Foreign Master Visa Card Use Which Baht Rate?

[steveflor]

Does anyone know for sure... if I use a Dollar Master card from a bank in the US, or Pound Visa card from the UK to buy goods in Thai baht (e.g. online air ticket, or hotel booking in baht) which rate will they work the conversion from dollar/pound into baht - the Baht onshore or offshore rate?

[samtam]

See my earlier post under this subject in jobs economy banking....

[JimGant]

A few months ago, Mastercard/Cirrus was using the less favorable 'offshore' rates. Now -- at least with my experience -- they're using the 'onshore' rates, as Visa/Plus has been doing all along.

[ProThaiExpat]

The answer to your question, from the "horses mouth" can be found here:

http://corporate.visa.com/pd/consumer_serv...er_ex_rates.jsp

[steveflor]

The answer to your question, from the "horses mouth" can be found here:

http://corporate.visa.com/pd/consumer_serv...er_ex_rates.jsp

This is all helpful. From the link above for VISA it shows $1 today converts to 34.83 (which is clearly the onshore rate). I have just phoned Mastercard in the States (free phone through Skype - they don't seem to have a web page showing current exchange rates) and their rate today for $1 is 32.64 (which is clearly the OFFSHORE rate).

So it means that there's quite a discrepancy between Visa and Mastercard. If one is buying goods here using a card issued outside of Thailand it will be better to use Visa.

[JimGant]

their rate today for $1 is 32.64 (which is clearly the OFFSHORE rate).

Very interesting. I just called my bank (USAA Federal Savings) and asked for today's exchange rate: 32.8 for $1!! So, yes, Mastercard is back to where they were a couple months ago, i.e., gouging us with the offshore rate. (I noticed my last few charges, the last being 4/19, were about 20 satang short of the onshore Interbank Exchange Rate, even after figuring in the 1% foreign transaction fee. Close enough, I figured, but maybe this was the beginning of the backsliding.)

As my only Visa Credit card is Bank of America, and they charge another 2% on top of the 1% Visa foreign transaction fee, I guess it's back to using my Bangkok Bank Debit card, wiring enough money to amortize the fees to a satisfactory exchange rate, then monitoring the account on the Internet to insure some fraudster hasn't cleaned it out.

Oh, I asked the nice lady at USAA whether or not the exchange rate was the one received from Mastercard, or one rewickered by USAA. She assured me it was Mastercard's rate. This question was prompted by the following:

And, although Visa and Mastercard notify the card-issuing bank of the exchange rate to be applied, the bank is not obliged to adhere to it, and may use a more advantageous rate if it feels like doing so.

So, if anyone reading this is still getting onshore rates with Mastercard/Cirrus, please stand up. The nice lady at USAA will then get another phone call..........

[ProThaiExpat]

JimGant: Thanks for the input. As I have previously posted in another thread, I used my Debit Card from Schwab to pay my bill and the rate at the time was very favorable. I now note that card is Visa.

My Citibank credit card is Mastercard and there is no way I will use it now and suffer not only the onshore rate but the 3% "overseas" surcharge.

After all these years, I am beginning to differentiate between Visa and Mastercard.

I would really like to hear from a banker regarding why a bank would choose Visa vs. Mastercard or the reverse. If I recall correctly, when I had the Citibank Advantage Credit Care, gave me American Airlines frequent flyer miles, it was Visa. However, I paid an annual fee for the card.

When I opted for a no fee card, I was issued the Mastercard.

[ProThaiExpat]

Because of the competition for customers between Mastercard and Visa, my instinct is that they wouldn't differ much in their conversion rates in order to stay competitive.

So based on prior posts, I went to the web and did some reading regarding the difference between Mastercard and Visa and after some time, I have concluded there is no real difference between the two.

Where the rub is, as previously posted, is between the issuing institutions. Some really gouge their customers and some don't.

Visa and Mastercard have no control what individual institutions charge or what conversion rates they apply.

Empirical reports from previous posters regarding calls to their institutions, while very informative, in order to be authoritative, would have to include quotes from the same institution and including both cards.

Thus a quote from Bank of America, for instance, as to their rates would have to be for both Mastercard and Visa. As a quote from Bank America regarding only one of these card agencies wold not be definitive in my view, to determine if there is a difference between the two as to conversion rates.

Also, I wonder if there is any difference between a credit card and a debit card when it comes to fees and charges by individual banks.

Clearly, credit cards, with their interest rate structures, are clearly more profitable to institutions than straight debit cards, so fees and charges may differer between them, (in addition to the cash advance fee, of course)

Banker/members where are you when we need you?

[JaiDamJungLoei]

Just my 25 Satangs worth and a couple data points: The wife and I have been using our Mastercard debit cards and Visa credit cards many times over the last few months in LOS and have always gotten the onshore rate for ATM withdrawals and purchases. Both cards are issued by the same US based Credit Union.

[willi2006]

To my knowledge thew issuing bank defines the charges and exchange rates for Visa and Mastercard. Interesting reading Credit/Debit/ATM Cards and Foreign Exchange - FlyerGuide Wiki

Edited May 2, 2007 by willi2006