Exchange Rate Us$ Cash Vs Atm Vs Tt On 28 July 10

[rotary]

On 28th July went to Siam Commercial bank. I changed several thousand US$ into Thai baht and received 31.81 exchange rate. I noted that morning on their web site that a TT transfer was 32.05 or something like that. As soon as I changed cash I went outside & withdrew by ATM at Siam Commercial bank Thai Baht 20,000 from my bank in the middle east from a US$ bank acct. For some reason the ATM showed the exchange rate and it was 31.14. Gosh that about 60 stang per dollar so that was around 350 bhat worse exchange rate plus that Baht 150 fee. Thats 500 baht it cost to use their ATM service. Real crooks in my opinion. The exchange rate should be close to that of cash plus fee for ATM should be 30 baht or less. Thats the first time I really paid attention but it will not be the last time. Be warned Gents!!!

[el jefe]

Thanks. That's very useful info for anyone using the same (unnamed) bank in the middle east.

[Max4243]

When you want to do cash foreign exchange, my experience is not to use any banks, but to use a money changer and one I can recommend for really good rates is at Super Rich. Their rates are always much better than other money changer and obviously much better than the banks around.

As for using bank's ATM services, it is always idea and you really get ripped off. Don't use this if you can help it.

[billd766]

Perfectly normal.

When I compare the daily rate at KBank and the rate I pay in my UK bank the Thai rate is always better.

If you want to save money then transfer a lump sum from your offshore bank to the Thai bank and tell the offshore bank that you want the offshore rate.

[grumpyoldman]

I know this is going to sound quite lame, but I always confuse myself regarding exchanging money.

Please correct me if I am wrong or confirm right:

When I am in Thailand and I am taking Thai Baht to the bank to buy dollars I am looking at the banks "selling rate" of US currency.

Thb to US$ = bank selling of $ rate

When I get back to Thailand with the US$ to exchange back to Thai Baht that is the bank's "buying rate"

US$ to Thb = bank buying of $ rate

Thanks, I don't know why I can't remember, alzheimers setting in I guess..........

[kiwiinasia]

Just use a TT and get the best rate and the fastest.

My bank in NZ sent the swift transfer and the dosh arrived in the afternoon into my account at Krungsri.

Less than the 24-48 hrs quoted by a good 12 hours at a minimum.

And the phone call from Bkk to NZ didn't add up to a 50 baht!

[Langsuan Man]

The rate that a Thai Bank ATM gives is established by your home bank, not the bank that owns the ATM, they make their money on the "spread" and the 150 THB ATM fee

This was tested by many TV members when the 150 THB fee was initiated

[ianguygil]

Actually the rate is set by the network used to withdraw the funds, the network which links one bank to the other (as there are several). If it is the VISA network, VISA sets the rates for the day and all the banks use that rate. As you said the Bank which owns the ATM can set their fees, and your home bank can set their fees. So the effective exchange rate differs. But the actual FX rate for the transaction is set by the network in question. That is why you will see a long list of networks shown next to the ATMs so you can know if your card is accepted. VISA and MASTERCARD are the most common. Plus AMEX and lots of others.

[Langsuan Man]

Have you ever done a test, where you tried the same card on different Thai ATMS ? And then tried a different US Bank card on different Thai ATMS ?

I have and I still stand by my original statement that the rate is determined by your home bank, the network just verifies whether or not your card is accepted, has nothing to do with the exchange rate

Otherwise how can your home bank establish what your daily limit is going to be on a particular date, BY THEM SETTING THE RATE, that's how

Edited July 29, 2010 by Langsuan Man

[ianguygil]

I work for a large bank. I have always worked for banks, 30 years plus. This is how it works. Otherwise it would be too arbitrary. You can even search this and I can send you references if you wish. Ask your bank, they will answer the same way. They know the rate as VISA, MASTERCARD, CHINA UNIONPAY etc set the rate for all banks each day. As I said, your bank is free to set their own charges, which will affect the effective rate, but the actual FX rate is set by the network. NO NEED TO SHOUT IN YOUR POST BY THE WAY.

Otherwise you would never have any idea at all what the rate would be, your bank could give you 10 Baht to the USD if they wanted, which would clearly be unfair. The banks also settle (actually pay each other) via the owner of the network as they do not have correspondent relationships as they must have with a SWIFT payment. Otherwise every bank on the ATM network would need to have a direct account relationship with every other bank on the ATM network

Edited July 29, 2010 by ianguygil

[roamer]

I use this site to check rates, appears to change several times daily, even more in times of volatility, a couple of days ago the rate on the £ was changing around 10 to 15 times daily...on TT rates which are supposed to be the ATM rates. If I accept various posts here, my rates are either determined by my home bank (don't think so) or by the VISA, MASTERCARD, rates which are set daily and therefore these exchange rate variations each day are meaningless. Which is it ? My interest here is purely academic as the difference don't amount to a can of beans but someone surely has to be right

http://bankexchangerates.daytodaydata.net/default.aspx

[ianguygil]

Let me try to clarify so I do not use "banker speak"

A customer of UK Bank A whose debit card is tied to the VISA network goes to Thai Bank B and withdraws 20,000 THB from their ATM. Thai Bank B adds 150 THB to the total (which is now 20,150 THB) and debits the amount via the VISA network from UK Bank A at the prevailing rate for the day which for simplicity we will say is 50 THB = 1 GBP.

UK Bank A will debit 403 GPB (20,150/50) plus their charges. If we assume they charge 2% plus 2 GBP (I have no idea of the charges in the UK, I know HALIFAX did not used to apply charges in the other direction). So the total debit in GBP would be 403+8.06+2, giving 413.06. So the "effective" exchange rate to the customer is 20,000 (what they got in THB) / 413.06 = 48.42, less than the FX rate provided by VISA which is 50.

If a customer of UK Bank C went to the same Thai Bank B, did the same transaction, but UK Bank C did not levy charges, they would actually get an effective exchange rate of 49.63 (rounded) which is 20,000/403, but the actual FX rate used is still 50 for both banks. The difference in the effective exchange rate is due to charges which are set by each bank

In either case, Thai Bank B would get the same amount from UK Bank A and UK Bank B and this is based on the VISA FX rate in effect

I hope this makes sense. And I hope this helps. I rushed to do this as I am in a meeting listening. So please excuse any errors.

Good luck.

Edited July 29, 2010 by ianguygil

[ianguygil]

Rates can change during the day in high volatility.

The fact is that most ATM transactions are small and get the street rate. We publish rates which are indicative on our website as the actual rates change (at times) many times a day. But for the street rate for retail investors it is the same for everybody for the period of time it is in effect. Large amounts (which are not possible on the ATM in 1 transaction) are normally tied to FX contracts, and if not they will go to a dealer to assign a rate which is very to the street rate.

Edited July 29, 2010 by ianguygil

[moe666]

Just go to Vasu on Suk. Soi7/1 for one of the better rates.