No Such Thing As Bank Standing Order In Thailand?

[Artamus]

I've just rented a new house and went to my (Thai) bank to set up an automatic transfer each month to the house owner's (Thai) bank account. This would be termed a Bank Standing Order in the UK. I was informed that this is not possible in Thailand unless the two accounts concerned are both with the same bank. Can this really be true in Thailand? I know banking systems are a little behind over here, but a standing order is a little basic in terms of banking facilities.

Anyone else come across this? How does one set up automatic payments over here?

Edited November 9, 2009 by Artamus

[mosquitobill]

Had the same surprise when I tried to set up standing order to pay rent at TMB and was told the only way was for my leesors to open a TMB account.That was 5yrs ago and the banking system is still third world.

[chiang mai]

I pay two bills each month using standing orders from my HSBC bank account in Bangkok, the way it works is laughable. Both bills are payable to Bangkok Bank account holders so what happens is:

On the designated date, HSBC issues two cashiers cheque payable to the two designated payees - the cheques are then couriered to Bangkok Bank where they are deposited into the payee accounts. Seven days later (because it's outside of the province where I live) the beneficiaries receive payment. Cost is about 150 baht per cheque.

Having said all of that there is a system called BahtNet which allegedly handles standing orders between certain Thai banks, I haven't investigated it because I don't want to upset the finely balanced and highly tuned payments system I have in place at present.

[richardt1808]

Hi,

You can do it using internet banking.

With Bangkok Bank iBanking you can set up a new Payee, add your landlord's Bank details. Then you set up a recurring payment and even designate which day of the month the transfers should go through. Transfers are available to most other Thai Banks using this method and I'm sure that any of the other major banks who have internet banking facilities will have the same thing.

[julie_f]

The thing is here they have the automatic cash deposit machines which I've not seen in the Uk. There are machines but it is not counted and deposited until the following day usually. As for the standing order seems strange they don't do it. Never heard of BahtNet

Edited November 9, 2009 by julie_f

[drjden]

Works fine with bangkok bank. Fees are 20 THB in same region and 20 THB + 0,01% of valued to other region.

Bangkok Bank standing order service

Edited November 9, 2009 by drjden

[noahvail]

Just clicked on that link, Jrjden. Here's what it says:

Schedule automatic funds transfers

The Standing Order Service enables you to set up a regular automated funds transfer between Bangkok Bank accounts (italics mine). Whether you want to send money to family, pay your bills, or pay rent, our service can save you and make sure you never miss another payment.

So it would seem we can't do a standing order to other banks.

[fletchsmile]

Internet banking is the way to go. I'm able to set up the following no problem:

Bangkok Bank - interbank transfers possible on STO/repeating basis

Standard Chartered (Thai) - interbank transfers possible on STO/repeating basis

For each of these you need to first set up the transferee in account maintenance.

UOB (Thai) - can only transfer between UOB accounts

BTW before the days of internet banking when I used to go into Bank of Asia (now UOB) their "advice" - was to write a series of post dated cheques eg 12 chqs for same amount each month, as they didn't have STO's back then. Personally I didn't like that idea, but depending on who the payee is and how much you trust them it is a possibility.

[pkrv]

You definitly can set up some types of direct debits (automatic payments) at Bangkok Bank's Head Office.

You can set up direct debits for electricity, water, telephone etc by simply taking your passbook and a copy of the relevant bill (bills) to a dedicated counter - counter 54 at the head office. This is a very simple process, but takes time to complete. I was told that I would need to pay the next bill manually but after that automatic payments would be made. (Note at the time I did not have internet banking)

I know this is true because I set up and pay my electricity bills this way. I guess other Bangkok Bank branches can do the same?

But thanks for the update on using internet banking to pay other types of bill on a repeating basis. Saved me a lot of legwork.

However I was advised that there would be a small fee for transferring funds to another bank (other than Bangkok Bank) using internet banking. Does anyone know what this particular fee is?

Edited November 9, 2009 by pkrv

[thaihome]

You can make transfers at ATM's to any other bank. I don't think you can setup standing orders though.

TH

[ianguygil]

You can setup a recurring transfer on BangkokBank's iBanking service

It can be weekly, monthly or quarterly.

I hope this helps.

[fletchsmile]

You definitly can set up some types of direct debits (automatic payments) at Bangkok Bank's Head Office.

You can set up direct debits for electricity, water, telephone etc by simply taking your passbook and a copy of the relevant bill (bills) to a dedicated counter - counter 54 at the head office. This is a very simple process, but takes time to complete. I was told that I would need to pay the next bill manually but after that automatic payments would be made. (Note at the time I did not have internet banking)

I know this is true because I set up and pay my electricity bills this way. I guess other Bangkok Bank branches can do the same?

But thanks for the update on using internet banking to pay other types of bill on a repeating basis. Saved me a lot of legwork.

However I was advised that there would be a small fee for transferring funds to another bank (other than Bangkok Bank) using internet banking. Does anyone know what this particular fee is?

Direct Debits (DD) been available for quite a few years. Esp for utility companies, and paying your credit card. DD is for variable/different amounts each time at the request of the recepient, eg utility company. You fill in a form one off to let them do this.

Standing Orders (STO) are newer, but are now possible thru internet banking. The diff being they are for the same amount on a regular basis, this time at the request of the payer. You can usually cancel these anytime. For DD you may need to write to the recepient to cancel.

Bangkok Bank to Stan Chart costs me about 20 baht I think. Stan Chart to BKK bank was free as a promotion, but at some point I guess they will start charging too. Amounts differ if within BKK, up country etc. Either way not so much and worth it for the hassle saved

[aurelius]

Transfers to other banks use the interbank system called ORFT - Online Retail Funds Transfer. They can be done via ATM, internet banking, branch and also the Cash Deposit Machines of the major banks. The max transfer amount is 35k at ATM, 50k via internet and 100k at the branch. The fees for internet transfers and ATM are a max of 35bt; at the branch they are higher. As this system is inter-bank - the pricing and transfer amounts are set by general agreement between all the banks, although some banks may absorb the fees for promotional purposes from time to time.

A standing order is an instruction to the branch to repeatedly transfer the same specified amount to another account. There is a fee (20bt) per transaction, and this occurs within the bank only. If you transfer to your own fixed account (i.e. a monthly transfer to fixed account) then there is no fee charged at Bangkok Bank.

If you do it at internet banking, what you set up is a recurring transfer. You can set any number of transfers within 12 monthhs. There is no fee for a recurring transfer as such, but if you are transferring to third party (across banks) then you'll meet the ORFT fees above, or to an upcountry account there will be inter-regional charges. I use this to pay my rent. Also, if you want to cancel a transaction or amend the amount, you can manage that online as well.

Using the same concept, you can also set a regular instruction to buy mutual funds on internet (would be known as dollar cost averaging in some markets) - just a regular, standing, buy instruction.

The post above (pkrv) addresses direct debit service for paying bills, which is not the same as a standing order. In some countries it is known as Automatic Payment. This can be set up at any branch and is widely used here.

There is another service with a similar name and sometimes confused by foreigners and thais alike - Standing Instruction - it is an order to the bank to set up a link between a savings and a current (checking) account which ensure that if you write cheques which would otherwise bounce, the bank will automatically debit the savings account make good the value of the cheque, rather than authorising an OD.

[newcomer01]

Krung Thai Bank , Internet Banking can be set up to do automatic monthly payments to 3rd party banks. Simple once you get the hang of it.

[stranger-in-paradise]

Krung Thai Bank , Internet Banking can be set up to do automatic monthly payments to 3rd party banks. Simple once you get the hang of it.

Internet banking with Siam Commercial Bank allows direct debits to be set up to Bank of Ayudhya - probably others too, but I've not needed them. The only snag is that you need to refresh them every 6 months (i.e. set them up again) but not too time consuming.