Business

How Forex Cards Can Impact Your International Travel Expenses: A Comprehensive Guide

(CTN News) – International travel is an exciting experience that allows us to explore new cultures, cuisines, and destinations. However, being aware of the financial aspects of traveling abroad is important.

One such aspect is forex cards, which have gained popularity among travelers for convenience and security.

This article will delve into how forex cards can make your international travel costlier now, shedding light on recent changes, increased costs, exchange rates, and inflation.

We will also provide useful tips to help you reduce expenses and explore alternative payment methods. So, let’s dive in!

What are Forex Cards?

Forex cards, also known as travel cards or prepaid cards, are preloaded cards that allow you to carry multiple currencies while traveling internationally. They are similar to debit or credit cards but are specifically designed for foreign currency transactions.

Forex cards offer the convenience of making cashless transactions, provide security, and protect you from fluctuating exchange rates. They can be used for various purposes, including shopping, dining, and withdrawing cash from ATMs.

Recent Changes Impacting Forex Cards

In recent times, several changes have impacted the cost of using Forex cards for international travel. These changes include the introduction of new regulations or fees, an increase in exchange rates, and the influence of inflation and economic factors. It’s crucial to stay informed about these changes to effectively manage your travel expenses.

Increased Costs Associated with Forex Cards

One significant aspect to consider is the increased costs associated with Forex cards. While they offer convenience, some certain fees can make your international travel costlier than anticipated. Here are some factors contributing to the increased expenses:

Higher fees and charges: Forex cards often come with various fees, such as issuance fees, reload fees, and inactivity fees. These costs can add up and affect your overall travel budget.
Hidden conversion fees: When you use a Forex card for transactions in a currency different from the one loaded on the card, hidden conversion fees may be involved. These fees are often not transparently disclosed, resulting in additional expenses.
ATM withdrawal charges: While forex cards offer the convenience of withdrawing cash from ATMs abroad, there are typically charges associated with these transactions. These fees can vary depending on the card provider and the ATM network.
Dynamic currency conversion: Dynamic currency conversion is a service offered at some merchants or ATMs where you can pay in your home currency instead of the local currency. However, this convenience comes at a cost, as the exchange rate offered in dynamic currency conversion is typically less favorable than the interbank exchange rate.

Exchange Rates and Their Impact

Exchange rates are crucial in determining the cost of using forex cards for international travel. Fluctuations in exchange rates can significantly impact your expenses. Here’s how:

Fluctuations in exchange rates: Exchange rates constantly change due to various economic and political factors. These fluctuations can result in gains or losses when you convert one currency to another, affecting the purchasing power of your Forex card.
Impact on overall travel expenses: If the exchange rate of your home currency weakens against the currency of your travel destination, it means you will receive fewer units of the foreign currency for the same amount of your home currency. This can make your travel expenses more expensive.
Strategies to mitigate exchange rate risks: To minimize the impact of exchange rate fluctuations, you can consider strategies like hedging, locking in a favorable exchange rate in advance or using limit orders to execute currency conversions at a specific rate.

Inflation and Its Influence on Travel Expenses

Inflation, both in your home country and the destination country, can affect the cost of international travel. Here’s how inflation can impact your expenses:

How inflation affects currency values: Inflation erodes the purchasing power of a currency over time. If the destination country experiences high inflation rates, the value of their currency may decrease, making goods and services more expensive for travelers.
Rising costs of goods and services abroad: Inflation can increase prices for accommodation, transportation, food, and other travel-related expenses. It’s essential to factor in the potential impact of inflation when budgeting for your international trip.
Planning and budgeting for inflation: Research the inflation rates of your destination country and consider setting aside additional funds to account for potential price increases during your travel period. This proactive approach can help you manage your expenses more effectively.

Tips for Reducing Costs While Using Forex Cards

Although forex cards can come with increased costs, there are several strategies you can employ to minimize expenses:

Compare different forex card providers: Before choosing a forex card, compare the fees, charges, exchange rates, and additional benefits offered by different providers. Look for cards that offer competitive rates and low or no fees.
Look for low or no fees options: Some forex card providers offer cards with reduced or waived fees for certain transactions or for specific usage thresholds. Opting for such cards can help you save money.
Use local currency for transactions: When using your forex card for payments or withdrawals, choose the local currency instead of opting for dynamic currency conversion. This way, you can avoid the additional fees and unfavorable exchange rates associated with dynamic currency conversion.
Monitor exchange rates and plan ahead: Keep an eye on the exchange rates leading up to your travel dates. If you notice a favorable rate, consider loading your forex card in advance to lock in a better exchange rate.

Alternative Payment Methods

While forex cards have been a popular choice for international travel, it’s worth considering alternative payment methods that may offer better cost-saving opportunities. Here are a few options to explore:

Credit cards: Certain credit cards offer benefits such as no foreign transaction fees or favorable exchange rates. Research and choose a credit card that aligns with your travel needs and has advantageous terms for international transactions.
Debit cards: Some debit cards have partnerships with international banks or ATM networks that provide reduced or waived withdrawal fees. Check with your bank to see if they offer any such options for international travel.
Cash: Carrying a small amount of cash in the local currency can be useful, especially for small purchases or places where cards may not be accepted. However, exercise caution and ensure the safety of your cash while traveling.
Prepaid travel cards: Prepaid travel cards are an alternative to forex cards. These cards allow you to load multiple currencies, similar to forex cards but may have different fee structures. Research and compare the options available to find the most cost-effective solution.

Importance of Research and Preparation

To make informed decisions and minimize costs during your international travel, thorough research and preparation are essential. Here are some key considerations:

Researching destination-specific fees: Different countries may have varying regulations and charges related to forex cards and other payment methods. Familiarize yourself with the specific fees applicable to your destination.
Understanding local currency and exchange rates: Understand the local currency’s value and recent exchange rate trends. This knowledge will help you make informed decisions when converting currencies.
Planning and budgeting for international travel: Create a detailed budget for your trip, considering all potential expenses, including accommodation, transportation, food, activities, and currency conversion charges. Allow for flexibility to accommodate unforeseen costs.

Conclusion

While forex cards provide convenience and security for international travel, recent changes and increased costs have made it important for travelers to be aware of their potential impact on expenses. Understanding the fees, charges, exchange rates, and inflation can help you manage your finances more effectively. By researching alternative payment methods and implementing cost-saving strategies, you can reduce the overall expenses associated with forex cards and make your international travel more affordable.

Business

PepsiCo Reduces Revenue Projections As North American Snacks And Key International Markets Underperform.

(VOR News) – In the third quarter of this year, Pepsi’s net income was $2.93 billion, which is equivalent to $2.13 per share. This was attributed to the company.

This is in stark contrast to net income of $3.09 billion, which is equivalent to $2.24 per share, during the same period in the previous year. The company’s earnings per share were $2.31 when expenses were excluded.

Net sales decreased by 0.6%, totaling $23.32 billion. Organic sales increased by 1.3% during the quarter when the effects of acquisitions, divestitures, and currency changes are excluded.

Pepsi’s beverage sales fell this quarter.

The most recent report indicates that the beverage and food sectors of the organization experienced a 2% decline in volume. Consumers of all income levels are demonstrating a change in their purchasing habits, as indicated by CEOs’ statements from the previous quarter.

Pepsi’s entire volume was adversely affected by the lackluster demand they encountered in North America. An increasing number of Americans are becoming more frugal, reducing the number of snacks they ingest, and reducing the number of times they purchase at convenience stores.

Furthermore, Laguarta observed that the increase in sales was partially attributed to the election that occurred in Mexico during the month of June.

The most significant decrease in volume was experienced by Quaker Foods North America, which was 13%. In December, the company announced its initial recall in response to a potential salmonella infection.

Due to the probability of an illness, the recall was extended in January. Pepsi officially closed a plant that was implicated in the recalls in June, despite the fact that manufacturing had already been halted.

Jamie Caulfield, the Chief Financial Officer of Pepsi and Laguarta, has indicated that the recalls are beginning to have a lessening effect.

Frito-Lay experienced a 1.5% decline in volume in North America. The company has been striving to improve the value it offers to consumers and the accessibility of its snack line, which includes SunChips, Cheetos, and Stacy’s pita chips, in the retail establishments where it is sold.

Despite the fact that the category as a whole has slowed down in comparison to the results of previous years, the level of activity within the division is progressively increasing.

Pepsi executives issued a statement in which they stated that “Salty and savory snacks have underperformed year-to-date after outperforming packaged food categories in previous years.”

Pepsi will spend more on Doritos and Tostitos in the fall and winter before football season.

The company is currently promoting incentive packets for Tostitos and Ruffles, which contain twenty percent more chips than the standard package.

Pepsi is expanding its product line in order to more effectively target individuals who are health-conscious. The business announced its intention to acquire Siete Foods for a total of $1.2 billion approximately one week ago. The restaurant serves Mexican-American cuisine, which is typically modified to meet the dietary needs of a diverse clientele.

The beverage segment of Pepsi in North America experienced a three percent decrease in volume. Despite the fact that the demand for energy drinks, such as Pepsi’s Rockstar, has decreased as a result of consumers visiting convenience stores, the sales of well-known brands such as Gatorade and Pepsi have seen an increase throughout the quarter.

Laguarta expressed his opinion to the analysts during the company’s conference call, asserting, “I am of the opinion that it is a component of the economic cycle that we are currently experiencing, and that it will reverse itself in the future, once consumers feel better.”

Additionally, it has been noted that the food and beverage markets of South Asia, the Middle East, Latin America, and Africa have experienced a decline in sales volume. The company cut its forecast for organic revenue for the entire year on Tuesday due to the business’s second consecutive quarter of lower-than-anticipated sales.

The company’s performance during the quarter was adversely affected by the Quaker Foods North America recalls, the decrease in demand in the United States, and the interruptions that occurred in specific international markets, as per the statements made by Chief Executive Officer Ramon Laguarta.

Pepsi has revised its forecast for organic sales in 2024, shifting from a 4% growth rate to a low single-digit growth rate. The company reiterated its expectation that the core constant currency profitability per share will increase by a minimum of 8% in comparison to the previous year.

The company’s shares declined by less than one percent during premarket trading. The following discrepancies between the company’s report and the projections of Wall Street were identified by LSEG in a survey of analysts:

SOURCE: CNBC

Business

Old National Bank And Infosys Broaden Their Strategic Partnership.

(VOR News) – Old National Bank, a commercial bank with its headquarters in the Midwest, and Infosys, a firm that specializes in information technology, have recently entered into a strategic expansion of their link, which has been in place for the past four years.

This expansion is more likely to take place sooner rather than later, with the likelihood being higher.

For the purpose of making it possible for Old National Bank to make use of the services, solutions, and platforms that are offered by Infosys, the objective of this expansion is to make it possible for the bank to transform its operations and processes through the application of automation and GenAI, as well as to change significant business areas.

This lets the bank leverage Infosys’ services, solutions, and platforms.

Old National Bank Chairman and CEO Jim Ryan said, “At Old National, we are committed to creating exceptional experiences for both our customers and our fellow employees.”

This statement is applicable to Old National Bank. Infosys is carefully managing the business process innovations that it is putting us through, putting a strong emphasis on efficiency and value growth throughout the process to ensure that it is carried out efficiently.

This is a routine occurrence throughout the entire operation. Because of Infosys’ dedication to our development and success, we are incredibly appreciative of the assistance they have provided.

Old National has been receiving assistance from Infosys in the process of updating its digital environment since the year 2020, according to the aforementioned company.

Ever since that time, the company has been providing assistance. The provision of this assistance has been accomplished through the utilization of a model that is not only powerful but also capable of functioning on its own power.

Infosys currently ranks Old National thirty-first out of the top thirty US banks.

This ranking is based on the fact that Old National is the nation’s largest banking corporation.

It is estimated that the total value of the company’s assets is approximately fifty-three billion dollars, while the assets that are currently being managed by the organization are valued at thirty billion dollars.

Dennis Gada, the Executive Vice President and Global Head of Banking and Financial Services, stated that “Old National Bank and Infosys possess a robust cultural and strategic alignment in the development, management, and enhancement of enterprise-scale solutions to transform the bank’s operations and facilitate growth.”

This remark referenced the exceptional cultural and strategic synergy between the two organizations. Dennis Gada is the one who asserted this claim. This was articulated explicitly concerning the exceptional cultural congruence and strategy alignment of the two organizations.

We are pleased to announce that the implementation of Infosys Topaz will substantially expedite the transformation of Old National Bank’s business processes and customer service protocols. We are exceedingly enthusiastic about this matter. We are quite thrilled about this specific component of the scenario.

Medium-sized banks operating regionally will continue to benefit from our substantial expertise in the sector, technology, and operations. This specific market segment of Infosys will persist in benefiting from our extensive experience. This phenomenon will enable this market sector to sustain substantial growth and efficiency benefits.

SOURCE: THBL

Business

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

The largest regulated water and wastewater utility company in the United States stated Monday that it had been the target of a cyberattack, forcing the company to halt invoicing to consumers.

American Water, The Largest Water Utility In US, Is Targeted By A Cyberattack

American Water, based in New Jersey and serving over 14 million people in 14 states and 18 military facilities, said it learned of the unauthorized activity on Thursday and quickly took precautions, including shutting down certain systems. The business does not believe the attack had an impact on its facilities or operations and said employees were working “around the clock” to determine the origin and scale of the attack.

water

The corporation stated that it has alerted legal enforcement and is cooperating with them. It also stated that consumers will not be charged late fees while its systems are unavailable.

According to their website, American Water operates over 500 water and wastewater systems in around 1,700 communities across California, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Tennessee, Virginia, and West Virginia.

SOURCE | AP