Thailand Central Bank Blocks Additional 1% Fee on Credit Cards

[webfact]

 

The Bank of Thailand has discarded a proposed 1% fee on credit cardholders. This decision was prompted when card issuers announced they would dismiss the 1% fee for transactions in baht to overseas traders and online shopping sites.

 

In March, the card issuers voiced their intention to introduce a 1% charge for foreign currency conversion on payments made overseas with Visa and Mastercard. This fee, known as dynamic currency conversion (DCC), was intended to begin on May 1.

 

This initiative invited criticism from Thai cardholders, pushing the central bank to pursue fair and reasonable banking fees. The fee was proposed due to the rising costs card issuers faced from increased overseas and online payments on foreign platforms.

 

An unnamed banking source hinted that card issuers might permanently dismiss the fee, with the central bank encouraging alternative payment methods. Kulthirath Pakawachkrilers, president of the Thai E-commerce Association, expressed concerns about the impact of DCC on consumers and suggested other payment options such as e-wallets.

 

She also pointed out numerous platforms impacted by the DCC, including Spotify, VIU, Agoda, Booking.com, Expedia, Klook, Airbnb, Trip.com, Facebook, Google, TikTok, Paypal, Alipay, eBay, Amazon, Alibaba, and Taobao. However, she mentioned that platforms such as Shopee (Thailand), Lazada (Thailand), and Grab Taxi (Thailand) should remain untouched.

 

Bank of Thailand's report last year showed e-payments saw a 10.4% increase from 2022, reaching 28.8 trillion baht (US$ 783 billion). Card payments were up by 8.2% from 2022, bringing the value to 5.9 trillion baht (US$ 160 billion).

 

File photo for reference only

 

-- 2024-05-04

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[Mike Lister]

@george

 

This is the answer you sought regarding True Wallet and foreign cards.

[Bangkok Barry]

 

Now how about 'blocking' the fee for using a foreign ATM card in Thailand, Thanks.

[Cabradelmar]

Unless your card issuer is a Thai bank, and you use your Thai bank issued card overseas, this means nothing (to 90% of all card holders of Thai bank issued credit cards).

[Chongalulu]

DCC is an option the retailer offers you to be charged in your home currency at a worse rate than the card issuer charges. Simply ALWAYS say no! Charge me in baht. 

[hotchilli]

3 hours ago, webfact said:

This fee, known as dynamic currency conversion (DCC), was intended to begin on May 1.

Local lingo gouging.

[natway09]

I thought most expats that really "live here" would be using local CC's as I am & using them overseas as I do

 

[Skeptic7]

2 hours ago, Bangkok Barry said:

 

Now how about 'blocking' the fee for using a foreign ATM card in Thailand, Thanks.

Right. Or at least bring it down to something close to planet Earth...instead of in the greedy RIPOFF exosphere❗

[AhFarangJa]

3 hours ago, Skeptic7 said:

Right. Or at least bring it down to something close to planet Earth...instead of in the greedy RIPOFF exosphere❗

Yes, but this is the land of scam the farang for everything we can grab off them. If they had their way we would see huge bins at the arrivals in the airport where we would deposit our wallets before being herded back onto the plane.

[kickstart]

7 hours ago, Bangkok Barry said:

 

Now how about 'blocking' the fee for using a foreign ATM card in Thailand, Thanks.

Long story short, for the first-time last week I had to use my UK bank cark to make a cash withdraw 5.1 % was Kasikorn charge, then UK bank charges.

Glad I am not a tourist here on holiday using a Uk bank card or any other bank card, to withdraw cash ... an expensive holiday.

[Lee65]

What's the source for this story?

[Aviatorhi]

6 hours ago, natway09 said:

I thought most expats that really "live here" would be using local CC's as I am & using them overseas as I do

 

Find me some 0% cards here and I'll start using them - until then... no thanks.

[ThaiFelix]

The whole world economy is failing.  Capitalism is failing.  The genocidal war in the ME and Putins war with Ukraine is seriously affecting costs worldwide.   Governments are struggling with aging populations.  There is not enough money to go around.   The elites and corporations that control the governments wont budge so we the ordinary folk will have to pay to prop it all up and it is coming in the form of new fees, charges etc every day.

 

I dont get a pension from my Australian govt coz they say I have been away too long even though I followed all the rules, paid my taxes and thought for 50 years I was putting away for my future.  A new rule.  I see the Brits now are also holding back pensions.  My bank in Australia now charge a fee, on top of the normal transfer fees, on any funds destined for outside Australia.  So when I transfer living expenses here I have to pay more.  My Thai bank now levies a charge on any puchase made overseas such as Amazon, AliExpress etc.  The Thai Post Office is now charging VAT on any goods arriving from overseas on top of normal duties etc. And it goes on.  New charges every day.

 

 

[Sydebolle]

The surge on "e-payments" has a different background, if you ask me. It has to do also with Thailand's retail industry being disinterested, untrained, incoherent in pricing and you sometimes get the feeling, that you're disturbing the retail staff (on their smartphone) with your enquiry on something! 

For argument's sake; call a shop and ask, if they carry X, Y or Z. You may even know, that they carry the product but you want to enquire, if that product is in stock or what the product costs now.

In 99 out of 100 cases you will either asked to:
- repeat your enquiry by using text through LINE (MegaHome, GlobalHouse)
- stay online forever (Boonthavorn, Central Dept Store) until the line drops
- or they say "yes, have" (Tops Supermarket) just to get you off the phone. Latter has resulted, more than once, in visiting the store just to hear that this product has been out of stock for months without any reordering intention. The staff (I always ask for the staff's name) who gave you the wrong information is on "lunch break" or "gone home for the day".

On simpler, day-to-day items it happened with shaving cream and toothpaste (Lotus's), deodorant sticks (Big C Extra) and tampons (both Watson and Booths) for the Missus. And no, I speak fluent Thai and it is not a linguistic failure. 

I gave up quite some time ago and the consequence today is, that I order anything available online ....... online and that invokes an "e-payment". Only fresh food items are sourced in stores; latter is available online as well but a) I have the time to shop myself and b) I can choose not to take the most rotten piece off the shelf. 

Bottomline is, I get EXACTLY the product I want without wasting my time and get it delivered to my doorstep. On top of it the product usually costs less (despite postage) as the inefficient, unfriendly and incompetent retail trade is cut out completely! 

[Scouse123]

Just a question.

 

When I am withdrawing in THB from a USD account based in Cambodia, in Thailand, it has now started asking me if I want with the bank's conversion or without conversion.

 

I have been pressing ' without conversion ' as I felt the bank would be giving a poorer rate, am I right or wrong to do this?

 

And next question is, regardless of credit card I am using, AN members are saying ALWAYS opt to pay in the local currency, is that correct?

[timendres]

5 hours ago, ThaiFelix said:

Capitalism is failing.

 

Capitalism is not "failing". Governments are.

[Bill97]

2 hours ago, Scouse123 said:

Just a question.

 

When I am withdrawing in THB from a USD account based in Cambodia, in Thailand, it has now started asking me if I want with the bank's conversion or without conversion.

 

I have been pressing ' without conversion ' as I felt the bank would be giving a poorer rate, am I right or wrong to do this?

 

And next question is, regardless of credit card I am using, AN members are saying ALWAYS opt to pay in the local currency, is that correct?

Yesx2