My wife and I (both Brits) have been with SCB for many years and have since 2009 had an SCB credit card.  When opening that account we were advised that there was a prerequisite - namely that we would have to deposit funds with the bank in a Fixed Deposit account, in value being equal to twice the amount of the credit card credit limit.  This in spite of the fact that we then had - and always have had - a substantial balance in our savings / ATM account with them, and a balance which far exceeded the requested credit card credit limit.

Moreover, we were advised that the Deposit account passbook would be held in the bank and we were only given a photocopy of the front page and opening deposit transaction.

Although not amused, we assumed then that this was standard practice in Thailand to limit the bank's exposure to credit card fraud.

Yes, we get (poor) quarterly interest but we have to go to the branch to get an updated photocopy of the accruing balance, not being able to see it online.  And on these occasions our passbook is dug out of what looks like a tupperware box containing quite a number of passbooks.  Clearly - or at least, presumably - other customers are subject to the same practice.

But is this standard banking practice here?  Is the practice restricted to farangs?  Or new credit card customers?  It irks me, frankly, especially since we have defaulted on balance repayments since 2009, but I would also understand if this was indeed global Thai policy & practice.   Thanks in advance for any thoughts and comments.  

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If you don't have a work permit it's certainly policy of most banks to request a deposit equivalent to the card credit limit. Whether it applies to Thais too I don't know.

 

The one exception I'm aware of is (or at least was) AmEx who would give a card to anyone who had an income (retirement ok).

 

I do have deposit-free cards but I have a WP and a decent local income, whether these cards will continue when I retire I know not.

The rules are whatever the bank has told you, and knowing the experience of others is not going to change that. Having said that, I have had an SCB credit card for about 17 years. I have never had to provide collateral at the outset or subsequently. I was working in Thailand at the time I obtained it.

 

I had almost an exactly identical situation and same experience as you with SCB for many years, and been a very good customer going back to 2005.

 

I got fed up with it about 6 months ago and got myself a credit card with Krungsri. They “only” require locked funds in an account with a value equal to 1.25 times the amount of the credit card credit limit. 

 

Okay, still ridiculous, but significantly better than SCB.