Should I pay cash or use my American visa card at a large store or hospital?

[bamnutsak]

If your credit card does NOT offer "No Foreign Transaction Fee", then you are paying that 3% fee. Check the terms of your CC.

 

If so, pay in cash.

 

If you have a credit card with No Foreign Transaction Fee, then pay in THB with the credit card.

 

If you live here and do not have a credit card with No Foreign Transaction Fee, then you should probably get one.

 

 

https://www.nerdwallet.com/best/credit-cards/no-foreign-transaction-fee

 

 

[retarius]

I've had good results with AMEX, plus you get points that you don't have to track with AMEX. Good exchange rates and no extra charges. Small outfits sometimes put 3-5% on the bill to offset what the CC companies (including Thai bank ccs) charge so I tend to pay cash at smaller companies. I find bigger outfits usually don't charge any extra. 

[sandyf]

19 hours ago, Doctor Tom said:

In a hospital or hotel you won't have any choice,

Take it you haven't been to many hospitals or hotels.

[FritsSikkink]

14 hours ago, Doctor Tom said:

Yes, but you usually have to have a credit card to start the process of booking in to either one 

Hospital, no

Hotel can book and pay with a debit card through things like Agoda. They also have options book now, pay at hotel (in cash). Loads of hotels you can walk in and pay cash.

Edited August 29, 2023 by FritsSikkink

[lopburi3]

17 hours ago, impulse said:

If you do pull out your int'l credit card at (for example) Bumrungrad, the next question will be "do you want to pay in THB or USD?"  Ask me how I know that...

 

I haven't a clue what the best answer is.  Fortunately, I just pick up some scripts at Bumrungrad amounting to $400 USD or so.  So I don't sweat the fees.

 

But someone may want to chime in with the right answer.

As said pay any local bill in baht - had same experience at same hospital several decades ago when DCC was first available.  At first it did not make that much difference (but normally worse than baht payment) as home bank did not change extra for card foreign usage but they soon got wise to that ploy and added a foreign usage fee making DCC even less attractive.

[swm59nj]

It depends what type of credit card you have not charging international fees. I used mine for things because there were no fees. And I was getting mileage points 

[moana]

On 8/28/2023 at 3:56 PM, Pib said:

I use my no foreign transaction fee U.S. credit cards that pay 1.5% to2% cash back to pay all my hospital bills, groceries I buy at Lotus/Big C, fuel for the SUV, just any where I can pay with my credit card

This is the way! +1

 

On 8/28/2023 at 3:56 PM, Pib said:

I use my no foreign transaction fee U.S. debit cards (no cash back) to do period counter withdrawals at Thai banks

Why not just use Schwab's debit card (or any other card that refunds ATM fees) and withdraw right at the ATM? Eliminates the human factor, available at all hours, saves time.

 

Btw, one of the benefits of using a card to withdraw cash is that it allows you to withdraw at the peak rate. The card networks set the rate only once a day, based on the previous day's lowest interbank rate. So, if it's not an emergency withdrawal, you can just wait several days until you see the current interbank rate drop below the card's day rate, and only then go and withdraw (=getting the previous day's rate, fully knowing tomorrow's card rate is going to be worse).

 

Of course, there's no guarantee beyond those 24 hours (it might climb right back up a day later), but it's still a huge perk, especially when the rate swings wildly.

[Red Phoenix]

On 8/28/2023 at 2:38 PM, richard_smith237 said:

Niether...

Open a local Bank Account and transfer money to that from overseas. 

Make local payment digitally via mBanking transfer to avoid any 3% Mastercard or Visa charges. 

Yes, there are no banking-charges when paying with your local Thai Bank account debit-card, and the money is in seconds on the seller's account.  

But when I bought some 6 months ago a 60.000,- THB motorcycle at a large bike-shop, they told me they would add 3% when paying with my Thai bank debit-card. So I visited the bank-branche at the other side of the street and did withdraw 60.000,- THB and went back to pay cash. 

[HappyExpat57]

I use a Wells Fargo Active Cash visa. No forex,  2% back on all purchases, and they offer free protection for purchases that are scams.

[radiochaser]

On 8/28/2023 at 5:44 AM, impulse said:

If you do pull out your int'l credit card at (for example) Bumrungrad, the next question will be "do you want to pay in THB or USD?"  Ask me how I know that...

 

I haven't a clue what the best answer is.  Fortunately, I just pick up some scripts at Bumrungrad amounting to $400 USD or so.  So I don't sweat the fees.

 

But someone may want to chime in with the right answer.

I was asked the same thing at Bumrungrad hospital in July.   I chose dollars.  I don't remember if the other hospital I went to before, a few years ago, asked that question.    

 

I was charged a co-pay of 15% by the hospital.   The rest was paid for by my U.S. health insurance.   The bill was for a CT scan with IV injection and blood work.   

I paid the co-pay with my credit card.   The credit card company charged me less than $2.00 for an international international credit card charge.   I had about the same charge from the credit card (under $2.00) after I bought a coffee at a starbucks that was providing service to a movie theater.   After I was given the coffee and I offered up Thai baht to pay for the coffee, I was told, credit cards only!!   

Edited August 31, 2023 by radiochaser

[radiochaser]

On 8/28/2023 at 8:39 AM, CartagenaWarlock said:

All US credit cards now have 1-3% cash back at least. 

Not mine.   I accrue points for flying from purchases.   I have a credit card account almost 30 years old.   It has one of the best point plan for dollars spent of just about any credit card in the U.S. of A..  I have not paid full price for a ticket to fly for several years by using my accumulated points for my tickets.   Last three years I have only flown business using my points.   I do pay fees which are less than $200.00 for the business class tickets.   I pay that with the same credit card, which earns even more points.  

[Sydebolle]

Despite being critical about how business is handled here; such surcharges are not permitted and I never ever came across a vendor trying to add commissions and fees. 

There are "cash only" deals, clearly marked - that is OK. Anything else you can take up with your credit card partner; mind you though that American Express is a charge card and not a credit card and vendors flatly refuse AMEX cards for its outrageously high commission to be borne by the vendor. 

[thailand49]

To me you answer your own question. 

You got the cash cards are use for emergencies. ????

[Yellowtail]

1 hour ago, moana said:

 

Why not just use Schwab's debit card (or any other card that refunds ATM fees) and withdraw right at the ATM? Eliminates the human factor, available at all hours, saves time.

 

I have not had great success with my Fidelity ATM that refunds fees working everywhere. 

 

It seems to work at bank ATMs but often not at private ones. 

[Digitalbanana]

On 8/28/2023 at 11:48 AM, TravelerEastWest said:

Should I pay cash or use my American visa card (THB to USD) at a large store or hospital?

Surely only you can answer that. Using a card comes with convenience but all the associated added costs. Only you will know if it's worth it. For me I would use cash or QR code payment and never use a card unless the last resort as I find the card fees a rip off.

[Yellowtail]

6 minutes ago, Digitalbanana said:

Surely only you can answer that. Using a card comes with convenience but all the associated added costs. Only you will know if it's worth it. For me I would use cash or QR code payment and never use a card unless the last resort as I find the card fees a rip off.

Many cards do not charge fees, and in fact pay premiums.

 

The people paying cash also pay the premiums to people using cards...

[wwest5829]

I have been retired in Chiang Mai for over a decade. I have maintained USA based credit cards. My "Venture" card charges the baht to USD without adding any additional fee. Plus, I earn "points" on the dollars spent. I use the card only for hospital, or other major charges (car repair, for example). As a result during our April trip to the USA, the total hotel bill for a weeklong stay in the Disneyworld area of over $1000.00 USD was paid by applying earned points ... $1K USD free!

[AgMech Cowboy]

If you have cash, us it. Transfer the money with WISE, unless like a friend of mine you get your money transferred free. (Yeah, it shocked me too. Long, long time customer with large account at BOA and gets his transfer 'free' each month.)

 

I wish I'd have 'trusted' WISE a year or so before I did.

[dlclark97]

On 8/28/2023 at 11:48 AM, TravelerEastWest said:

Should I pay cash or use my American visa card (THB to USD) at a large store or hospital?

 

I ask as I was told that there would be no extra charge but I always seem to get a 3% charge.

 

My rate for transferring money is probably just under 1%

A lot depends on the card you have.  My best has no foreign transaction fee (usually 3%) and I also get 2% back on every purchase.  Some Thai merchants (not all) also tack on a 3% fee for you to use a CC.  I tend to use it only for large purchases such as a quarterly hospital visit.  I never use it where it is taken out of me sight to be processed.  Did that once at a gas station here with a card that had not be used in many months.  Two months later I apparently had purchased several thousands of dollars' worth of high-end stereo equipment in Florida.  Issue resolved but a little time and effort was required.  I also build on my American Airlines mileage at 1 point per dollar.  Have an AA card that says I am a 2 million miler.  Other airline cards but not so much.  Have used miles for travel many times and saved a bunch!

Edited August 31, 2023 by dlclark97
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[yankyoakum]

prior to retiring here did some checks and found Schwab Amex and Costco Visa do not charge foreign transaction fees, always use them and request all sales in Thai Baht, works well so far. 

[DFPhuket]

You need to get a US credit card with no foreign transaction fees. A large number charge a 3% fee on any foreign transaction. It sounds like yours is one of those. 

 

I use a Capital One card. They have a card with no annual fee and 1% cash back or another with a $95 annual fee with 2% cash back. There are other options at other banks. The exchange is the mid-market rate, which is a very good rate (basically what you see on any of the online currency conversion rate). Twice I've had no issues getting a charge back for a service that wasn't delivered. 

 

Using my card here whenever I can means I don't need to have as much money in Thailand and it's basically a "free" money transfer. I use it worldwide and get hundreds of dollars cash back. 

[khunPer]

On 8/28/2023 at 6:48 AM, TravelerEastWest said:

Should I pay cash or use my American visa card (THB to USD) at a large store or hospital?

 

I ask as I was told that there would be no extra charge but I always seem to get a 3% charge.

 

My rate for transferring money is probably just under 1%

Cash might be cheapest for you, especially if you have a Thai bank account to transfer your funds into.

[Everyman]

7 hours ago, DFPhuket said:

You need to get a US credit card with no foreign transaction fees. A large number charge a 3% fee on any foreign transaction. It sounds like yours is one of those. 

 

I use a Capital One card. They have a card with no annual fee and 1% cash back or another with a $95 annual fee with 2% cash back. There are other options at other banks. The exchange is the mid-market rate, which is a very good rate (basically what you see on any of the online currency conversion rate). Twice I've had no issues getting a charge back for a service that wasn't delivered. 

 

Using my card here whenever I can means I don't need to have as much money in Thailand and it's basically a "free" money transfer. I use it worldwide and get hundreds of dollars cash back. 

Mathematics and financial literacy vindicate credit card use. Cash is not king. Credit is king, and understanding it is a valuable financial tool. 

[NextG]

9 hours ago, AgMech Cowboy said:

If you have cash, us it. Transfer the money with WISE, unless like a friend of mine you get your money transferred free. (Yeah, it shocked me too. Long, long time customer with large account at BOA and gets his transfer 'free' each month.)

 

I wish I'd have 'trusted' WISE a year or so before I did.

Free, but at a lower exchange rate, depending on the amount transferred. 

[NextG]

7 hours ago, DFPhuket said:

You need to get a US credit card with no foreign transaction fees. A large number charge a 3% fee on any foreign transaction. It sounds like yours is one of those. 

 

I use a Capital One card. They have a card with no annual fee and 1% cash back or another with a $95 annual fee with 2% cash back. There are other options at other banks. The exchange is the mid-market rate, which is a very good rate (basically what you see on any of the online currency conversion rate). Twice I've had no issues getting a charge back for a service that wasn't delivered. 

 

Using my card here whenever I can means I don't need to have as much money in Thailand and it's basically a "free" money transfer. I use it worldwide and get hundreds of dollars cash back. 

Correction: The exchange rate is the VISA rate. https://usa.visa.com/support/consumer/travel-support/exchange-rate-calculator.html

[CartagenaWarlock]

13 hours ago, radiochaser said:

Not mine.   I accrue points for flying from purchases.   I have a credit card account almost 30 years old.   It has one of the best point plan for dollars spent of just about any credit card in the U.S. of A..  I have not paid full price for a ticket to fly for several years by using my accumulated points for my tickets.   Last three years I have only flown business using my points.   I do pay fees which are less than $200.00 for the business class tickets.   I pay that with the same credit card, which earns even more points.  

Maybe you can convert your points to cash. I get paid cash to the tune of $1200/year and also I get cash for one year at 3% and then invest it to make more money. 

[radiochaser]

35 minutes ago, CartagenaWarlock said:

Maybe you can convert your points to cash. I get paid cash to the tune of $1200/year and also I get cash for one year at 3% and then invest it to make more money. 

I can save more money using the mileage points to fly.   At 3% I would only get between $1800.00 to $2200.00 back from the credit card company.   

 

Using my mileage points to fly, I get a ticket for a round trip business class ticket to Thailand, minus the less than $200.00 in fees.   The last time my wife bought a round trip ticket to Thailand, she paid almost $10,000.00!!

Edited August 31, 2023 by radiochaser

[Lorry]

Cash.

 

First, why do I have to let the CC company know which hotels and hospitals I use? So that they can monetize my data (sounds nicer than "sell", doesn't it)?

 

Second,  I use cheap hotels,  small places in the provinces,  even if in theory they accept a foreign CC, why should I torment the sweet sleepy receptionist at midnight with something she is not familiar with? 

 

As for hospitals: I have heard enough horror stories about the way big international hospitals refund the deposit people paid by CC. 

"We will send the refund to your CC in 2 weeks." (commonly said to tourists who 2 weeks from now will have left Thailand - it's not true BTW, but this sentence leads to a lot of bad feelings)

 

I once paid a hospital deposit with my Thai bank card. Not a good idea, either.  When I was discharged they couldn't transfer it back to my bank account. The cashier asked me to accept 80,000 in cash.  I said,  no,  if you give me 80,000 in cash I will just have to go down to the bank in  your lobby and  deposit it into my bank account.  Please transfer it.  She answered "Then I have to take  80,000 cash out of my till, go down to the bank in our lobby, and deposit it into your account.  I do it if you insist"

I accepted the cash. 

 

Edited August 31, 2023 by Lorry

[TravelerEastWest]

Thank you for all the ideas!

 

At first I though OK just stick to cash except for emergencies.

 

But I do get around 3% cash back but pay a 3% fee so its a wash...

 

I will consider in the future a new visa card with no fees but has cash back.

 

Also I have a swab account but dont use the debit card feature maybe I will in the future...

[jaideedave]

On 8/28/2023 at 4:44 PM, impulse said:

If you do pull out your int'l credit card at (for example) Bumrungrad, the next question will be "do you want to pay in THB or USD?"  Ask me how I know that...

 

I haven't a clue what the best answer is.  Fortunately, I just pick up some scripts at Bumrungrad amounting to $400 USD or so.  So I don't sweat the fees.

 

But someone may want to chime in with the right answer.

Excellent question,,THB vs USD..I didn't know either...here's what I found..

"If you have the chance to pay in local currency or US dollars, always choose local currency!" 

"the merchant will charge you what's called a Dynamic Currency Conversion (DCC) fee"

Now we both know..great to know.