Credit or Debit Card with Low Foreign Exchange Fees

[JoshBe]

I regularly have to send some money from Thailand back to Germany (I know it's usually the other way round) to support a family member. I'm not sure if there's a cheaper way to do that, but so far I have been using an app called Revolut. I use my SCB MasterCard debit card to top up the Revolut account and then send the money directly to my family member's bank account.

 

The problem is that I'm losing a little more than 4% every time I convert from THB to EUR compared to the mid market exchange rate. Apparently Revolut isn't taking any cut so I guess these 4% are some kind of foreign transaction fee levied by the bank.

 

I'm wondering if there are any debit or credit cards available here that have a low or no foreign transaction fees? I've been browsing through the websites of various Thai banks but the information provided in English is incomplete at best. I'm also interested in cards that have some sort of cashback or point system which could compensate for the money I lose because of the transaction fee.

Edited January 21, 2018 by JoshBe

[KneeDeep]

In fact Revolut do charge. 

 

Are you loading up with Thai Baht and changing that within the App to Euros?

 

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What currency should I top up my account in?

 

The rule is that you should top up in the currency that your bank account is held in. For example, if you have a UK bank account make sure you top up in GBP. If you don't your bank will convert the money for you and charge a huge fee!

We currently support top-ups in 26 currencies - EUR, USD, GBP, PLN, CHF, SEK, NOK, DKK, RON, AUD, NZD, SGD, HKD, ILS, TRY, AED, CAD, HUF, INR, JPY, MAD, MXN, QAR, THB and ZAR. Once you have loaded your account, you can exchange between the currencies in the app; send free money transfers in 26 currencies to banks around the globe; or spend in 120 currencies with a Revolut card.

We'll take care of the conversion for you when you use your Revolut card abroad. For example in you're in Thailand, we'll convert your GBP balance to THB automatically when you spend with your card.

Please note, if you are topping up via a bank transfer outside of the EU your bank may charge you a large international wire transfer fee as such transfer would go via SWIFT.

 

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For a few illiquid currencies, we provide the best rate we possibly can. For THB and RUB, we apply a small 1.5% markup on the exchange rate. For UAH we apply a 1% markup.

At the weekend (Friday 23:59 - Sunday 23:59) we apply a small mark up on the spot rate as the Forex markets are closed. We take the rate from Friday 23:59 and apply a 0.5% mark up on major currencies and 1.0% on other currencies. Please be aware that we pull rates from our providers, and they are obligated to present us with updated rates whenever they are informed of a change from one of their suppliers. This means that the weekend rate may fluctuate and not be the same as the exchange rate we use from Friday. For illiquid currencies like Russian Ruble and Thai Baht, there is 1.5% mark up on weekend.

 

 

 

[Pib]

Well, with the Revolt applying a 1.5% markup on THB and the  SCB debit card charging a 2.5% currency risk fee (foreign transaction fee) that adds up to 4%.

 

[KneeDeep]

3 hours ago, Pib said:

Well, with the Revolt applying a 1.5% markup on THB and the  SCB debit card charging a 2.5% currency risk fee (foreign transaction fee) that adds up to 4%.

 

 

Not necessarily. It depends on whether he is topping up and holding Thai Baht.

I haven't looked lately at the App, so I don't know the currencies that currently can be held. 

[JoshBe]

Thank you all for the replies.

 

I'm topping up with EUR. Revolut doesn't allow topping up with THB. 

 

I'm not converting any money inside Revolut, that's why I assume that the 4% fee is composed of MasterCard's slightly below market exchange rate and some hidden (?) fee from the SCB bank.

[Pib]

49 minutes ago, JoshBe said:

Thank you all for the replies.

 

I'm topping up with EUR. Revolut doesn't allow topping up with THB. 

 

I'm not converting any money inside Revolut, that's why I assume that the 4% fee is composed of MasterCard's slightly below market exchange rate and some hidden (?) fee from the SCB bank.

With the SCB 2.5% foreign transaction fee and the MC rate that generally runs around 0.5%  lower than FX rates we are now up to 3%.   The MC exchange rate can be found at their exchange rate page but it's always a day or two behind the current date so that needs to be taken into consideration if using current day FX rates as a reference.   And if SCB also charges their Bt100 flat fee as shown in the snapshot earlier in addition to their 2.5% foreign fee then you are probably right at the 4%.

[JoshBe]

5 hours ago, Pib said:

With the SCB 2.5% foreign transaction fee and the MC rate that generally runs around 0.5%  lower than FX rates we are now up to 3%.   The MC exchange rate can be found at their exchange rate page but it's always a day or two behind the current date so that needs to be taken into consideration if using current day FX rates as a reference.   And if SCB also charges their Bt100 flat fee as shown in the snapshot earlier in addition to their 2.5% foreign fee then you are probably right at the 4%.

 

This makes sense. Thank you for that insight. 

 

I've done some more research and it appears that most (if not all) of credit and debit card offered in Thailand have the 2.5% foreign exchange fee.

 

I'm wondering now if someone can recommend a credit card with a generous bonus or cashback program, that would alleviate those fees somewhat?

[KneeDeep]

8 hours ago, JoshBe said:

Thank you all for the replies.

 

I'm topping up with EUR. Revolut doesn't allow topping up with THB. 

 

I'm not converting any money inside Revolut, that's why I assume that the 4% fee is composed of MasterCard's slightly below market exchange rate and some hidden (?) fee from the SCB bank.

 

You should ask them to amend their FAQ;

 

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We currently support top-ups in 26 currencies - EUR, USD, GBP, PLN, CHF, SEK, NOK, DKK, RON, AUD, NZD, SGD, HKD, ILS, TRY, AED, CAD, HUF, INR, JPY, MAD, MXN, QAR, THB and ZAR.

 

[KneeDeep]

So you can top up directly with Thai baht. That way, even though you'll need to do the swap with Revolut, you can keep your costs down to 1.5%. But then Revolut applies a charge for cards issued outside the EEA.

You'll need to confirm with them quite how it works best to your advantage.

 

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Will I be charged to top up by card?

 

Topping up in GBP, EUR, PLN, DKK, SEK, NOK, RON and CHF with a debit card or credit card is completely free.

Please note that if you top up with a card that has not been issued within the EEA (e.g. a US based card) or you top up with a commercial card then we may charge a small fee just to cover our costs.

 

https://www.revolut.com/faq?lang=en

 

Alternative way is to find someone in Germany who holds a Thailand bank account or someone who lives in Thailand who still holds an account in Germany and arrange a regular currency swap.

They could charge perhaps 1% to cover possible fluctuations.

 

 

Edited January 22, 2018 by KneeDeep

[Pib]

You would also need to find out if the SCB foreign transaction fee applies only in cases of currency exchange "or" also in cases where no currency exchange occurs but it simply a transaction generated outside of Thailand....does matter what currency  was used...it just had to be a foreign transactions. 

 

Just for example Bank of America debit card usage is that way...the foreign transaction fee is applied even if the charge is originally in US dollars/no currency exchange required....just the fact it was a foreign transaction generates the fee charge.   See quote below from BoA fee schedule for their debit card.   

 

The fee policy varies from card-to-card, bank-to-bank, etc.  Some may not charge their "full" foreign transaction fee, say 2.5%, if the charge occurs in the card's currency, but instead charge a lower fee of say 1% if the foreign charge occurs in the card's currency.  By card's currency I mean the card was like issued in the UK so its currency is pounds; issued in the US so its dollars, issued in Thailand so its baht, etc.

 

Banksters get sneaky on their many fees and variations of the fees.

 

[JoshBe]

10 hours ago, KneeDeep said:

So you can top up directly with Thai baht. That way, even though you'll need to do the swap with Revolut, you can keep your costs down to 1.5%. But then Revolut applies a charge for cards issued outside the EEA.

You'll need to confirm with them quite how it works best to your advantage.

 

 

https://www.revolut.com/faq?lang=en

 

Alternative way is to find someone in Germany who holds a Thailand bank account or someone who lives in Thailand who still holds an account in Germany and arrange a regular currency swap.

They could charge perhaps 1% to cover possible fluctuations.

 

 

 

I've dug a little deeper and it looks like the THB top up can only be done via bank transfer. The bank is located in London which defeats the whole purpose. 

 

Top ups via credit or debit card are only possible in EUR, GBP, CHF, DKK, NOK, PLN, RON, SEK and USD

Today I will go to my bank and see if it's possible to send money abroad even though I don't have a work permit. If their fees + forex rate is less than 4%, it might better than Revolut after all (even though going to the bank for every transfer is a hassle).

[3421abc]

Try N26, Bunq, LeuPay. if I am not mistaken N26 is in Germany.

 

Why instead of loading funds into Revolut you just ship your SCB card to Germany and let someone withdraw the funds.

Wire transfer tends to be the lowest cost to send money out.

[cookieqw]

Just keep an account in Germany then with internet banking you can transfer money to your family  no charge

[JoshBe]

6 hours ago, cookieqw said:

Just keep an account in Germany then with internet banking you can transfer money to your family  no charge

 

If I'm not mistaken Thai banks require a work permit or retirement visa to allow online banking transfers. Otherwise the transfers can only be done at the bank counter by filling out a form a stating the reason for the transfer (requirement by BoT).

 

I didn't have the chance yet to go to my bank, so I guess I will know more soon enough :)