Found An Inexpensive Way To Transfer Money

[daeng1212]

A few years ago, I decided to transfer $150 from my Thailand bank account to my U.S. bank account. I checked with my Thai bank to see what the service charges would be, and they came to about $10. I thought that wasn’t too bad, so I did the transfer. Little did I know that two other banks –both U.S. banks – would also charge me for their service in the transfer – one for $15 and one for $20. So I ended up paying $45 in service charges for a $150 transfer (30%)! Since that time, I’ve looked for a better way to transfer money – I checked out Western Union (very expensive) and some kind of internet transfer that was also pretty expensive – and have finally figured out a cheap way to transfer money from my Thai bank account to my U.S. account. I thought I’d share this discovery with all you folks at thaivisa, since thaivisa has been a big help to me on several occasions. My method requires that you have a person in your home country who will help you with the transfer.

Here’s what I did: (1) Found a friend in my home country who I trust, who was willing to help me with the transfer. (The friend must live in a city that has a branch of the bank you use.)

(2) Bought a Be1st Visa Debit card from Bangkok Bank (300 baht). This is an debit/ATM card that can be used internationally. Here’s a webpage about it: http://www.bangkokbank.com/Bangkok+Bank/Pe...ard/default.htm (If you use a bank other than Bangkok Bank, check to see if it has an ATM card that can be used internationally.)

(3) Mailed the Be1st card to my friend in the U.S.

(4) Asked my friend to withdraw $xx from my Thai bank account with the Be1st ATM card, and then deposit that money into my U.S. account.

Total service charge for the transfers I made came to only 100 baht per transfer. No charge was made by the U.S. bank. My friend was able to withdraw $500 at one time with the Thai ATM card. (It wouldn’t let him withdraw $1000, though Bangkok Bank claims that you can withdraw more than that – I think it was either 50,000 baht [about $1500] or 100,000 baht [$300] at a time). I think there is also a fairly small currency conversion charge (Bankok Bank website says “A conversion charge will be added, but will not exceed 2.5% of the exchange rate applied.”)

[lopburi3]

It would be helpful if you advised the amount of baht you paid for the $500 withdrawal and the date so people could compare.

[craigt3365]

I do the same thing, but in reverse. I am helping my wife's brother get through university. He has an ATM card from my bank here in the US (USAA). It is attached to my savings account, which I automatically transfer a small amount of money each month to. He uses the ATM card in Bangkok and I only pay the 1% Visa/MC fee...USAA reimburses me the fees for up to 10 ATM transactions per month. I also use this method for myself while in Thailand (or anywhere for that matter). But my card is attached to my checking account. I can get up to $600/day...but that depends on the local ATM. In Argentina, we were limited to $100 per transaction, but $500 per day.

[flying]

yup I have done that both ways daengs & craigs.

It is efficient & cheap.

[JimGant]

He uses the ATM card in Bangkok and I only pay the 1% Visa/MC fee...USAA reimburses me the fees for up to 10 ATM transactions per month.

I've been with USAA for over 40 years, with no complaints -- except for their advertised ATM charges. I use the ATM card from my USAA savings account -- well, not anymore -- now I ACH the funds, which turns out to save me over 1%.

As you indicate, they advertise that they only pass on the 1% foreign transaction fee charged by the Cirrus network, the network their ATM cards use. However, if you check your account on the Internet, you'll find that immediately after an ATM withdrawal, they charge you what turns out to be a 'holding' rate -- to be followed two days later by an additional .8%. When I asked about that, I got a song and dance about Cirrus adding this rate on. Anyway, when all's said and done, you're paying about 1.6% *more* than the completely fee free cards from Schwab, ETrade, and Capitol One.

I believe USAA is using their own, favorable-to-them, exchange rate -- which they're allowed to do. But it amounts to hidden fees.....And a pox on an otherwise great company.

Check it out. I ran a spreadsheet for months -- and it was always another .8% added a few days later.

Oh, easy to set up with USAA an ACH conduit to Bangkok Bank.

And, yes, they reimburse ATM owner fees, as you mentioned. Have you done this since the 150bt fees went into effect?

[gk10002000]

That is an interesting way. I would suggest an even cheaper way. Just write a check to yourself. Mail it to the USA or have a friend that you trust a little bit fly to the USA and then mail it. The Thai Mail is a bit dodgy I will agree.

Now, if you don't have an account you can write checks on, I am sure you could buy a money order or a cashier's check with your Thai Baht and send that home to be mailed or even dropped off at your bank in the USA. Note that some USA banks have strange check cashing policies. Etrade bank, a very large bank no longer accepts any type of money order, US or otherwise. In addition, they do not accept checks from non-US banks, nor do they accept Western Union Wire transfers. Nuts, and hard to believe but it is true. I have been with them for a decade and they surprised the heck out of me last year with that one.

[theufo8mycow]

<please delete this>

Edited May 31, 2009 by theufo8mycow

[theufo8mycow]

Hmmm is that cheaper than using Western Union (www.westernunion.com)?

Western Union - No need for ATM cards, money will reach person within 15-30mins guaranteed. I just had to pay around USD$10 admin fees but it might have changed then and exchange rates would depend on where you use it.

[itsmeewan]

I have an English bank card here in Thailand where I pay £1.50 each time I withdraw which is not too bad although they also take about 2.5% in exchange rate. Only problem with having a foreign card here in Thailand is the Thai banks have started to charge 150THB for every withdrawal so for every £300 I withdraw I have to pay 1% to the Thai bank too. So for every £300 I take out I lose 4% of my cash and this is the best deal!!

I do so hate bankers.

[Paul123456]

Thanks for posting that - sounds like a good idea

[theufo8mycow]

yeah try out Western Union. It's easier and faster. Perhaps try doing Western Union at the Thai Post Office, not banks as they might fluctuate the currency rate. You may want to compare the admin charges and the currency exchange but as far as I know, the Western Union admin charges is pretty standard. Other charges is solely dependant on the agent/ merchant.

Receiver of the money does not have to pay for anything. Only the Sender. Hope this helps!

[peridot]

I use a Visa card from an American credit union to take cash advances here in Thailand. I pay no conversion fees, or any other fees. When the recent 150 baht per ATM transaction notice showed up, the credit union assured me that they do not pass on Visa International fees, so I don't pay that, either. When the cash advance shows up on my Visa account, I transfer the money from my American bank online, with no charges.

I haven't found a way to send money from Thailand to the USA with no charge, but Western Union only charged me $10 to send $250 recently.

[monkeyboots]

I thought I'd share this discovery with all you folks at thaivisa, since thaivisa has been a big help to me on several occasions.

Nice one Daeng - just what I've been after, if it works! I'm having to send back a small amount each month. I assume the person at the other end can use it as many times as necessary without problems?

[craigt3365]

Jim,

My wife's brother took out 1000 baht on May 26th (according to my USAA online activity). I only see a debit for $34.07. Nothing else. I checked the BOT's bank transfer rate and it was $34.28 for telex buying and $34.56 for selling on that date. So, it looks like USAA has a pretty good exchange rate. I looked on his savings account, where he takes out small amounts a few times a month, and there are no other charges. None at all other than the initial withdrawal. Not even that 150 baht fee others are talking about.

Please correct me if I am wrong, but it looks like USAA is doing a great job. I can get $500 in any country for only about $5. No matter what the local bank charges for ATM fees.

Much better than Western Union. Which I have used in the past, but don't anymore due to the extreme expense and hassle. Getting $500 to my wife's brother would cost $43 (in store) or $51 (internet) if I used WU. No way....

Anyway, if I am wrong, please let me know!

I do know there are a few financial institutions that eat the 1% visa charges (but only a few). But for me, USAA is my main financial institution. Checking, savings, IRA, insurance, investments, etc. So, I prefer to stay with them as I bank 100% from the internet.

Craig

[johnefallis]

yeah try out Western Union. It's easier and faster. Perhaps try doing Western Union at the Thai Post Office, not banks as they might fluctuate the currency rate. You may want to compare the admin charges and the currency exchange but as far as I know, the Western Union admin charges is pretty standard. Other charges is solely dependant on the agent/ merchant.

Receiver of the money does not have to pay for anything. Only the Sender. Hope this helps!

Western Union is THE most expensive way I have ever found or used, period. As much as 19-20%

[Brigante7]

I read a post on here, last year I think, and the OP had went in to his Thai bank and used his ATM card from his home country to transfer funds straight in to his Thai account. I believe the staff put the card in to the reader and he put his pin in to verify the amount and it was transfered instantly and all he had to pay was the charge for changing the money (Sorry can't remember how much it was). It it's that simple then pretty damm easy.

Brigante7.

[ivowatson]

yeah try out Western Union. It's easier and faster. Perhaps try doing Western Union at the Thai Post Office, not banks as they might fluctuate the currency rate. You may want to compare the admin charges and the currency exchange but as far as I know, the Western Union admin charges is pretty standard. Other charges is solely dependant on the agent/ merchant.

Receiver of the money does not have to pay for anything. Only the Sender. Hope this helps!

Western Union is THE most expensive way I have ever found or used, period. As much as 19-20%

Today, sent 1920 US$ (maximum allowed) via WU. Had to pay 71.340 thb.

With the US$ at 33.54 means 71.340 - 64.397 = 6973 thb. charges.

Is about 11% if I'm right but still quite expensive.

Edited June 3, 2009 by ivowatson

[JimGant]

My wife's brother took out 1000 baht on May 26th (according to my USAA online activity). I only see a debit for $34.07.

Craig,

Is that $34.07 still showing -- or has it gone up any since you last checked? With me, I get the initial charge, which is about a 1% fee, same as what you got above (using 34.42 as the Cirrus wholesale rate for that day). Then, about two days later, another .8% is tacked on. The initial and subsequent entries read the same in English (i.e., there's nothing about 'pending' on the initial), but the only difference is the added on charge.

Are you using a savings account ATM card, or a checking account? (mine's a savings).

This will be interesting if you're NOT getting hit with that add-on .8%.... (I always get 25000, but I doubt you're getting a discount for smaller amounts).

And, yes, USAA is tops -- but this .8% really bugs me.

[craigt3365]

Jim,

It is still 34.07...but I will research this on the next transaction. I will look at it the day he takes the money out, and then check it out a week later...I will let you know what I find out!

Craig

[daeng1212]

It would be helpful if you advised the amount of baht you paid for the $500 withdrawal and the date so people could compare.

My $500 transfer on April 24 cost 18,072 baht (+ 12 satang), which figures to 36.144 baht per dollar. According to www.xe.com, the exchange rate that day was 35.36 baht to the dollar (but I don't know at what rate Thai banks were selling U.S. dollars that day, which I assume would be below the flat international exchange rate). The increase from 35.36 to 36.144 is 2.222%. Or, looked at another way, $500 exchanged at the international exchange rate on that day would have equalled 17, 680 baht, which would indicate an addition (in effect) of 392 baht to equal the amount deducted from my account (18,072 baht). Even so, this 392 baht added to the 100 baht service charge comes to 492 baht, which is less than 3% of the amount transferred. The next time I transfer money, I want to see what the Thai rate for selling dollars is for that day, and see if that equals the amount deducted from my account.

(Sorry I'm so late responding to this request.)

[daeng1212]

I thought I'd share this discovery with all you folks at thaivisa, since thaivisa has been a big help to me on several occasions.

Nice one Daeng - just what I've been after, if it works! I'm having to send back a small amount each month. I assume the person at the other end can use it as many times as necessary without problems?

Yes, as far as I know, there isn't any limit on how long the Be1st Visa card can be used, though they may limit the number of times it can be used in one day.

[craigt3365]

I checked the statement for last month. I was charged a little less than 1% for what was withdrawn. And NO ATM fees. USAA is awesome!

[JimGant]

I checked the statement for last month. I was charged a little less than 1% for what was withdrawn....

Was that an ATM withdrawal against their checking account -- or their savings account?

[craigt3365]

It was a savings account for him, but I also checked my checking account. We were in Argentina 2 months ago and the rate is the same.

[keo1976]

Anyone use HSBC in town?