Debit Or Credit Card?

[Adelita]

What is the best card to have with a bank account in Thailand?

The account at Bangkok Bank comes with a debit card, but this is not accepted at most stores, especially international or online orders.

Is it possible to apply for a credit card, as a dual citizen, and as a student? The account at Bangkok Bank is already registered as a Thai citizen, so the application would be processed as such. Also, would a monthly allowance that meets the requirements for income be accepted over an income slip, including with no credit history and as a student?

Or can a debit card be used as a credit card at international stores as well?

Also, please keep all replies ON TOPIC only. Thanks.

[MJo]

Debit card will work everywhere in Thailand and if it is Visa or Master debit should work overseas as well.

I have K-Bank Visa debit, use it locally and in ATM's overseas no problem. I can not use it online but it is possible if you apply for the "web card" with them.

Naturally credit card say from HSBC would be more widely recognized overseas, however i understood from your previous posts that you really don't need credit. It is also to be noted that it is extremely expensive credit in case you do not pay full balance due and go into the credit.

[bkkjames]

What is the best card to have with a bank account in Thailand?

The account at Bangkok Bank comes with a debit card, but this is not accepted at most stores, especially international or online orders.

Is it possible to apply for a credit card, as a dual citizen, and as a student? The account at Bangkok Bank is already registered as a Thai citizen, so the application would be processed as such. Also, would a monthly allowance that meets the requirements for income be accepted over an income slip, including with no credit history and as a student?

Or can a debit card be used as a credit card at international stores as well?

Also, please keep all replies ON TOPIC only. Thanks.

Get the AMEX Charge card from Bangkok Bank. Must be paid in full every month, no interest charges, no limit.

[Adelita]

If a debit card or normal bank card is paid from the account directly, then what is the point of a credit card?

The 'credit' that is issued to the consumer is for 1 month only, and a fee and interest must be paid on top of that, along with what you would have paid anyways? Why would anyone want a credit card at all?

It seems like it is just packaged money, that is packaged along with superfluous things, and credit for extra just for 1 month. Why do these exist at all?

[bkkjames]

If a debit card or normal bank card is paid from the account directly, then what is the point of a credit card?

The 'credit' that is issued to the consumer is for 1 month only, and a fee and interest must be paid on top of that, along with what you would have paid anyways? Why would anyone want a credit card at all?

It seems like it is just packaged money, that is packaged along with superfluous things, and credit for extra just for 1 month. Why do these exist at all?

well Adelita, in simple terms = profit for the Banks that issue them. By the way, don't get confused between charge cards and credit cards, not the same.

do yourself a favor, forgo the purchase for one month, save up the money, then pay cash for it.

[Texpat]

The principle borrowed needn't be paid immediately. It can be repaid in days, weeks, months, or years. Smart people repay it as soon as possible.

Credit card purchases are loans. You're borrowing money you don't have.

I've carried the same credit card since 1988.

It's great for emergencies.

If I had to fly home tomorrow for an emergency, I likely wouldn't have the cash laying around for air tickets, car rental, hotels.... that I would require.

But I could use my credit card and take care of everything. If I cash out some investments and repay the amount borrowed in a timely manner, it costs next to nothing.

That's what credit cards are for.

Edited June 8, 2009 by Texpat

[trogers]

What is the best card to have with a bank account in Thailand?

The account at Bangkok Bank comes with a debit card, but this is not accepted at most stores, especially international or online orders.

Is it possible to apply for a credit card, as a dual citizen, and as a student? The account at Bangkok Bank is already registered as a Thai citizen, so the application would be processed as such. Also, would a monthly allowance that meets the requirements for income be accepted over an income slip, including with no credit history and as a student?

Or can a debit card be used as a credit card at international stores as well?

Also, please keep all replies ON TOPIC only. Thanks.

Get the AMEX Charge card from Bangkok Bank. Must be paid in full every month, no interest charges, no limit.

AMEX also has the blue credit card. The charge card is now min. a gold card. The original green charge card is only issued to old cardmembers, like me - a member since 1989.

There is no pre-set spending limit as long as you pay the monthly dues in full. But a limit may be set one you default in any monthly payment.

[BEENTHEREDONETHAT]

If you want to order something on the net it is difficult with cash, easy with a credit card.

[Adelita]

But can't you do everything with a debit card?

What does a credit card do that that cannot, besides 1 month advance credit for a certain amount?

[Adelita]

Thanks. I think I would get a Visa card, since that's what I had in a joint account for my allowance, but from a US bank. So if I get a Thai bank card, it would be okay to get a credit card to use at normal stores? The Bangkok Bank said that a debit card can be activated to use at stores, but most international stores accept credit cards if from international banks only.

So would it be necessary, and possible as a student, to get a credit card in order to use at normal stores?

Do banks require credit history, like in the US, in order to apply for a credit card rather than debit card?

Edited June 8, 2009 by Adelita

[Texpat]

Again -- it's not a one-month advance.

I could charge $5,000 today and pay it off over several years.

It's a loan.

[kennkate]

4 or 5 weeks Free money

If you pay your Credit Card before the due date you will not pay any interest

I can Purchase on the 7th and the bill is due on or before the 25th of the following Month

Make sure you DO pay it because charges are higher than most forms of borrowing

Not sure about Thai Credit Cards I only know about my UK one.

[Adelita]

I see. So it can be used as a debit card only, then, as well? As in, there are no extra fees or interest if the charged amount is always in the balance of the account?

[lothda]

I find that Amazon accepts the Bangkok Bank Visa debit card, but you will be charged immediately. I generally wouldn't advise using debit cards in that manner. However you can apply for the "Verified by Visa" system on the Bangkok Bank website. This takes you to the Bangkok Bank website every time you make an online payment with the Visa debit card on a website that supports the system - clearly shown by the "Verified by Visa" logo. There you have to enter a password that was chosen by you during the application process, thus providing an additional layer of security before the transaction is authorized. It works fine for me, but Amazon doesn't support it.

[hhgz]

"If a debit card or normal bank card is paid from the account directly, then what is the point of a credit card?"

Is this a serious question? Incredible. A credit card can extend payment over several years - a debit card pays for the purchase immediately. If someone gets hold of your credit card, makes charges, you can challenge the charges and pay very little or nothing of the fraudulent charges. If you lose your debit card, and someone make fraudulent charges, you have virtually no chance of getting your money back.

You're right, they're exactly the same...

[MJo]

Any debit card from Thai bank can be used in all shops in Thailand. I mean all shops that have set up for card payments. Actually they prefer the local card over foreign as it is propably much cheaper to the shop. And no requests to add 3% for credit card payment.

Debit card purchase is taken direct from your account. K-Bank has good system and you receive sms every time your card/account is charged so easy to notice if someone manages to copy it. I would assume Bangkok Bank and others have similar system in place.

Really no need to get credit card unless you need the credit or travel a lot outside thailand.

[sabaijai]

Two threads on same topic opened, now merged.

[sabaijai]

Moved to Banking, etc.

[BEENTHEREDONETHAT]

"If a debit card or normal bank card is paid from the account directly, then what is the point of a credit card?"

Is this a serious question? Incredible. A credit card can extend payment over several years - a debit card pays for the purchase immediately. If someone gets hold of your credit card, makes charges, you can challenge the charges and pay very little or nothing of the fraudulent charges. If you lose your debit card, and someone make fraudulent charges, you have virtually no chance of getting your money back.

I disagree with the above. Had a debit card with a Australian Credit Union. Someone in the UK charged over $7,000 in a little over one month. Reported it to the credit union, sent a sworn statement it wasn't us and it was replaced into the account in a very short time.

Someone must have gotten into the CU computer because we hadn't used it in 18 months and it was kept in a safe in LOS.

[JimGant]

I disagree with the above. Had a debit card with a Australian Credit Union. Someone in the UK charged over $7,000 in a little over one month. Reported it to the credit union, sent a sworn statement it wasn't us and it was replaced into the account in a very short time.

Yes, in the West, fraud with debit cards is now nearly as "fixable" as with credit cards. Unfortunately, there is the gap with your empty checking account -- should you be slow to detect fraud -- that may cause all kinds of problems with bounced checks, or returned direct debits. With a credit card, that you pay in full every cycle (using an automatic direct debit with your bank account, so you never forget....), you're in the exact same boat as having a debit card -- except you'll never be (even if temporarily) cleaned out; you'll (heaven forbid) have the option to 'borrow' in emergencies; and you might just be getting reward points as a bonus.

And in Thailand, I've seen horror stories with debit card fraud. This ain't the West, and there have been situations -- documented here on TV -- where the cardholder has been cleaned out, shunted aside for months, then, finally, only gets 50% back. You would think, since these Thai debit cards are Visa or MC logoed, that these big companies would step in. Nope. Their hands are apparently tied to some degree.

We demanded with Bangkok Bank that our plastic with them only be ATM --no ATM/Debit combo. Why? A debit card can automatically be turned into a "credit" card when used in the signature (or off-line) mode. No pin required. So, if someone gets your ATM/Debit card number -- using one of all the various ways reported -- he next only has to use it in the credit mode (again, no pin required) to clean you out. Nope, if someone gets our ATM number, it won't be useable in the signature/credit mode.

Credit cards are superior for protection from fraud. Combo ATM/Debit cards are the worst.

[aurelius]

We demanded with Bangkok Bank that our plastic with them only be ATM --no ATM/Debit combo. Why? A debit card can automatically be turned into a "credit" card when used in the signature (or off-line) mode. No pin required. So, if someone gets your ATM/Debit card number -- using one of all the various ways reported -- he next only has to use it in the credit mode (again, no pin required) to clean you out. Nope, if someone gets our ATM number, it won't be useable in the signature/credit mode.

Credit cards are superior for protection from fraud. Combo ATM/Debit cards are the worst.

Bangkok Bank's visa debit card is called Be1st. The cardholder can set the point-of-sale (POS) spending limit at zero either when the card is issued at the branch, or later by calling the call center. Furthermore, if you want to set this limit at (say) 50k for just one day, so that you can do a particular transaction, and then reset it to zero again, that's also possible; no charges.

In the case above, if the POS limit is zero, the a transaction attempted at a store will not be authorised. This is never a "credit mode" on a savings account or debit card - the debit card cannot be used in the old "zip zap" style because there are no raised numbers on the card, it is always authorised online in Thailand and will check back to the limit that is set against your card at the bank. Therefore it is not possible to overdraw the account or create a credit line.

Be1st transaction history is viewable via their internet banking (no monhtly bills of course!)

I notice that BBL has announced on their website that a chip version of the BE1st card, coming out soon - this will also help protect the card from being copied, and will mean that the debit card will have the same level of protection at shops as credit cards currently have.

Going back to the original question, I would think it unlikely that the bank will approve a credit card without a documented form of income - this is a requirement from the Bank of Thailand (minimum 15,000 bt /month, I think). A copy of payslip will be required.

[monty]

Just to concur with Aurelius, you'd be amazed at on how many on-line stores you can use the Be1st Bkk Bank debit card.

Indeed, if you end up at a merchant who requires the verified by visa thingy, you'll get redirected to Bkk bank website to allow you to set this up (combination online and phone communication required).

You can indeed change limits on what can be spend online and at POS outlets in a few seconds over the phone (02 645 5555).

The one only thing you can't do with it is use it as a credit card for example to give an open guarantee when renting a car, often required in the Western part of the world...

[JimGant]

Bangkok Bank's visa debit card is called Be1st. The cardholder can set the point-of-sale (POS) spending limit at zero

Which, as I mentioned (the equivalent of going ATM mode only), will prevent someone from stealing your number, manufacturing a debit card, then hitting your account in the signature mode (no pin), and cleaning you out.

In the case above, if the POS limit is zero, the a transaction attempted at a store will not be authorised. This is never a "credit mode" on a savings account or debit card - the debit card cannot be used in the old "zip zap" style because there are no raised numbers on the card, it is always authorised online in Thailand and will check back to the limit that is set against your card at the bank. Therefore it is not possible to overdraw the account or create a credit line....

.....but it is possible, using the signature mode, to clean out your account. And, yes, debit cards used in the "credit" mode never ever establish a credit line. They just use the mechanics of credit transactions to tap the money in their established account.

So, if you want to go "ATM mode only," and BB gets confused, tell them, as aurelius says, "set the POS spending limit to zero."

Edited June 9, 2009 by JimGant

[monty]

but it is possible, using the signature mode, to clean out your account

How would they do that?

The only way your card can get used to effect a transaction is by swiping it through a machine, which will check if sufficient funds are available, and no limits are being crossed.

Yes, you'd still have to sign the slip, but only after a slip comes out of the machine, which won't happen with the POS limit on zero...

[JimGant]

Yes, you'd still have to sign the slip, but only after a slip comes out of the machine, which won't happen with the POS limit on zero...

I think we're saying the same thing....POS limit set to zero is the same thing as having ATM only. If not, you might be cleaned out.

A few years back, we physically had an ATM card only -- by request. They then replaced it with a new Be1st card -- that automatically came with an authorized amount well above zero. For all the reasons mentioned, we then had them set it to zero.

However you do it, not walking around with a loaded debit card is recommended.