Travellers cheque alternative

[STEALTH K3]

It seems that travellers cheques are getting less favourable now with less places to change them.  what else out there is there to use save leaving money in the hotel bit dubious with the top up travel cards there seems to be hidden fees with them, what ones do people recommend if any.

[Just Weird]

Have banks stopped exchanging travellers cheques?

[STEALTH K3]

44 minutes ago, Just Weird said:

Have banks stopped exchanging travellers cheques?

 Don't think so was told there are less accepting them now, plus the charges have gone up 153bht a cheque from the 33 bht previously 

[jerry921]

It depends on the country. I don't know about Thailand, but when I traveled to Mexico two years ago I wanted to take some traveler's checks with me. I had some (10 years old!), but wanted more. I went to my local bank, which used to sell them without charging a fee. They no longer sold them at all. I had to go to several banks before I found one that issued them. They had several tellers, and the one I walked up to said she had been working there two years and had never given any out. That should have been my clue. Fortunately another teller had and knew how to do it and instructed her. I should have given up right then, but I didn't.

 

When I got to Mexico I could not find anywhere to cash a travelers check. Banks refused them. Money changers refused them. Hotels refused them. The American Express office wasn't anywhere to be found in the area google maps said it should exist. I spent a full day running around town (and no small amount on taxis) to no avail. I ended up taking the checks back to the US and depositing them to my own bank account. At least they still accepted them. So no more traveller's checks for me.

 

From what I read on the business pages, Amex's traveller's check business is headed to zero within a year or two.

 

Traveler's checks are a dead thing.

 

People just take along an ATM card and pull local currency from a local ATM. It's less hassle than the traveler's checks, and sometimes cheaper. Sometimes not. I think Amex used to charge 2% of the face value for the checks, and then you'd get hit with a bad conversion rate and a conversion fee when you changed them at a bank in the foreign country. With an ATM you pay a fee and get something less than the ideal exchange rate, but it's usually around 1% below the interbank rate, so if you pull a decent amount of cash at a time from an ATM the fees end up being less than what you'd pay for traveler's checks.

 

Maybe they still work in Thailand, but in general, I'd say from now on, just leave home without them. Take two ATM cards for safety.

[jackdd]

Everybody is using credit cards today, so they don't have a reason to use traveller cheques

Just make sure you get a credit card that doesn't charge a "foreign currency fee" or any other fee for withdrawing. And if available in your country / for you make sure that they refund the ATM surcharge fee of 220THB.

If they don't refund the 220THB, you can either withdraw money at a bank counter where they don't charge the fee, or you just ignore it, because let's face it, if you withdraw 30k, then it's less than 1%, so doesn't matter so much.

 

And in case that you are a regular visitor: Open a bank account in Thailand and keep your money there

Edited February 23, 2018 by jackdd

[KhunBENQ]

2 hours ago, jackdd said:

If they don't refund the 220THB, you can either withdraw money at a bank counter where they don't charge the fee, or you just ignore it, because let's face it, if you withdraw 30k, then it's less than 1%, so doesn't matter so much.

Yep, a 30k ATM withdrawal is hard to beat even with the 220 Baht fee (0.67%) under the condition that your home country bank does not add another foreign transaction fee.

 

And even if the concerns are justified: cash beats them all.

I always look for hotel (rooms) with a decent room safe of safe at the reception.

 

Edited February 23, 2018 by KhunBENQ

[STEALTH K3]

I can use my Barclaycard credit card out there with no fees and upto £500 daily withdrawal fee so that will do,  if the card gets lost or stolen they can replace upto 3 days 

[Thaidream]

I used to always carry American Express Travelers checks to Thailand but I stopped when the rate went from 33 Baht per check to 153 Baht- the banks will still cash them at any large Thai bank and give a better rate of exchange than cash but the extra 153 Baht per check seems to obviate the exchange gain unless you can bring money using a $500 denomination and these are hard to find at banks in the US to sell.  Thailand does have an American Express office in the Phaya Thai area that is quite efficient. All banks are greedy but Thailand is one of the worst with their 220 Baht transaction charge and the excessive TC charge. They are losing huge numbers of deposits because their bank staff is too lazy to open foreigner bank accounts.

[ubonr1971]

On 2/23/2018 at 3:39 AM, jerry921 said:

It depends on the country. I don't know about Thailand, but when I traveled to Mexico two years ago I wanted to take some traveler's checks with me. I had some (10 years old!), but wanted more. I went to my local bank, which used to sell them without charging a fee. They no longer sold them at all. I had to go to several banks before I found one that issued them. They had several tellers, and the one I walked up to said she had been working there two years and had never given any out. That should have been my clue. Fortunately another teller had and knew how to do it and instructed her. I should have given up right then, but I didn't.

 

When I got to Mexico I could not find anywhere to cash a travelers check. Banks refused them. Money changers refused them. Hotels refused them. The American Express office wasn't anywhere to be found in the area google maps said it should exist. I spent a full day running around town (and no small amount on taxis) to no avail. I ended up taking the checks back to the US and depositing them to my own bank account. At least they still accepted them. So no more traveller's checks for me.

 

From what I read on the business pages, Amex's traveller's check business is headed to zero within a year or two.

 

Traveler's checks are a dead thing.

 

People just take along an ATM card and pull local currency from a local ATM. It's less hassle than the traveler's checks, and sometimes cheaper. Sometimes not. I think Amex used to charge 2% of the face value for the checks, and then you'd get hit with a bad conversion rate and a conversion fee when you changed them at a bank in the foreign country. With an ATM you pay a fee and get something less than the ideal exchange rate, but it's usually around 1% below the interbank rate, so if you pull a decent amount of cash at a time from an ATM the fees end up being less than what you'd pay for traveler's checks.

 

Maybe they still work in Thailand, but in general, I'd say from now on, just leave home without them. Take two ATM cards for safety.

I used them in mexico in year 2000. The lady overpaid me and I went back to the hotel and realised this. The next day I returned and she was so grateful as her boss was very angry. 

 

I exchanged many Tc on khao san road up to 2008 but obviously none since then. Technology moves forward. 10 yrs from now we will all be using crypto currencies. Trust me on this one. Buy now at these cheap prices. I have.

Edited February 24, 2018 by ubonr1971

[cacahootie]

For reference - Aeon bank ATMs have only a 150 baht ATM fee, but a 20k withdrawal limit.  I've not been able to find an ATM that will give me 30k, even those that say they have a 30k limit seem to limit it to 20k for an external visa transaction.  But when you do the math - using an ATM is basically competitive with any other means you'd use, and a whole lot more convenient.  At least for me, the exchange rate is very favorable compared with any of the Thai bank rates, which is something to consider as well.

[Pib]

48 minutes ago, cacahootie said:

For reference - Aeon bank ATMs have only a 150 baht ATM fee, but a 20k withdrawal limit.  I've not been able to find an ATM that will give me 30k, even those that say they have a 30k limit seem to limit it to 20k for an external visa transaction.  But when you do the math - using an ATM is basically competitive with any other means you'd use, and a whole lot more convenient.  At least for me, the exchange rate is very favorable compared with any of the Thai bank rates, which is something to consider as well.

Krungsri and TMB ATMs provide Bt30K per transaction assuming your card-issuing bank allows you that much per transaction/day.   I used a Krungsri ATM just a few days ago to do two Bt30K withdrawals one right after the other with 2 different U.S. bank debit cards.   Bt220 fee charged each time but my two banks do not charge a foreign transaction fee and reimburse ATM fees.

[elgenon]

Lots of people, especially from less developed countries, use $100 bills. Good rates at money changers. No fees. Easy. Just keep your GF away from them. 5555

[Stargeezr]

An alternative is either load up your credit card, then use it, or better yet. When you arrive Thailand, open a bank account, with the proper information required, then in future just have your money wired to that bank from your country. Hope this info was helpful.

Geezer

[jerry921]

1 hour ago, elgenon said:

Lots of people, especially from less developed countries, use $100 bills. Good rates at money changers. No fees. Easy. Just keep your GF away from them. 5555

I would want something more than a single ATM card, but US$100 bills wouldn't be my preferred alternative.

 

The importance of a backup plan is not only because your wallet & card might get stolen. The other danger is that the card gets skimmed and you have to cancel & replace it while overseas - not a trivial hassle, and you could run out of money waiting on a new card to arrive if all you had was the one card.

Two cards is much better, even if only one of them refunds ATM fees.

 

 

[jackdd]

1 hour ago, jerry921 said:

I would want something more than a single ATM card, but US$100 bills wouldn't be my preferred alternative.

 

The importance of a backup plan is not only because your wallet & card might get stolen. The other danger is that the card gets skimmed and you have to cancel & replace it while overseas - not a trivial hassle, and you could run out of money waiting on a new card to arrive if all you had was the one card.

Two cards is much better, even if only one of them refunds ATM fees.

 

 

https://www.visaeurope.com/lost-your-card

Probably available world wide.

Depending on your home bank this service can be free (at my german bank it is free)

So if i lost my card they would send me cash by western union if i call them, and i would also get a new card within a few days.

But of course it makes totally sense to have a second card.

Edited February 25, 2018 by jackdd

[cacahootie]

1 hour ago, jackdd said:

https://www.visaeurope.com/lost-your-card

Probably available world wide.

Depending on your home bank this service can be free (at my german bank it is free)

So if i lost my card they would send me cash by western union if i call them, and i would also get a new card within a few days.

But of course it makes totally sense to have a second card.

I have a visa debit card and last year while in Thailand I (very stupidly) let an ATM eat my card because I forgot to take it back out at the end (very very stupid, I know).  I contacted my bank to get a new card, and there was zilch they could do aside from FedEx me a new card from the USA, and even then it was only express not overnight, so it ended up taking about 5 days.  I was able to Western Union myself money twice via the direct bank account method, but then I got locked out for security review and went into that black hole (so I wouldn't rely on that).  Now I have a credit card which has zero % international fee but charges a somewhat hefty cash advance fee and a debit card which charges 1% with no fees and $15/mo ATM fee reimbursement (which even works w/ the Thai ATM fees).  Even considering the 1% fee and ATM fee, the improved exchange rate via the visa card makes ATMs competitive with either wiring to a Bangkok Bank account from USA or Transferwise.  The instantaneous nature of ATMs is nice too...  I miss Japan with no fees or penalties whatsoever, just free ATMs...

[jerry921]

8 minutes ago, cacahootie said:

I let an ATM eat my card

I have nearly done that. The ATM I use a lot gives me my cash and receipt and then sits there asking "do you want another transaction" while I put the money away. I've nearly walked off at that point without my card, and I use this same ATM all the time so I should be trained...

 

Hopefully this won't be seen as too far off topic: couldn't you have gone into the bank that owned the ATM and gotten your card back?

 

I have read advice from people who say it's best to only use ATMs at bank branches, so if your card gets retained you can get it back.

 

Making sure you have someone (a relative or friend) lined up who can send you cash by western union is a great backup plan, better than traveler's checks in many ways.

 

I wonder if there are things that can be done with a smart phone nowadays to get cash if you set them up properly. I know my phone has some kind of pay feature that I've not enabled - seems dangerous - but I don't know if it's usable to get cash. Still might be handy way to survive until a replacement ATM card arrives if it works like a credit card. Assuming you get pickpocketed or skimmed or lose the card in the machine instead of getting mugged and losing the phone too.

[jackdd]

8 minutes ago, jerry921 said:

I wonder if there are things that can be done with a smart phone nowadays to get cash if you set them up properly. I know my phone has some kind of pay feature that I've not enabled - seems dangerous - but I don't know if it's usable to get cash. Still might be handy way to survive until a replacement ATM card arrives if it works like a credit card. Assuming you get pickpocketed or skimmed or lose the card in the machine instead of getting mugged and losing the phone too.

If you have a bank account at Krungsri you can generate a code in your online banking with which it's possible to get money from an ATM. Does of course not need to be your own, if you have any friend who has a Krungsri bank account he can generate such a code, send it to you, and you can get cash from a Krungsri ATM with it.

Maybe other banks offer this too

[cacahootie]

7 hours ago, jerry921 said:

Hopefully this won't be seen as too far off topic: couldn't you have gone into the bank that owned the ATM and gotten your card back?

It was in front of a 7-11, not at a bank branch.  I called the bank's call center and they were like "sorry, nothing we can do".  I had eaten at a restaurant across the street and realized I didn't have enough cash, so I was a bit scatterbrained and was in a hurry to get back and settle the bill.  I'd eaten there a number of times before, so it wasn't really a big deal since they knew I wasn't a scammer... but along those lines I was focused on paying my tab rather than the business at hand.

[elgenon]

21 hours ago, jerry921 said:

I would want something more than a single ATM card, but US$100 bills wouldn't be my preferred alternative.

 

The importance of a backup plan is not only because your wallet & card might get stolen. The other danger is that the card gets skimmed and you have to cancel & replace it while overseas - not a trivial hassle, and you could run out of money waiting on a new card to arrive if all you had was the one card.

Two cards is much better, even if only one of them refunds ATM fees.

 

 

I bring $100 bills and use my no foreign transaction fee cc as a backup. And in case of emergency I have a high limit.

 

There may be no foreign transaction fee but you get the exchange rate the company on your cc picks (I believe) . Better rate at the money exchanges.

 

I kept reading that Schwab is the best because there is no cost (including refunding ATM fees)so I finally chatted with them. I was told there is a $25 wire fee and you get the exchange rate that Visa chooses. See previous sentence to see what I think of that.

 

If I am seeing this wrong, someone please educate me.

[jackdd]

8 minutes ago, elgenon said:

I bring $100 bills and use my no foreign transaction fee cc as a backup. And in case of emergency I have a high limit.

 

There may be no foreign transaction fee but you get the exchange rate the company on your cc picks (I believe) . Better rate at the money exchanges.

 

I kept reading that Schwab is the best because there is no cost (including refunding ATM fees)so I finally chatted with them. I was told there is a $25 wire fee and you get the exchange rate that Visa chooses. See previous sentence to see what I think of that.

 

If I am seeing this wrong, someone please educate me.

The exchange rates of the credit cards are set by Visa / Mastercard

But the difference of for example Superrich and Visa is usually less than 1%

For example USD to THB today:

Visa: 31.318

Superrich: 31.34

So today you would get (31.34-31.318)/31.318*100 = 0.07% more money from Superrich than from Visa

 

[elgenon]

1 minute ago, jackdd said:

The exchange rates of the credit cards are set by Visa / Mastercard

But the difference of for example Superrich and Visa is usually less than 1%

For example USD to THB today:

Visa: 31.318

Superrich: 31.34

So today you would get (31.34-31.318)/31.318*100 = 0.07% more money from Superrich than from Visa

 

Not much, thanks.

[jerry921]

The $25 fee is for international wire transfers, which you would do if you wanted to move a big amount of money to a non-US bank account. It compares very favorably to what other banks charge for *international* wire transfers (usually at least $40). Most banks have a lower rate for domestic wire transfers, like you use when buying/selling a house, but that's not apples-to-apples.

 

If you have schwab and want to move money to another US account you can just use ACH - that's free. You have to set up the link ahead of time and work through the micro deposit verification thing.

 

And if you have enough with Schwab you get one free international wire every 3 months (they waive the $25 fee). I think "enough" means $100k, and I think they count money in linked Schwab accounts (brokerage & retirement) but I'm not 100% sure as I've never used them for an international wire at all.

[jerry921]

I must correct myself. I was looking at the Schwab web site to try to find out minimum balances and other fee charges.

It says $25 for domestic wire transfers, and doesn't quote a price (that I could see) for international wire transfers.

And the "Charles Schwab Pricing Guide for Individual Investors" says this under "Special Service Fee Waivers":

 

Wire transfer fee: With $100,000–$499,999 in Household Balances, you will receive three free online domestic wire transfers per quarter; with $500,000 or more in Household Balances, or 36 or more stock or option trades per year in Accounts of Your Household, you will receive three free domestic wire transfers per quarter.

 

The bolding is mine - apparently the only difference between 100k and 500k+ is the "online" word. But both say "domestic". I've not seen anywhere that they give a price for "international" wire transfers. In one place where they are talking about wires they say "US dollars only".

 

I think there are other threads where people have recorded and displayed chat sessions with Schwab representatives asking about this, but this is the most recent thread I was writing about Schwab in, so I put the correction here.

 

I'd be interested in hearing from anyone who's wired money from Schwab to a Thai bank, how they did it (online or helped by a representative) and what it cost them, and what range their "household balance" falls into.