Credit Card Issued Outside Of Thailand

[samtam]

I wonder if others are aware of the problem that arises when you use a credit card issued from another country. I use one issued out of Hong Kong and when the bill comes for me to sign, it shows both the THB amount and the HKD (HK Dollar) amount, plus a narrative that states that I have been given the choice to pay in THB or HKD. Firstly, I am rarely asked in which currency I want to pay, and secondly if I state in THB, and they confirm "yes", it will be done at the exchange rate that has been fixed by the local bank through whom the merchant clears. (This is very often a cra--y rate, and I always prefer my HK bank to effect the transfer; the banks here use the best rate to them.) I have discovered that if the bill only shows a THB figure, the transaction is indeed in THB, and the b.s. that you're given that the HKD rate is purely indicative is just that - b.s. The exchange has been effected. Not all merchants do this, but Siam Paragon do, and some of the hotels. It's a bit of a scam here by the banks and the credit card companies. To avoid it specify that you want to pay in THB, and make sure there is no foreign currency figure shown, (whether described as "indicative" or not).

Edited April 25, 2007 by samtam

[JimGant]

if I state in THB, and they confirm "yes", it will be done at the exchange rate that has been fixed by the local bank through whom the merchant clears.

Actually, you've got this reversed. If the transaction is in Thai baht (and the absence of any home currency numbers on your slip verifies this), you'll get the exchange rate available to your credit card sponsor and its related network (Visa/Plus and Mastercard/Cirrus being the two largest). Usually, this exchange rate is favorable, being a few satang better than the telex rate (before fees).

If your credit slip has any mention of your home currency, you're a victim of Dynamic Currency Conversion, and you'll pay through the nose for this "convenience" of instant exchange rate, which is established by the merchant's servicing bank, and is often several baht less than you'd get with the credit card networks. Plus, you'll still pay (with few exceptions) the 1% foreign transaction fee charged by the credit card networks, even tho' they're not doing the conversion (this fee was once called the foreign conversion fee, but was re-titled when Dynamic Currency Conversion arrived). And if your issuing bank tacks on 1-3%, as many do, you'll, of course, still pay this.

Several threads on this are here on TV. Bottom line: Say "Thai baht only" when you hand your card to the merchant/clerk. If they don't understand, or the subsequent slip shows your home currency, call the manager. There's a button on the POS machine they can push to override the Dynamic Currency Conversion position, which more and more seems to be the default position.

[kiakaha]

A competent cashier should always ask you. I have paid bills at several 5-star establishments where they haven't asked me and instead have made up their own minds as to what I want.Then I have to void the transaction and redo it in Baht.

A combination of lack of training and pure stupidity.

[samtam]

My narrative was a bit confusing, especially the bit you've quoted back to me, Jim Gant. What I was trying to say was that when they say "yes, in THB" they do not know what they are doing; only if the slip shows a THB figure is it actually a THB figure. If it ever shows a FCY figure then they have done the transaction at their rate, which we agree is not a good one. I agree with what you're saying and indeed what kiakaha is saying. Most cashiers are not properly trained nor are they aware of the problem, or if they are, they have been trained to feign ignorance, as it's in the favour of the merchant.

[JimGant]

The two managers that I had to call over to "educate" the cashiers sure knew what was going on. This was in Home Pro and the Rimping on the middle ring road in Chiang Mai. Since then, the cashiers have known exactly what I wanted when I insisted "Thai baht only."

For the unaware, this scam will continue to ensnare. Pointing out on this forum who the scammers are might save some readers a few baht if buying potato chips -- or a bundle, should they be buying a kitchen ensemble.

[rak sa_ngop]

If your credit slip has any mention of your home currency, you're a victim of Dynamic Currency Conversion, and you'll pay through the nose for this "convenience" of instant exchange rate, which is established by the merchant's servicing bank, and is often several baht less than you'd get with the credit card networks. Plus, you'll still pay (with few exceptions) the 1% foreign transaction fee charged by the credit card networks, even tho' they're not doing the conversion (this fee was once called the foreign conversion fee, but was re-titled when Dynamic Currency Conversion arrived). And if your issuing bank tacks on 1-3%, as many do, you'll, of course, still pay this.

Several threads on this are here on TV. Bottom line: Say "Thai baht only" when you hand your card to the merchant/clerk. If they don't understand, or the subsequent slip shows your home currency, call the manager. There's a button on the POS machine they can push to override the Dynamic Currency Conversion position, which more and more seems to be the default position.

I have just paid a substantial hospital bill with a UK credit card. I was presented the bill in baht but received the credit card slip with the price in GBP. Even in my febrile mind this seemed odd, and checking the exchange rate it was 66.2 baht to the pound, which was a bit low.

Luckily I remembered this thread on TV and asked for the credit card amount to changed to baht. This was done immediately and with no reluctance which makes one wonder whether the poor staff have been instructed to 'try it on first' in the hope the customer doesn't notice, but concede immediately if the customer does. I doubt if the cashier him/herself makes anything out of this.

I think it's the banks who are being sneaky again, because unlike paying for goods and services in the UK where you pay what is shown on the slip, the GBP shown on the credit card slips overseas will have additional charges applied to it.

The only way I can get my own back on the banks is by always keeping my UK credit card balance in credit, and as such I think I have only ever paid credit card charges (apart from these overseas charges) about two or three times in 30 years!

[kiakaha]

Maybe in some places in is deliberate, but when I have encountered this it is because the cashier had the IQ of a ginkgo nut

[samran]

Maybe in some places in is deliberate, but when I have encountered this it is because the cashier had the IQ of a ginkgo nut

which, as my very wise uncle has pointed out, is why they are cashiers and not going something else.