Foreign Credit Card % fee

[zorrow]

I tried buying a motorbike at a reputable motorbike dealership and was initially told a credit card fee of 3%. applies 

 

After handing my credit card over for the transaction to proceed I was then told it was now 4% for Foreigner credit cards. Is this a common practise at reputable large dealerships?

[retarius]

Go somewhere else and tell them you are going to use a credit card and ask if there is a fee. If they say yes, either don't use the card and pay cash, or go somewhere else again. 

[scubascuba3]

Shouldn't use it if they charge 3-4%, just a rip off

[gargamon]

4% to the dealer. Plus likely 3% foreign transaction fee from your home country bank, unless you have one of the few that don't charge that fee.

 

Are you sure you want to do that? 

[Celsius]

I think it is a good deal.

[impulse]

Don't just look at their % fee.  Also pay attention to the exchange rate.  Plus any fees your bank back home is going to add.

 

Then compare that to your cost of getting the amount in cash (unless you have THB laying around).

[CartagenaWarlock]

1 hour ago, gargamon said:

unless you have one of the few that don't charge that fee.

In the USA, they now have hundreds that don't charge foreign transaction fees. Most banks have cards that don't charge foreign transaction fees. 

[CartagenaWarlock]

2 hours ago, zorrow said:

I tried buying a motorbike at a reputable motorbike dealership and was initially told a credit card fee of 3%. applies 

 

3% for 2K USD purchase is $60 or 2000 baht. If you are getting 1% back and no transaction fees from your bank, it is $30 extra. Why do you want to use credit cards? If your card is giving one year interest free purchase (I get lots offer like that), than it may be OK, otherwise it will be an expensive purchase at high credit card interest rate. If you intend to clear it before it's due, then why not use cash? 

Edited August 30, 2023 by CartagenaWarlock

[zorrow]

Thanks to all contributions, all comments helpful.

[circa02]

4% is not uncommon just passing along the costs

Edited September 1, 2023 by circa02

[Everyman]

On 8/30/2023 at 6:55 PM, CartagenaWarlock said:

In the USA, they now have hundreds that don't charge foreign transaction fees. Most banks have cards that don't charge foreign transaction fees. 

Some banks (Capital One) have no cards at all that charge the foreign transaction fee. 

[bamnutsak]

It is unclear what this particular dealer meant when they said they charge 3% for processing the credit card charge, or 4% for a foreign-issued card?

 

Some merchants here do charge extra for processing credit card charges as they do not have any processing agreements in place.

 

And your credit card provider may also charge an extra percentage, often 3%, for foreign transactions. Checks the terms on your card.

 

I suspect that most motorbikes are financed, so in essence the lender pays the dealer in cash (direct bank transfer). For those that can afford it, they pay in cash or direct bank transfer.

 

 

 

 

[KhunLA]

On 8/30/2023 at 4:21 PM, zorrow said:

I tried buying a motorbike at a reputable motorbike dealership and was initially told a credit card fee of 3%. applies 

 

After handing my credit card over for the transaction to proceed I was then told it was now 4% for Foreigner credit cards. Is this a common practise at reputable large dealerships?

I like it, and wish they, all vendors would pass the fees to the user.   Instead of raising their prices for everyone, to cover that overheard.

 

All people do that use CC for purchases is raise the price of goods, and give the fees to banks for an unnecessary service.