Cash advance with no fees?

[Don Chance]

I read on some Thai travel blog that you could get a cash advance on a CC with no service fees and that was the cheapest way to withdraw money.  Can anyone confirm this?

[Mavideol]

never heard of anything for free here

[RichardColeman]

8 minutes ago, Mavideol said:

never heard of anything for free here

The clap ? !

[JoseThailand]

1 hour ago, Don Chance said:

I read on some Thai travel blog that you could get a cash advance on a CC with no service fees and that was the cheapest way to withdraw money.  Can anyone confirm this?

Krungsri and Bangkok Bank do that. Note that at Krungsri there is no fee only for Mastercard CC. Just bring your passport and a credit card to a bank and say that you need a cash advance. They are well familiar with that. 

Edited February 15, 2022 by JoseThailand

[freedomnow]

10 minutes ago, JoseThailand said:

Krungsri and Bangkok Bank do that. Note that at Krungsri there is no fee only for Mastercard CC. Just bring your passport and a credit card to a bank and say that you need a cash advance. They are well familiar with that. 

Well, without even looking into it they must be getting you on the exchange fee vs Wise rate.....

[SheikYabodyline]

Using a credit card for a cash advance over the counter will usually get you i). a lousy exchange rate; ii) a possible service fee the credit card end, if not the Thai end, depending on where the CC was issued; iii) extortionate interest rates of the cash advance from the day it was made.

There are exceptions to this, depending which credit card, where it was issued, its T&Cs etc, but in general this is true.

[JoseThailand]

7 minutes ago, freedomnow said:

Well, without even looking into it they must be getting you on the exchange fee vs Wise rate.....

It's a Mastercard/Visa exchange rate, just like when you use an ATM with a foreign ATM card, but without the 220 baht access fee.

Edited February 15, 2022 by JoseThailand

[JoseThailand]

2 minutes ago, SheikYabodyline said:

Using a credit card for a cash advance over the counter will usually get you i). a lousy exchange rate; ii) a possible service fee the credit card end, if not the Thai end, depending on where the CC was issued; iii) extortionate interest rates of the cash advance from the day it was made.

There are exceptions to this, depending which credit card, where it was issued, its T&Cs etc, but in general this is true.

You can do a cash advance with a debit card too.

[JoseThailand]

All in all, a cash advance is the cheapest way to get cash in Thailand, if you don't have a Thai bank account.

[JoseThailand]

6 minutes ago, SheikYabodyline said:

a lousy exchange rate;

You get a lousy exchange rate every time you pay in Thai stores with a foreign credit/debit card.

[freedomnow]

6 minutes ago, JoseThailand said:

It's a Mastercard/Visa exchange rate, just like when you use an ATM with a foreign ATM card, but without the 220 baht access fee.

I  still doubt it will be better than Wise rate for a mid-amount of money.

I read after a point wise is not good for really large amounts vs other ways but i don't think it can be beaten.

Though that all assumes a bank account in Thailand to receive it which he may not have..

[JoseThailand]

55 minutes ago, freedomnow said:

I  still doubt it will be better than Wise rate for a mid-amount of money.

I read after a point wise is not good for really large amounts vs other ways but i don't think it can be beaten.

Though that all assumes a bank account in Thailand to receive it which he may not have..

Of course, if he had a bank account in Thailand, that wouldn't be an issue. Anyway, even in that case I think that counter withdrawal would be cheaper than Wise.

[Hamus Yaigh]

1 hour ago, JoseThailand said:

Krungsri and Bangkok Bank do that.

But there is a daily interest charge applied until to repay the amount like anything else you buy with a credit card?

[Hamus Yaigh]

1 hour ago, JoseThailand said:

You can do a cash advance with a debit card too.

Isn't this a cash withdrawal? Not an advance.

[JoseThailand]

Just now, Hamus Yaigh said:

But there is a daily interest charge applied until to repay the amount like anything else you buy with a credit card?

The original poster is asking how to avoid a 220 baht ATM fee, charged by Thai banks. A cash advance is a solution for that. Of course, all the other implications, interest charges etc. related to the issuing bank remain in place. 

[JoseThailand]

6 minutes ago, Hamus Yaigh said:

Isn't this a cash withdrawal? Not an advance.

Technically yes, but in practice it works the same way and they don't differentiate between credit and debit cards. I mean, if you give them a debit card and say you need a cash advance, they will do a withdrawal.

Edited February 15, 2022 by JoseThailand

[gamb00ler]

Most US based credit cards have high fees on cash advances plus high interest rate that starts at the moment of the advance.  The exchange rate used will be the rate set by Visa or MasterCard each day.  Visa's exchange rate is generally only a little worse than Wise's.  I think exchange rate at MasterCard is slightly better than Visa.  I don't track the MasterCard rate as I don't have one.

 

There are a few US based debit cards that have no fees and they also use the same Visa/MasterCard exchange rates as credit cards.  But beware most debit cards charge a service fee.  Some are as high as 3% of the transaction.  I have used my Schwab debit card at Bangkok Bank to get 15K$ instantly with no fees and an exchange rate that easily beat Wise with its 0.536% in fees.

Edited February 15, 2022 by gamb00ler

[gamb00ler]

1 hour ago, JoseThailand said:

You get a lousy exchange rate every time you pay in Thai stores with a foreign credit/debit card.

You don't actually get a lousy rate on the exchange.  You get hit with high fees on foreign transactions on most credit and debit cards.  A card without those fees will only be slightly worse than using Wise.

[JoseThailand]

6 minutes ago, gamb00ler said:

Most US based credit cards have high fees on cash advances plus high interest rate that starts at the moment of the advance.  The exchange rate used will be the rate set by Visa or MasterCard each day.  Visa's exchange rate is generally only a little worse than Wise's.  I think exchange rate at MasterCard is slightly better than Visa.  I don't track the MasterCard rate as I don't have one.

 

There are a few US based debit cards that have no fees and they also use the same Visa/MasterCard exchange rates as credit cards.  But beware most debit cards charge a service fee.  Some are as high as 3% of the transaction.  I have used my Schwab debit card at Bangkok Bank to get 15K$

If you use a credit/debit card with an ATM, you pay all this + 220 baht ATM fee. If you use a cash advance, you pay all this but DONT pay 220 baht ATM fee. Is that so hard to understand?

Edited February 15, 2022 by JoseThailand

[gamb00ler]

1 minute ago, JoseThailand said:

If you use a credit/debit card with an ATM, you pay all this + 220 baht ATM fee. If you use a cash advance/counter withdrawal, you pay all this but DONT pay 220 baht ATM fee. Is that so hard to understand?

What exactly do you mean "you pay all this"?  There are no fees and you can know the exchange rate beforehand.

 

I should have mentioned that my debit card (Schwab) refunds all my ATM fees at the same time it withdraws the funds from my account for my cash withdrawal.

[gargamon]

1 hour ago, JoseThailand said:

The original poster is asking how to avoid a 220 baht ATM fee, charged by Thai banks. A cash advance is a solution for that. Of course, all the other implications, interest charges etc. related to the issuing bank remain in place. 

Did you actually read the original post? It had nothing to do with the ATM 220bt fee. It was about how to avoid service fees while doing a cash advance on a credit card. Both MasterCard and visa have a cash advance fee, generally around 3% of the amount of the transaction. Then there's the interest charged from the moment of the advance.

 

There was a sleazy bike rental guy in Cambodia that used to give cash advances on a CC. His fee was 1.5%. The transaction would show up as a purchase. 

[scorecard]

3 hours ago, freedomnow said:

Well, without even looking into it they must be getting you on the exchange fee vs Wise rate.....

Seems to me above will be true, banks don't do anything free.

 

A cash advance on a foreign CC involves processing on the spot and in the banks/card companies internal processes - all of these have a cash cost, therefore not likely to be free. 

[tuktuktuk]

Just tried it this morning.  They told me ATM only without even looking at my card.

[gamb00ler]

4 minutes ago, tuktuktuk said:

Just tried it this morning.  They told me ATM only without even looking at my card.

Not all banks offer cash advances from tellers and some do but add a fee.  Bangkok Bank charges no fee for a teller transaction on debit cards.

 

Edited February 15, 2022 by gamb00ler

[gamb00ler]

14 minutes ago, scorecard said:

Seems to me above will be true, banks don't do anything free.

 

A cash advance on a foreign CC involves processing on the spot and in the banks/card companies internal processes - all of these have a cash cost, therefore not likely to be free. 

I think @Pib gave an explanation of why some US based debit/credit cards don't charge a foreign transaction fee.  If I remember correctly he stated that the US financial institution that offers the fee free card just bears the transaction fees as a cost of providing service to its account holders.  So Schwab, Capital One, et al pay the fees that Visa/MasterCard charge for doing the transaction and absorb that expense rather than pass it on to the customer.

Edited February 15, 2022 by gamb00ler

[mtls2005]

As gamb00ler points out some U.S. FinServ-based companies like Schwab and Fidelity offer cash advances - similar to how they offer fee-reimbursed (150-220 THB) ATM withdrawals - at the Teller. These are provided by their in-house Visa ATM Debit Card, at the prevailing daily Visa rate (these cards are usually Visa-embossed) with no fees.

 

Schwab allows for $15,000 daily, Fidelity just $2,500 ($5,000 for high networth customers).

 

This remains one of the best ways to 'transfer, exchange, or obtain' THB (within the daily limits) for USD.

 

 

3.1.2 Cash Advances: If your Account allows, you can use your Card to receive Cash Advances from your Account through financial
institutions and some merchants that honor Cards bearing the Visa logo

 

BBL offers this service, probably at their bigger branches which support foreign remittances. Having a BBL account, and directing the THB into that account may prove easier.

 

16 hours ago, Don Chance said:

I read on some Thai travel blog that you could get a cash advance on a CC with no service fees and that was the cheapest way to withdraw money.  Can anyone confirm this?

 

My best guess is "No", with a credit card.

 

Yes, you may be able to get a cash advance, it will not be cheap.

 

Check the terms of agreement on your credit cards.

 

 

Right now 2/16/22 08:13

 

Visa cash advance: $1,000 USD = 32,260.03 THB

 

WISE: $1,000 USD = 32,094.65 THB

 

 

 

 

 

Edited February 16, 2022 by mtls2005

[JoseThailand]

The guy simply wanted to avoid a rip-off 220 baht ATM fee. That is a common question from tourists in Thailand. 

[Bruno123]

18 hours ago, Don Chance said:

I read on some Thai travel blog that you could get a cash advance on a CC with no service fees and that was the cheapest way to withdraw money.  Can anyone confirm this?

Confirmed, though you'll need to have the right kind of credit card; just as it told you on that blog.

 

Not all banks will offer the service and some of those who do, used to add a 'service charge' almost equivalent to the ATM fee. Most will reject debit cards.

Mastercard and VISA rates lag a day behind the spot rate, but for travel money it's not really an issue unless rates are really volatile.

On a US$1000 equivalent advance right now, you'll get the Mastercard rate from the 15th perhaps; 32263 baht. With WISE you'll get the rate from today; 32,159.12

 

In this case, credit card wins.

[KannikaP]

18 hours ago, freedomnow said:

I  still doubt it will be better than Wise rate for a mid-amount of money.

I read after a point wise is not good for really large amounts vs other ways but i don't think it can be beaten.

Though that all assumes a bank account in Thailand to receive it which he may not have..

If you have a Wise account/card, you can have a THB balance on it, derived from say your GBP account, and use that THB to spend in Thailand at quite a small cost, and at Wises' exchange rate.

[4MyEgo]

18 hours ago, JoseThailand said:

Krungsri and Bangkok Bank do that. Note that at Krungsri there is no fee only for Mastercard CC. Just bring your passport and a credit card to a bank and say that you need a cash advance. They are well familiar with that. 

I believe you are confusing that with a debit card, as far as I recall CC attract a 3% fee at Krungsri, i.e. unless you can provide a link to this, no fee on CC transactions.

 

I did an over the counter transaction with my debit card, took out 150k Baht, not fee, although the staff did try to charge me 3% before I confirmed there was no fee, and showed them the link a while back.