webfact Posted March 4 Share Posted March 4 From May 1st, Thai commercial banks will charge their customers a 1% Dynamic Currency Conversion (DCC) fee for making cash withdrawals abroad. A similar fee will also be levied on the use of Visa or Master credit cards for transactions made abroad for goods or services or through online stores which are registered outside Thailand. For instance, paying a Netflix membership fee, buying products through TikTok, Alibaba or Amazon or making hotel bookings via Agoda will also be subject to the 1% DCC fee. The banks claim that the DCC charge is in line with credit card practices for transactions abroad adding, however, that customers have an option to use “travel cards” without any extra fees. Source: Thai PBS 2024-03-05 - Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here. Get our Daily Newsletter - Click HERE to subscribe 1 6 Link to comment Share on other sites More sharing options...
Popular Post HappyExpat57 Posted March 4 Popular Post Share Posted March 4 Does the greed never end? 4 1 2 2 10 Link to comment Share on other sites More sharing options...
Purdey Posted March 4 Share Posted March 4 Is this the norm in other countries? Link to comment Share on other sites More sharing options...
Popular Post Mike Lister Posted March 4 Popular Post Share Posted March 4 17 minutes ago, Purdey said: Is this the norm in other countries? Yes, very common with UK and US banks 2 1 6 3 Link to comment Share on other sites More sharing options...
Popular Post soi3eddie Posted March 4 Popular Post Share Posted March 4 2.75% currency exchange fee (or more) charged by most UK banks for overseas card usage. 1% a bargain and surprised that Thai banks weren't already charging. 1 1 4 4 Link to comment Share on other sites More sharing options...
Spock Posted March 4 Share Posted March 4 20 minutes ago, soi3eddie said: 2.75% currency exchange fee (or more) charged by most UK banks for overseas card usage. 1% a bargain and surprised that Thai banks weren't already charging. Not sure what Australian banks charge for overseas card usage? Link to comment Share on other sites More sharing options...
Popular Post jacko45k Posted March 4 Popular Post Share Posted March 4 1 hour ago, HappyExpat57 said: Does the greed never end? Where banks are concerned...... greed is good, as Mr Gekko said! 2 1 1 2 Link to comment Share on other sites More sharing options...
Popular Post Mike Lister Posted March 4 Popular Post Share Posted March 4 1 hour ago, HappyExpat57 said: Does the greed never end? 10 minutes ago, jacko45k said: Where banks are concerned...... greed is good, as Mr Gekko said! It's fun to bash but let's be fair and reasonable shall we! Credit card spending abroad by Thai's has been low by comparison to other countries but has grown year on year, today, the amount spent is sizeable. Previously, Thai banks were happy to make their money from credit cards, solely based on domestic usage hence the ability to use the cards overseas, free of charge, was a perk. But using the card overseas comes at a cost to the issuing bank, currency exchange, overseas levies and settlement costs, all come at a price. I'm surprised the Thai banks have waited this long before acting. https://www.ceicdata.com/en/thailand/credit-card-statistics/credit-card-spending-value-abroad-usage 1 1 2 1 Link to comment Share on other sites More sharing options...
Popular Post hotchilli Posted March 4 Popular Post Share Posted March 4 2 hours ago, HappyExpat57 said: Does the greed never end? It grows exponentially 1 3 Link to comment Share on other sites More sharing options...
Popular Post HappyExpat57 Posted March 5 Popular Post Share Posted March 5 1 hour ago, Purdey said: Is this the norm in other countries? I have several credit cards (one main, one backup) for using in Thailand. I made sure they did NOT include a Foreign Transaction Fee before getting them. Banks make money every time you use a credit card. This new charge from Thai banks is just a money grab. 1 5 Link to comment Share on other sites More sharing options...
Popular Post Mike Lister Posted March 5 Popular Post Share Posted March 5 1 minute ago, HappyExpat57 said: I have several credit cards (one main, one backup) for using in Thailand. I made sure they did NOT include a Foreign Transaction Fee before getting them. Banks make money every time you use a credit card. This new charge from Thai banks is just a money grab. "Banks make money every time you use a credit card". I'm shocked, mortified even! 🙂 5 Link to comment Share on other sites More sharing options...
bamnutsak Posted March 5 Share Posted March 5 I'm surprised Thai banks/credit card issuers aren't charging Foreign Transaction Fees. I thought that 2.5% was pretty standard here? 4 hours ago, webfact said: however, that customers have an option to use “travel cards” without any extra fees The SCB Planet card is one such option. https://www.scb.co.th/en/personal-banking/cards/prepaid-cards/planet-scb-card.html 1 Link to comment Share on other sites More sharing options...
1happykamper Posted March 5 Share Posted March 5 I'm seeing a trend here.... 555 1 Link to comment Share on other sites More sharing options...
jacko45k Posted March 5 Share Posted March 5 I know last time I tried to use my Thai CC (in Bali many years ago in the hotel), it bounced and the trusty UK one had to come out. It has worked well for me buying air tickets paid in baht on-line. This is something the UK CC does I believe......I tested it at an ATM in Thailand when it got reissued and it was an expensive withdrawal Link to comment Share on other sites More sharing options...
Chassa Posted March 5 Share Posted March 5 Thai banks give you a downgraded exchange rate too! 1 2 Link to comment Share on other sites More sharing options...
JoePai Posted March 5 Share Posted March 5 2 hours ago, Spock said: Not sure what Australian banks charge for overseas card usage? Why don't you ask your bank ? 1 Link to comment Share on other sites More sharing options...
Wobblybob Posted March 5 Share Posted March 5 I thought 'free banking' only is applicable to your province your bank is located. Don't we get charged a fee when we leave that province? Link to comment Share on other sites More sharing options...
bamnutsak Posted March 5 Share Posted March 5 (edited) 16 minutes ago, Chassa said: Thai banks give you a downgraded exchange rate too! I think the exchange rate is defined by Visa or MC, unless you specifically choose DCC. It is for me anyway. As my cards are issued in the U.S., and all have 0% Foreign Transaction Fees, I use this site... https://usa.visa.com/support/consumer/travel-support/exchange-rate-calculator.html https://www.nerdwallet.com/best/credit-cards/no-foreign-transaction-fee Edited March 5 by bamnutsak 1 Link to comment Share on other sites More sharing options...
SAFETY FIRST Posted March 5 Share Posted March 5 5 hours ago, webfact said: For instance, paying a Netflix membership fee, buying products through TikTok, Alibaba or Amazon or making hotel bookings via Agoda will also be subject to the 1% DCC fee. I heard the 1% charge was only for those who choose to pay in Thai baht not local currency. 1 Link to comment Share on other sites More sharing options...
JonnyF Posted March 5 Share Posted March 5 18 minutes ago, Wobblybob said: I thought 'free banking' only is applicable to your province your bank is located. Don't we get charged a fee when we leave that province? That's what I was thinking as well. I'm sure I get charged (I think 20 Baht) every time I withdraw money from an ATM outside Bangkok. 1 Link to comment Share on other sites More sharing options...
Popular Post freeworld Posted March 5 Popular Post Share Posted March 5 Banks looking at all ways to extract their increasing cut and leech off peoples money by rules they make and increase at their will, all in cooperation with govt regulators. Yes, can avoid that and carry cash but then the exchange rates are manipulated so that the exchange rate is worse off and there is the additional hassle of declaring and proving the source of funds through customs or the money will be confiscated by the govt customs. 3 1 3 Link to comment Share on other sites More sharing options...
Wrwest Posted March 5 Share Posted March 5 3 hours ago, Mike Lister said: Yes, very common with UK and US banks Just my experience on the two USA credit cards I use here. No charges for use here (CapOne and Amex). Link to comment Share on other sites More sharing options...
BenStark Posted March 5 Share Posted March 5 3 hours ago, soi3eddie said: 2.75% currency exchange fee (or more) charged by most UK banks for overseas card usage. I'm sure Thai banks do that already. When I pay something on Alibaba or Aliexpress, I have the choice to pay in US$ or they do the exchange to Thai baht, which is of course a bad exchange rate. I pay with my Kasikorn virtual debit card. If I complete the transaction in US$, my account is debited more Thai baht than if I complete the transaction at the unfavourable Ali exchange rate 1 Link to comment Share on other sites More sharing options...
digbeth Posted March 5 Share Posted March 5 This is not just the 1%, but the DCC currency conversion rate which is worst deal always In this case the service providers like Netflix of Apple has decided to set their price in Thai Baht already and are prepared to absorb any fluctuations and the DCC rates shouldn't apply 1 Link to comment Share on other sites More sharing options...
Karma80 Posted March 5 Share Posted March 5 3 hours ago, Spock said: Not sure what Australian banks charge for overseas card usage? Varies by card and bank. There are now only very few options for AU no international fee credit cards, most will slug you 2.5%-3%. Some debit cards can be int transaction charge free. Australian banks are some of the worst for this, and one of the few countries where even paying by card domestically will allow the merchant to pass on a transaction fee to you for the privilege of paying them. I'm surprised it's taken Thai banks so long to work out they can get free money. 1 Link to comment Share on other sites More sharing options...
khunjeff Posted March 5 Share Posted March 5 36 minutes ago, JonnyF said: That's what I was thinking as well. I'm sure I get charged (I think 20 Baht) every time I withdraw money from an ATM outside Bangkok. That's true if you take out cash using your debit card. You will not pay a fee if you use the cardless withdrawal option on the ATM. 1 1 Link to comment Share on other sites More sharing options...
JonnyF Posted March 5 Share Posted March 5 6 minutes ago, khunjeff said: That's true if you take out cash using your debit card. You will not pay a fee if you use the cardless withdrawal option on the ATM. OK that's good to know, thanks... 1 Link to comment Share on other sites More sharing options...
khunjeff Posted March 5 Share Posted March 5 53 minutes ago, SAFETY FIRST said: I heard the 1% charge was only for those who choose to pay in Thai baht not local currency. That seems to be the case: "When travelling abroad and using credit cards for purchases at international stores, individuals will be presented with the option of paying in the local currency of the country or baht. If the user chooses to pay in baht, an additional 1% fee will be charged." Of course, choosing to pay in baht overseas via DCC is already a terrible idea, since it will be quite a bit more expensive than opting for local currency. And no, this is not a way for Thai banks to cover currency conversion costs. If you choose DCC overseas, the bank in that country will do the conversion. If you choose local currency, conversion will be done by Visa or Mastercard. In neither case will the Thai bank do any conversion or bear any exchange rate risk - the transaction will be submitted to them in baht. https://www.nationthailand.com/blogs/thailand/economy/40036058 1 Link to comment Share on other sites More sharing options...
lordgrinz Posted March 5 Share Posted March 5 I use my Amazon Prime Visa card, which I believe has no foreign transaction fees, though I can't remember the last time I used it here. Everything here is paid using my wife's CC's or more often by using my SCB account for online payments or purchases. I pay almost everything using my SCB app, haven't been in any situation where I really needed the Amazon Prime card here, the SCB app is super convenient to make everyday purchases. Link to comment Share on other sites More sharing options...
ravip Posted March 5 Share Posted March 5 The amount of 'fees' that banks charge are ridiculous! Very soon banking might become so expensive, only the rich might be able to afford it. 2 Link to comment Share on other sites More sharing options...
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