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How to use credit cards when travelling (and in Thailand)

 

 

This post is an excerpt of a longer article.

 

Credit cards have become such a simple and integral part of shopping and life generally that it is now entirely possible to go for months and perhaps even years without touching a banknote. You can pay your bills, buy your groceries, dine at restaurants, shop for essentials and luxuries - virtually every transaction can be completed with a credit card. You can book an overseas holiday with a credit card…but what happens when you get there?

 

1. Use a credit card that’s widely accepted

 

This probably seems like an obvious one, and applies as much for selecting a credit card to use in your own country as it does for choosing one to use overseas, but picking a card that will be widely accepted is essential. Visa cards are accepted in over 200 countries around the world, which is pretty impressive when you consider that some sources suggest there are only 193 countries in the world! The United Nations officially recognises 241 countries and territories, which means that there are only about 40 that don’t accept Visa.

 

2. Get a card with low foreign transaction fees

 

Regardless of how many countries your type of credit card is accepted in, it’s the issuer that decides how expensive doing so is going to be for you. Since sending money across national borders is a remarkably difficult and slow process, card companies tend to prefer that you only use their products in the country they were issued in.

Most credit card companies add about 3% to each overseas transaction as their fee. If you assume that a mid-range holiday in Thailand costs an average of 1,000 to 4,000 baht per day, an additional 3% makes it 1,030 to 4,120 baht per day or as much as 1,680 baht on top of the cost of a two-week break. You’re basically paying for a low-budget 15th day on a 14-day holiday without getting any of the benefits of it.

 

3. Tell your issuer where you're going

 

For your peace of mind and security, credit card companies monitor where your transactions are taking place and what you are purchasing. If you suddenly buy something completely out of your usual habits in a country on the other side of the planet, the natural assumption is that your card has been cloned or stolen. Usually, the company will automatically block all further transactions until the truth is confirmed.

 

4. Be careful who you buy from

 

In any and all countries in the world, tourists are considered easy targets by thieves, pickpockets, fraudsters, scammers and any number of other unscrupulous chancers. They don't know the area, generally have an inherent trust of friendly locals and the simple fact that they're enjoying their leisure time in a foreign country clearly indicates that they have enough money to make them worth stealing from.

 

Minimising the risk of falling victim to these individuals starts with basic theft-prevention: keep your wallet in a front pocket - ideally one with some kind of fastener to keep it closed; don't carry any more money than you have to and keep the rest locked in your hotel safe; don't believe or buy into any offer that seems too good to be true; be suspicious of random strangers starting an idle conversation with you in the street, particularly around major tourist attractions - the list goes on.

 

5. Don’t stick to your own currency

 

This section is more for people travelling to Thailand but the same logic applies to those with Thai bank accounts who are travelling abroad.

 

If you’re buying a fancy meal and I tell you that the cost is 6,000 baht, do you consider that a good deal or not? Without checking the conversion rate or without having lived in Thailand for a bit, you are very unlikely to be able to know precisely how much that is and whether or not it is a fair price for the value of the meal. If I tell you that it’s about US$200 that might help, unless you don’t know the value of the dollar relative to your home currency either.

 

Given that checking the exchange rate, whipping out a calculator or doing the sums in your head with every purchase is incredibly frustrating, many travellers choose to take advantage of dynamic currency conversion (DCC) or cardholder preferred currency (CPC). With these processes, you designate the currency that you will pay in. The benefit is that you can more easily understand the amount you are paying since it will be in a currency that you are more familiar with.

 

6. Use a multi-currency card

 

DCC and CPC have created a lot of controversy over the years because they are so profoundly unkind to users, merchants and even card issuers. Fortunately, some alternatives have now emerged which combine the convenience of knowing the value of the money you are spending with the reduced cost of making payments in the currency of the country you are shopping in. The chief alternative is the multi-currency travel wallet.

 

This post is an excerpt of a longer article from DeeMoney, Thailand’s payment provider. Exchange and send money to 14 countries, register via our app, website or in store. 

 

Send money to Australia, Bangladesh,  Cambodia, China, India, Indonesia, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Singapore, Sri Lanka, and Vietnam from just 150 baht per transaction plus a foreign exchange fee.

 

DeeMoney serves as a hybrid solution that’s similar to both Transferwise and Western Union, yet distinguishable from both. Whilst TransferWise offers only digital transfers, and WesternUnion mainly cash transfers, DeeMoney is Thailand’s only service to provide both means of transferring money.

 

[Kimtrau]

Credit cards are a big issue particularly in Thailand, and slowly growing in Vietnam, where I live.

To my experience, in Thailand everybody shall insist to get charged in THAI BAHT - if not you will be always cheted by seller. 2 years ago I bought a Samsung mobile phone at the Samsung outlet in Central Dept. Store in Pattaya. I was overcharged ca. 100 € while the shop used its own exchange rate. Regular experience everybody can make at Bangkok International Airport while buying goods at Kingpower Duty Free Shops - which must bring this enterpreise MILLIONS of extra-income !!! Last months I purchased some perfume for my wife for around 6.000.- Baht - and was charged in Euro, and paid about 12.- Euro more expensive as if I had been charged in Thai Baht. I complained to Kingpower and they confirmed that their staff should ask every customer in which currency their cards shall be charged....

 

Here's my correspondence with Kingpower and the reply from Kingpower Dutyfree in Thailand:

King Power First of all, we do apologize for the incident. It was our staff error as customer basically must be asked first. As we would like to correct your payment, please kindly advise your name and payment details via inbox so that we are able to relay this to our concerned department to reverse to Thai baht accordingly.

to my posting of 4th November, 2019:

Ihme Klaus doesn't recommend King Power.
November 4 at 8:53 PM

While paying with a credit card, customers should be asked for the currency payment as done in previous years !! Now you charge in everybody's home currency without asking - like in my case in Euro - while using an exchange rate which is far under the regular bank exchange rate. Yesterday I unfortunately forgot my request for paying in Thai Bath and was "cheated" by over 300 THB while buying goods for about 6.500 THB !I will start a wide spread information campaign on the internet warning all tourists to Thailand to be aware of their credit card payments when purchasing goods at Kingpower Duty Free at their departure from Bangkok Suvarnabhumi Airport.

Regards from Vietnam and have a nice Christmas season, Klaus

[Dazinoz]

One anti scam method I use is to write down the CVV number then scratch it off the card itself. This number is only used when purchasing online and by scratching it off it helps prevent someone you hand the card to pay for something writing it down and making an online purchase on your card later.

[finnishmen]

NO NEWER TOO much has scammed in thailand ewery hotell. and other NO ewer use. only go ATM and take out money how much you think need some day.

[VBF]

Some years ago (Jan 2017), I stayed at a hotel in Pattaya where I stay frequently. Usually, I pay them cash - this time, for MY convenience, I paid my final bill on a UK-issued card.

Mistake!  Apart from the 3% service charge, of which I was aware, the transaction was charged in UKP at the bank's ridiculous exchange rate, rather than in Baht. The official rate at the time was about 43 Baht / UKP - the rate charged to my card was 39.3!

I don't think the hotel was responsible - rather it was their payment processor but it served as a lesson and I'm glad I only put the final few days on my card!

 

 

[dlclark97]

The only time I have ever had a credit card compromised was at a PTT gas station in Thailand.  I now this as it was the only place it had been used in over a year.  Big charges started to appear in furniture and appliance stores in Florida.  Problem went away with VISA's help but...…..  Since that time I NEVER use a credit card at any location where it would be out of my sight even for a minute.  No problems since.  Another comment.  Yes make the charge in the local currency or know exactly how it will convert.  Also remember that most credit cards do have the 3% foreign transaction fee but also many who accept credit cards in Thailand add another 3% which I guess is their fee for your convenience to use it.  In the USA Visa prevents vendors for making this extra charge. 

[Hans007]

Does any of you use Revolut? I was in zeveral shops in bkk and hua hin...could NOT pay with it!!! (7/11..big C..famely mart etc etc). I have a thai bath account on Revolut.

 

Hans

[Morty T]

I only use my US CC when purchasing big stuff (TV, appliances and such). Being that the idea of consumer protection is just a fantasy in Thailand. On a recent purchase of a new Samsung Refrigerator and then finding the freezer section didn't work, I was told my only option was warranty repair. When I informed the Store that I purchased this with my US CC and would be filing a chargeback for the defective junk they just sold me; they delivered a new one the next day and took away the other. Something that would have never happened with my wife's Thai Issued card.