If you are going abroad for study or a vacation, visiting someone in a foreign nation, or on a business trip, you will definitely need some cash with you to manage your personal expenses. Since USD is a currency accepted worldwide, I am referring to USD as cash in this article. It may not always be efficient to take cash, though with the obvious risk of losing it when you have your luggage to handle in a country where you are a foreigner.
So, what could be a better option to cash that is easy to handle and reliable? The easiest answer to this is the USD Prepaid card. It could be an excellent travel tool and an alternative to cash, especially if you are worried about losing your money in a foreign country.
What is a USD PREPAID card?
Prepaid cards are not linked to any bank account. Since it is prepaid, i.e., you pay a certain amount beforehand, which is then loaded on the card, and you can use the card later to pay for expenses. Unlike debit cards that are linked to bank accounts and you can only withdraw the amount available in your account, prepaid cards do not require a bank account and the prepaid amount you have loaded on the card is your limit.
Does this mean a prepaid card is similar to a credit card?
While both a credit card and a prepaid card offer their own advantages, it is easy to see that a prepaid card is not similar to a credit card. Unlike credit cards that require a fixed credit limit, prepaid cards have no pre-set spending limit. Credit cards are some form of loan that banks lend to you. There is a certain limit till which you can use it and a certain date till which you need to pay back the amount of credit you have utilized. If you do not pay on time, you will be charged a certain pre-defined rate of interest.
On the other hand, the amount loaded on prepaid cards is the limit that can be used anytime within the card’s expiry date. With plus points, you can reload any amount on prepaid cards.
Now, since the distinction between credit cards, debit cards, and prepaid cards is clear, understanding what USD PREPAID cards are is easier. In very simple words, the prepaid card on which USD can be loaded is the USD Prepaid card.
How can you make a USD prepaid card in Nepal?
As per the rules and regulations of Nepal Rastra Bank, in order to prepare a USD prepaid card, an individual must have:
- Original passport
- Original airline tickets and,
- VISA
Also Read : Prepaid E-Commerce USD Card for Nepalese
In the absence of any one of these documents, banks will not process your USD prepaid card request.
If you have all the documents required ready, it is child’s play from there on. All you have to do is: Take all the original documents to the nearest bank and request a USD prepaid card application form. Then, fill in all the details with the USD amount you want to load on the card and submit it along with the documents. (Depending upon banks, you may need or need not have a banking account with them to avail of this service.)
After verification of the documents and application, the bank will provide you with a prepaid card with USD loaded as per your request. That’s all you need to do to avail yourself of a prepaid card service.
The original passport, airline tickets, and VISA will be provided back by the bank after proper endorsement.
What is the validity of the card?
The USD prepaid card comes with the expiry date printed on it. You can use the limit until the card expires. After the card expires, you cannot use the expired card for future purchases and money withdrawals.
What if the card expires but the amount is still available?
Simply visit the bank you received the card from and submit a request to withdraw the available amount. You will receive the amount within a few days in your bank account (if you have one maintained in the bank) or through a manager’s cheque. Some banks may also ask you to open an account for a refund.
Can I reload USD on the prepaid card?
The answer is yes. If your USD prepaid card is valid, i.e., it has not expired, you can visit the bank (the one you initially received the card from) with your original passport, original airline tickets, and VISA.
What is the maximum and minimum amount of USD I can load on the prepaid card?
As per the rules and regulations of Nepal Rastra Bank, the present maximum USD load limit on the prepaid card is USD 1500/-
There is no limit to the minimum amount. You can load any amount you want to.
(Since banking regulations keep changing time and again, it is always a safe way to confirm the limitations with the banking staff, or you can simply check the website of Nepal Rastra Bank for the details.)
Cash seems so much easier than a USD prepaid card. So why would I bother?
As per present regulations, an individual can only exchange USD 200/-in cash against a passport facility. So, if USD 200/-seems okay for your expenses, then you can opt for cash. But if the 200/-limit seems way too low, you have no other option than to use a USD prepaid card.
(Since banking regulations keep changing time and again, it is always a safe way to confirm the limitations with the banking staff, or you can simply check the website of Nepal Rastra Bank for the details.)
Where can I use the USD prepaid card?
Anywhere in the world where USD is accepted.
I am going for foreign employment. What do I need to do for that? Can I avail of this service?
Of course, you can. All you will need is an original passport, airline tickets, and a VISA. But you can only load up to $200 USD. (Nepal Rastra Bank has set a limit of USD 200/-for individuals going abroad for employment.)
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