Because RMB is not a freely convertible currency, card issuers use a freely convertible currency, that is, an internationally accepted currency, as the settlement currency for their international cards, thereby achieving the purpose of issuing internationally accepted bank cards. This is So called foreign currency card.

Various foreign currency bank cards have become the most useful tools for people going abroad. However, the wide variety of foreign currency cards issued by various card issuers is inevitably a bit confusing. So, how many types of foreign currency cards are there? How should we choose?

Foreign currency cards are divided into single-currency cards and dual-currency cards according to the amount of settlement currency

Single-currency foreign currency cards refer to deposits and credit limits in foreign currency, and should be in foreign currency Repayment by bank card. Because the use of this product has relatively large limitations, it is only suitable for use abroad.

At present, the most commonly used one should be the dual-currency foreign currency bank card. It refers to a bank card with both RMB and foreign currency accounts for deposits and credit lines. The dual-currency bank card combines the functional features of a foreign currency card and a local currency card, coexisting two settlement currency accounts in RMB and another freely convertible currency in one bank card.

Dual-currency debit cards and dual-currency credit cards are divided into dual-currency debit cards and dual-currency credit cards according to whether they can be overdrafted

Dual-currency debit cards refer to a debit card that contains both RMB and designated foreign currencies. Settlement account allows you to spend and withdraw cash around the world. After you pre-deposit a certain amount of RMB or US dollars in the card, you can spend or withdraw cash in RMB as the settlement currency at any POS machine or ATM with the "UnionPay" logo in China; abroad, you can use RMB as the settlement currency at any POS machine or ATM with the "UnionPay" logo; abroad, you can use the card issuer to make purchases or withdraw cash. U.S. dollars are used as the settlement currency for purchases or cash withdrawals at merchants and ATMs with relevant logos.

Dual-currency credit card refers to a credit card that gives the cardholder a certain credit limit, and the cardholder can consume within the credit limit first and then repay the credit card. For consumption overdrafts within the credit limit, cardholders can enjoy a certain interest-free repayment period if they repay the entire amount before the repayment date stipulated in the statement. Dual-currency credit cards can be used at designated institutions and bank designated business outlets, domestic and foreign credit card organizations or international credit card company acceptance points. Settled in RMB and a designated foreign currency, it has functions such as overdraft consumption, transfer settlement, cash deposits and withdrawals, etc. Foreign currency bills incurred when using a dual-currency credit card to pay foreign currency cash overseas can be repaid using RMB to purchase foreign exchange, except for transactions prohibited by national laws.

Which one to choose?

The advantages of dual-currency debit cards are low annual fees and interest on deposits, but overdraft is not allowed. The advantages of dual-currency credit cards are that they can be overdrafted and have flexible repayment methods, but the annual fee is higher. So which one you choose should be based on your needs. If you have foreign exchange deposits and only occasionally spend abroad, a debit card will be enough; if you often spend abroad, a dual-currency credit card is more appropriate.

Foreign currency cards are divided according to currency. The most common foreign currency cards in China are US dollar cards and Hong Kong dollar cards. Recently, euro cards and Japanese yen cards have been launched.

Which one to choose?

Judging from the international credit cards or dual-currency credit cards currently issued on the market, US dollar cards are absolutely mainstream. The biggest advantage of a US dollar card is that it is universally applicable. As long as you hold a US dollar card, it is basically applicable to all overseas countries for card consumption and cash advances.

However, when a U.S. dollar card is used in countries and regions where the common currency is not the U.S. dollar, such as Europe, the accounting currency is the local currency, which is the euro. During settlement, the euro needs to be converted into U.S. dollars and the payment is made in RMB. When making the payment, the U.S. dollars will be converted into RMB. This adds a foreign exchange conversion process, which will bring certain exchange rate losses to the cardholder. When using a Euro card, both the billing currency and the settlement currency are Euros, which can be directly converted into RMB, thus reducing some exchange rate losses.

For credit cards that require an annual fee for each card, you can save on annual fees by applying for a U.S. dollar card. The annual fee for a Euro Gold Card is 22 euros (about 225 yuan), and the regular card also costs 12 euros (about 123 yuan).

If you only travel to Europe occasionally and spend about 20,000 yuan at a time, the money saved is only a few hundred yuan, not much more than the annual fee, so there is no need to apply for a Euro card. But for business people and students studying abroad who frequently travel between Europe and China and spend relatively high amounts of money, it is more cost-effective to use a Euro card.