An and conversion USD rate

[1happykamper]

Wow.. Such a big surprise with SCB bank. Last week I withdrew 20.000 thb at the atm from my USA capital one bank.. I agreed to let USB  "do the conversion at SCB Bank" and my account was debited about 682 USD. 

 

TODAY.. same atm.. "Let my USA bank do the conversion". .. My USA account was debited 644 usd. 

 

38 usd "stolen" by USB bank in Thailand. Just a heads up to you all... However many of you may already know this 55. Live and learn. 

[1happykamper]

Sorry about the subject title typo... Uups. 

[jackdd]

That's well known, never let the bank in Thailand do the conversion, nothing new, all banks do this

[jerry921]

Too bad you didn't learn that lesson a bit more cheaply. Now you know.

 

It's not just Thai banks, either. Expats in other countries withdrawing local currency from US bank accounts have learned the same lesson - if the ATM offers to do the conversion for you, it's a trap.

 

I suspect it applies to all international withdrawals - if your bank does the conversion, they'll treat you somewhat fairly. If you let another bank whose ATM you are using do it, they'll screw you because they can, since they don't expect you'll ever have an account with them.
 

[Pib]

It's called Dynamic Currency Conversion (DCC) which is a misleading, vague term which means the local bank/merchant is setting the exchange rate and it's usually around 3 to 4%  lower than the full Visa/Mastercard/AmEx/UnionPay/etc exchange rate before an foreign transaction fee possibly applied by your card-issuing bank is applied.   

 

And it's highly unlikely the ATM screen will call it DCC...but use some other vague terminology like Bank Rate or some warm & fuzzy name/terminology.  DO NOT accept a DCC transaction....read the ATM screen wording closely and continue on without accepting the DCC offer (ripoff) so you will get the Visa/Mastercard exchange rate.   

 

Anytime an ATM "shows you the exchange" rate that is a DCC offer...that is the local bank's lower exchange rate offer.

 

DO NOT accept a DCC transaction at an ATM or for a purchase in a store as you will surely receive around a 3 to 4% lower exchange rate than the full Visa/Mastercard rate.   For a purchase the Receipt for Signature will show both Thai baht and your home country currency plus have a DCC exchange rate on one of the slips printing out from the point of service machine.  DO NOT sign that receipt for signature....tell the cashier to cancel the transaction and rerun in in Thai baht; not USD/your home country currency. It only takes them a minute or two to do this as I've done it at least a half dozen times over the last few years, but you may run up against a few  merchants who try to tell you it can't be done or they will only accept your foreign card if allowed to charge in your home country currency (i.e., do a DCC transaction).  Those types of merchants are just ripping you off....making an extra 3 to 4%  off of you.   I will not do business with them unless I have no other choice.

 

DCC great for the local bank/merchant; DCC bad for the customer.