We live in a digital world where borders don’t mean much when it comes to finance. We are making international purchases every day, and sometimes without even acknowledging the fact that we are paying in a foreign currency.
The globalization of the world brought a new problem to the world of finance. That is a currency conversion.
At the moment there are 180 currencies, each following the country’s economy and monetary policy, which is why they move up and down in value. We still don’t have a global currency that everybody uses, apart from Bitcoin obviously, but until that happens, we have to exchange currencies in order to make international transactions.
But that’s not the issue. The issue lies in the finance management, which can be a nightmare for international payments and the costs that come with unfavorable exchange rates and fees.
This is where multicurrency banking cards were invented. These are cards that have the ability to hold and transact in multiple currencies, which changes the entire game.
Simplified Currency Management
One of the main benefits that come from multicurrency cards, like Genome card, is the ability to simplify currency management. At this point, we can all agree that paying in a foreign currency is a nightmare. You don’t understand the money, you don’t know the fees or the exchange rate, meaning you have no idea what you’ve paid.
But with multicurrency bank cards, all of these problems are gone. You can choose to pay in the local currency, and if it is not available, you will have the exchange rate and fees included with the conversion displayed with every purchase.
Let’s take a person that travels a lot. By using a multicurrency banking card for his international trips this travel enthusiast can load multiple currencies onto the card and switch between them in a few simple clicks, avoiding the need to carry bulky cash or incur high exchange fees.
Competitive Exchange Rates
Exchanging money through your local bank also comes with a lot of hidden fees. First of all, most people don’t know that traditional banks actually make money when you exchange a certain amount into a different currency.
How? Well, by providing you with unfavorable exchange rates. Meaning that they buy that money for cheaper and sell you at a higher exchange rate.
With multicurrency banking cards, you’ll usually get more competitive exchange rates and lower fees. After all, we are talking about a multicurrency account, where exchanging money is the entire idea. So, it is quite explainable why you’d get lower exchange fees and favorable rates to be honest.
Additionally, multicurrency accounts allow you to convert your funds 24/7. This feature isn’t available at most traditional bank accounts, and when it is, it is usually associated with higher fees than usual.
Seamless International Transactions
Another big advantage that comes with multicurrency banking cards is the ability to do seamless international transactions. There is nothing worse than going to a restaurant only to find out that your standard credit/debit card doesn’t work. Then you have to call the bank and go through some embarrassing moments just to pay the bill.
However multicurrency accounts are designed with international transactions in mind. Therefore, they are much more widely accepted, and the process of purchasing goods or services in a different currency is much easier and more understandable.
Enhanced Financial Control
Most multicurrency bank cards are associated with online platforms that give you deep analysis tools on your financial reports. With multicurrency bank cards, it is much easier to understand and calculate foreign currencies and stay on top of your finances.
Users can monitor and manage their multiple currency balances through online banking platforms or apps. This control allows you to take immediate action, helps you save money through real-time decision-making, and makes the entire process easier to manage.
Travel-Friendly Features
For frequent travelers, multicurrency banking cards offer a range of travel-friendly features. These may include travel insurance coverage, emergency assistance services, and access to airport lounges.
Additionally, some cards offer rewards programs that provide incentives such as airline miles or hotel discounts, further enhancing the travel experience for cardholders.
Currency Diversification Benefits
By using multicurrency banking cards, individuals and businesses can benefit from currency diversification strategies. We live in times when the world is still experiencing high inflation in some areas, and we’ve also seen some big currency fluctuations. So, you have to diversify your currency holdings in order to lower the risk of single-currency price fluctuations that might eat away your profits.
Holding funds in multiple currencies can mitigate exchange rate risks and offer opportunities for investment or savings in stronger or stable currencies. You can choose some of the most stable currencies in the world and diversify your portfolio.
That way, you don’t have to worry if a single currency drops in value.
Final Words
These are some of the benefits that come from multicurrency banking cards. They are perfect if you are sending or receiving money in different currencies, and will allow you to save a lot of money on transaction processing, exchange rates, and fees.
