the most useful tools for overseas travelers. However, the variety of foreign currency cards issued by card issuers is inevitably dazzling. So, how many foreign currency cards are there? How should I choose?
Foreign currency cards are divided into single currency cards and dual currency cards according to the amount of settlement currency.
A single-currency foreign currency card refers to a bank card whose deposits and credit lines are both in foreign currencies and should be repaid in foreign currencies. Because the use of this product has great limitations, it is only suitable for use abroad.
At present, the most commonly used bank card should be a dual-currency foreign currency bank card. Refers to a bank card with both RMB account and foreign currency account which can be used for deposits and credit lines. Dual-currency bank cards combine the functional characteristics of foreign currency cards and local currency cards, and two settlement currency accounts, RMB and another freely convertible currency, coexist in one bank card.
Divided into dual-currency debit card and dual-currency credit card according to overdraft limit.
Dual-currency debit card refers to the current settlement account with both RMB and designated foreign currency in the debit card, which can be used for global consumption and cash withdrawal. After you deposit a certain amount of RMB or USD in the card, you can spend or withdraw cash in RMB at any POS machine or ATM machine with the logo of "UnionPay" in China. In foreign countries, you can spend or withdraw cash in dollars at the special merchants of card issuers and ATMs with relevant signs.
Dual-currency credit card refers to a credit card that gives the cardholder a certain credit limit, within which the cardholder can spend first and then repay. For the consumption overdraft within the credit limit, the cardholder can repay all the money before the repayment date stipulated in the statement, and can enjoy an interest-free repayment period for a certain period of time. Dual-currency credit cards can be used in banks, domestic and foreign credit card organizations or special units and designated business outlets of international credit card companies. Settlement in RMB and designated foreign currency, with overdraft consumption, transfer settlement, cash deposit and withdrawal and other functions. Foreign currency bills generated by using dual-currency credit cards to pay foreign currency cash abroad can be repaid by purchasing foreign exchange in RMB, except for transactions prohibited by national laws.
Which one do you choose?
The advantage of dual-currency debit card is that the annual fee is low, and the deposit pays interest, but it cannot be overdrawn. The advantage of dual-currency credit card is that it can be overdrawn and the repayment method is flexible, but the annual fee is higher. So the choice should be based on needs. If you have foreign exchange deposits in your hand and only spend them abroad occasionally, you can use a debit card. If you often spend money abroad, it is more appropriate to choose a dual-currency credit card.
Foreign currency cards are classified by currency. The most common foreign currency cards in China are US dollar cards and Hong Kong dollar cards. Recently, Euro Card and Japanese Yen Card have been introduced.
Which one do you choose?
Judging from the international credit cards or dual-currency credit cards issued in the market at present, the dollar cards occupy the absolute mainstream. The biggest advantage of the dollar card is universal. As long as you hold a US dollar card, it is basically suitable for credit card consumption and cash advance in all foreign countries.
In countries and regions where the common currency is not the US dollar, such as Europe, the bookkeeping currency is the local currency, that is, the euro, which needs to be converted into US dollars at the time of settlement, and then converted into RMB at the time of repayment with RMB. This will increase the process of foreign exchange and bring certain exchange rate losses to cardholders. However, the bookkeeping currency and settlement currency of the euro card are both euros, which can be directly converted into RMB to reduce some exchange rate losses.
For credit cards that need to pay an annual fee for each card, applying for a US dollar card can save the annual fee. The annual fee for euro gold cards is 22 euros (about RMB 225), and that for ordinary cards is 12 euros (about RMB 123 yuan). If you only travel to Europe occasionally and spend about 20,000 yuan at a time, the money saved will be several hundred yuan, which is not much more than the annual fee, so there is no need to set up a special euro card. However, it is more cost-effective for business people and international students who frequently travel between Europe and China and spend a relatively high amount of money.