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 yesterday at 09:36 AM 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 22 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 9 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 5 hours 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 .

[AgMech Cowboy]

20 hours ago, Briggsy said:

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

IMHO, that is the best way to manage the purchase.  I move my money in using WISE.com.  The credit cards can't even come close to the X-rate when converting a Thai purchase to GBP or USD.  (I've got one card out of 3 that doesn't charge an international purchase fee, but I've decide to quit using it. Too expensive).

[NowNow]

13 minutes ago, AgMech Cowboy said:

IMHO, that is the best way to manage the purchase.  I move my money in using WISE.com.  The credit cards can't even come close to the X-rate when converting a Thai purchase to GBP or USD.  (I've got one card out of 3 that doesn't charge an international purchase fee, but I've decide to quit using it. Too expensive).

 

You don't understand what you are talking about. Best to hold back on giving advice since you don't. The right CCs should come in very close to your 'X-rate'