Credit card charges by merchants

[Briggsy]

I am going to buy a motorbike. I didn't really want to use the money I have in Thailand. So, I thought I might use a UK credit card I hold which has no charges for non-sterling purchases. It provides excellent value. I have used it in many countries.

 

However Mit Yon Pattaya and many other Thai merchants have a 3% surcharge on credit card transactions (Thai or foreign). On larger purchases, that makes it not worthwhile. I will stick to cash.

 

Does anybody know why they apply this surcharge. I assume they are just passing along the fees they have to pay with a little added padding for safety.

[NowNow]

17 minutes ago, Briggsy said:

I am going to buy a motorbike. I didn't really want to use the money I have in Thailand. So, I thought I might use a UK credit card I hold which has no charges for non-sterling purchases. It provides excellent value. I have used it in many countries.

 

However Mit Yon Pattaya and many other Thai merchants have a 3% surcharge on credit card transactions (Thai or foreign). On larger purchases, that makes it not worthwhile. I will stick to cash.

 

Does anybody know why they apply this surcharge. I assume they are just passing along the fees they have to pay with a little added padding for safety.

 

If it's a Halifax Clarity or similar, do over the counter withdrawals at your bank.

[Pattaya57]

1 hour ago, Briggsy said:

Does anybody know why they apply this surcharge. I assume they are just passing along the fees they have to pay with a little added padding for safety.

This surcharge has been around for as long as I can remember. In Australia your gas, electricity and council rates are all 1.5% higher if paid by credit card (same as airport duty free you would have seen on your way to Thailand)

 

Edited 19 hours ago by Pattaya57

[Briggsy]

2 hours ago, NowNow said:

 

If it's a Halifax Clarity or similar, do over the counter withdrawals at your bank.

Unless you know something I don't this is very dangerous advice.

 

From the Halifax website

"Interest charges will apply from the day you make a cash withdrawal."

 

I will use cash from my SCB a/c for now.

[KannikaP]

Last month I bought a Wave 125 for the Mrs, cash price Bht 59000.

Buy it on credit, 68000 PLUS THE INTEREST..

Wanted to buy it on my Nationwide C Card, no foreign transactions, or my Wise. Nooooo, top price again.

Paid CASH.

[treetops]

6 minutes ago, Briggsy said:

Unless you know something I don't this is very dangerous advice.

 

From the Halifax website

"Interest charges will apply from the day you make a cash withdrawal."

 

I will use cash from my SCB a/c for now.

 

Just pay it off as soon as it hits your account and any interest will be negligible.  Better still get a Barclaycard Rewards credit card and you'll have until the next bill to pay it off.

[NowNow]

33 minutes ago, Briggsy said:

Unless you know something I don't this is very dangerous advice.

 

From the Halifax website

"Interest charges will apply from the day you make a cash withdrawal."

 

I will use cash from my SCB a/c for now.

 

Dangerous? If you have a UK card, you have the means to pay it off. Can transfer same day. No interest.

Some cards don't charge if you pay your statement in full. Okay? Dangerous 😊

Edited 18 hours ago by NowNow

[jacko45k]

15 hours ago, Briggsy said:

Does anybody know why they apply this surcharge. I assume they are just passing along the fees they have to pay with a little added padding for safety.

You answered your own question.... why should they eat the 3% charge. They aren't supposed to but I got a similar hit  on a car service... I was too lazy to go find an ATM in the heat, and of course had no vehicle!

Edited 5 hours ago by jacko45k

[Jumbo1968]

It was common practice in the U.K. for retailers to charge extra when using a credit card, they said it was a charge from the bank. One of the benefits of being in the EU who outlawed the charge.

[Tropicalevo]

19 hours ago, Briggsy said:

Does anybody know why they apply this surcharge. I assume they are just passing along the fees they have to pay with a little added padding for safety.

It happens the world over and yes, they are passing on the charges.

They want the selling price in the till.

[SAFETY FIRST]

18 hours ago, Pattaya57 said:

This surcharge has been around for as long as I can remember.

Agree, long as I can remember. 

 

18 hours ago, Pattaya57 said:

In Australia your gas, electricity and council rates are all 1.5% higher if paid by credit card

Wow, I wasn't aware of this. 

 

Long ago when I was living in Australia, I had a GM credit card, I would spend $60000 on my credit card I'd accumulate $3000 off the price of a new car.  

 

I'd buy the wife a new car every 3 years, cheeky me would pay the deposit with credit card. 

 

No charges back then.

Edited 1 hour ago by SAFETY FIRST

[outsidetrader]

20 hours ago, Briggsy said:

I am going to buy a motorbike. I didn't really want to use the money I have in Thailand. So, I thought I might use a UK credit card I hold which has no charges for non-sterling purchases. It provides excellent value. I have used it in many countries.

 

However Mit Yon Pattaya and many other Thai merchants have a 3% surcharge on credit card transactions (Thai or foreign). On larger purchases, that makes it not worthwhile. I will stick to cash.

 

Does anybody know why they apply this surcharge. I assume they are just passing along the fees they have to pay with a little added paddin

 

[outsidetrader]

Indeed it is normal to add 3 % as thats what the bank charges the merchants .Foreighn CCs are the highest with Amex being even higher .So this is normal procedure in Thailand .