New Thai Banking Fees To Take Effect Next Year

[jfchandler]

Henry, do you mean no fee charged just if the card holder is a EuroZone resident from a different country.... or no fee charged no matter who or where the cardholder is from???

I only like to mention that wherever you take money out of an ATM in any EUROZONE country there is no fee asked or deducted. Also when you transfer money to any EUROZONE bancaccount there are no fees.

Thailand is still far away from a customer friendly banking policy.

[angiud]

They should reduce the obscene number of ATMs everywhere in the country. Never seen something like this in Europe (maybe USA?). I know many ATM don't generate enough profit for the bank (# of transactions). I think a machine is a pretty expensive stuff, but for sure the company give to somebody in the food chain enough nourishment to order an obscene number of machines. Reduce the expenses, raise the profits.

[connda]

"It should be a couple of years before banks can recoup the loss with other kinds of revenue."

Translation : We can raise the international ATM fees from 150 to 300 baht the first year, and then from 300 to 600 baht the next year. If the farangs don't like it, they can go home. And the stupid tourists can go vacation in Malaysia or Vietnam. Otherwise they can pay.

[BuPattaya]

Sounds like they are adding more in charges then they are removing. Have to look into these new changes a bit more closely.

[hansnl]

Banks and Insurance companies are legalised criminal organisations.

Anywhere on the world!

The art of moneygrabbing is highly refined in those institutions.

The worldwide financial crisis was fabricated by the bank & insurance companies.

And they just go on.

[hansnl]

I only like to mention that wherever you take money out of an ATM in any EUROZONE country there is no fee asked or deducted. Also when you transfer money to any EUROZONE bancaccount there are no fees.

Thailand is still far away from a customer friendly banking policy.

True, true....very true.

However, if I put money in a savings account anywhere in Europe I will get maybe 1-1,5 % intrest on a yearly base.

I will, in several countries of the EU, pay nearly the same percentage in intrest on a loan.

That is, per month.

Bit better in the Thai banks.

[pgangeles]

QUESTION. Is there any fee for going to the counter and removing funds that you have in that bank, savings or checking account, rather then going to the ATM?

[cbc]

What about cancelling or lowering the fee charges for foreign debit or credit card.This also effects the tourists coming here and the expat's living here.But, i guess we are considered all to be rich foreigner's and the Bank's can makeup some of their losses through us.

[ericthai]

I think what some posters are missing is that they seem to be going to a flat single fee structure regardless of the amount involved, as opposed to the prior XX baht per 10,000 of funds handled...

So for someone moving larger amounts, a 15 baht single fee would be better than 50 baht (10 baht X 5) for a 50,000 baht transaction.

However, for the lower income folks, it looks like a lot of things are going to become more expensive...in the case where their amounts transacted are below 10,000 or 20,000 baht per item.

And, BTW, of course, absolutely no mention on action on the farang friendly 150 baht ATM withdrawal fee.

No,we don't miss that since it isn't written anywhere.Where in the article is there talk about a flat fee?All I see is fee per transaction,and it is rising in every case.

Maybe you missed this?

Fee for interprovincial cross-bank ATM withdrawals will cost no more than 20 baht per transaction from the current ten baht per 10,000 baht and an increase of five baht per transaction is applied from the fifth time onwards.

Means they are now going to charge a set fee, which will be no higher than 20 for the first four transactions and then no more than 25 baht per transaction there after, instead of what is now being charged at 10 baht per each 10,000 baht.

Edited September 29, 2010 by ericthai

[dighambara]

Now if the Bank of Thailand really wanted to help average people, how about reducing the standard 20% credit card interest rate charged by all the major Thai banks, apparently as a result of a rate set by the BOT...

But NOOOOO....... The banks' real cost of funds is 2 or 3%.... But if you think the BOT is going to give people a break on their credit card interest rates, forget it!!!

Many Asian countries learned the hard way about credit cards. And scrambled to implement regulations to correct the problems.

An excellent article about three of these countries is found HERE

From that article:

Forms of such restrictions have indeed been strengthened or reintroduced in some Asian markets following the recent distress episodes. For example, drawing lessons from the Korean experience, and in response to a marked acceleration in local credit card lending during 2001-03, the Thai regulators promptly introduced formal guidelines on credit card operations in 2002 and tightened them in 2004. In November 2002, the Bank of Thailand (BoT) set the minimum annual income requirement of THB180,000 for cardholders and a 5% minimum monthly repayment of the total credit card balance outstanding. In March 2004, the BoT acted again to set a credit limit of five times of monthly income, hike the minimum monthly repayment to 10% in a phased manner and request mandatory cancellation of credit cards in case of overdue for more than three months. In April 2007, the BoT raised the regulatory ceiling on credit card charges to 20% from 18% APR. Largely owing to these BoT moves, Thailand’s credit card balance outstanding decelerated sharply, from a worrisome peak of 80% growth in mid 2003 to below 10% by late 2007 (Graph 14). There were signs of some deterioration in the asset quality of credit card lending as well, probably in response to the tougher minimum monthly repayment requirement. Yet, it seems that so far, Thailand has managed to avoid a painful bust

Hmmmm. Sounds like the BOT has taken appropriate action.

And, in picking 20% as the deemed interest rate, could this actually be too low?

In Asia, legal ceilings on interest rates on consumer finance range from 18% in Malaysia, 20% in Taiwan and Thailand, 40% in Korea to 60% in Hong Kong....In the Philippines, the local regulatory ceilings on interest rates have been lifted since the 1980s so that higher card rates mostly reflect higher credit costs on card lending. Most Philippine card issuers currently charge some 30% APR

Wow. The market rate in the PI is 30%. No doubt caused, in large, by folks living beyond their means.

Which sounds a lot like Thailand, where one-upsmanship is truly ludicrous. Resulting, quite possibly, in over-extended credit. Which means a pegged 20% credit interest rate is probably too low (in the US, the market rate for at-risk credit card holders is over 20%).

Thai bank regulation, at least in the last decade, seems to have kept things on an even keel. That the fee structure is part of this doesn't seem too inappropriate -- kinda like how the utilities (some, at least) are regulated back in the States.

The US rate depends on local law - some states have a 12% limit on all credit cards.

[pgangeles]

HELP

QUESTION. Is there any fee for going to the counter and removing funds that you have in that bank, savings or checking account, rather then going to the ATM?

[jfchandler]

Your comment suggests/assumes you're talking about going into a local Thai bank where you also have a local account.

Assuming you're going into a branch that's in the same general area/province as the branch of the same bank where your account was originally opened, there should be no fee for ATM or counter withdrawals.

If you're going into a branch in a different area/province from where your account was originally opened (say your account is based at a BKK Bank branch in Bangkok but you're using a BKK Bank branch in Chiang Mai), then there may be a small fee for ATM withdrawals, depending on the bank and how many similar ATM withdrawals you've made that month.

Same-bank ATM withdrawals across provinces will be subject to fee of no more than 15 baht per transaction from the current ten baht per 10,000 baht withdrawn.

I'm not sure how the Thai banks handle different province counter withdrawals.

HELP

QUESTION. Is there any fee for going to the counter and removing funds that you have in that bank, savings or checking account, rather then going to the ATM?

[pgangeles]

Your comment suggests/assumes you're talking about going into a local Thai bank where you also have a local account.

Assuming you're going into a branch that's in the same general area/province as the branch of the same bank where your account was originally opened, there should be no fee for ATM or counter withdrawals.

If you're going into a branch in a different area/province from where your account was originally opened (say your account is based at a BKK Bank branch in Bangkok but you're using a BKK Bank branch in Chiang Mai), then there may be a small fee for ATM withdrawals, depending on the bank and how many similar ATM withdrawals you've made that month.

Same-bank ATM withdrawals across provinces will be subject to fee of no more than 15 baht per transaction from the current ten baht per 10,000 baht withdrawn.

I'm not sure how the Thai banks handle different province counter withdrawals.

HELP

QUESTION. Is there any fee for going to the counter and removing funds that you have in that bank, savings or checking account, rather then going to the ATM?

Thanks, much appreciated.

[james24]

bloody hel_l Im confused.

I get bummed at the moment for taking money out from Uk account (6 quid everytime).

So every transaction I make from the balance in my Kasikorn and Bangkok bank accounts, I will get charged for, (e.g 500 baht = 520 baht) even if its in the same province....?

Wow that cant be right surely

As for this being a smokescreen, its pretty obvious Thailand is collapsing, give it 3 years if that

Edited September 29, 2010 by james24

[JimGant]

The US rate depends on local law - some states have a 12% limit on all credit cards.

Only on credit cards from financial institutions chartered in those states. Which is why you won't find too many small state banks, from states with usury laws, in the credit card business.

In 1978, the U.S. Supreme Court decided that state-created laws concerning exorbitant rates of interest could not apply to a national bank, with a multi-state presence. From that moment on, nationally chartered banks would be held accountable to Federal law, overstepping state boundaries. Not only did this profoundly affect the credit business in general, but it also gave credit card companies and banks an advantage. They could become a national bank or simply move to a state where there were no or low credit card usury laws in place.

JFC,how's your Portuguese?

A Brazilian bank-issued Visa or Mastercard to a new account holder can have annual interest as high as 240% even though inflation seems under control at around 6% per annum (Economist, May 2006)

[jfchandler]

James, can you translate your comments below into real English language???

You're talking about taking money our of your UK account. You're talking about taking money out of Kasikorn and Bangkok Bank accounts in Thailand....

What you get charged by any of those banks depends on HOW you're taking money out (ATM card, counter withdrawal, wire transfer, etc.), and whether you're trying to move funds from the UK to Thailand, or just keeping each within each respective country...

And for the Thai banks, whether you're withdrawing the funds in the same area as where you account is based, or in some other part of the country away from the home branch that opened your account...

The answer to your question depends on the detail of what exactly you're trying to do.

bloody hel_l Im confused.

I get bummed at the moment for taking money out from Uk account (6 quid everytime).

So every transaction I make from the balance in my Kasikorn and Bangkok bank accounts, I will get charged for, (e.g 500 baht = 520 baht) even if its in the same province....?

Wow that cant be right surely

As for this being a smokescreen, its pretty obvious Thailand is collapsing, give it 3 years if that

[jfchandler]

Jim, I'm sure there are some other countries that have as high or higher limits.... Didn't someone post here just lately about Korea and some other Asian country allowing credit card rates up to 200% or so APR....

The only thing crazier than those rates....is someone who'd be willing to actually pay to borrow resolving funds at those kinds of rates.

Here's the full Wikipedia entry that you seem to be pulling from:

Brazil has much higher interest rates, about 50% over that of most developing countries, which average about 200% (Economist, May 2006).^{[citation needed]} A Brazilian bank-issued Visa or Mastercard to a new account holder can have annual interest as high as 240% even though inflation seems under control at around 6% per annum (Economist, May 2006).^{[citation needed]}Banco do Brasil offered its new checking account holders Visa and Mastercard credit accounts for 192% annual interest, with somewhat lower interest rates reserved for people with dependable income and assets (July 2005).^{[citation needed]} These high-interest accounts typically offer very low credit limits (USD$40 to $400). They also often offer a grace period with no interest until the due date, which makes them more popular for use as liquidity accounts, which means that the majority of consumers use them only for convenience to make purchases within the monthly budget, and then (usually) pay them off in full each month.

JFC,how's your Portuguese?

A Brazilian bank-issued Visa or Mastercard to a new account holder can have annual interest as high as 240% even though inflation seems under control at around 6% per annum (Economist, May 2006)

Edited September 29, 2010 by jfchandler

[moskito]

Are there donation accounts for the poor banks already? If so may be the moderator can find out and post us the numbers here, I will donate.

I never in no other country in the world had to pay money if I bring money into my own account in another city as the one where I opened the account.

We pay fees for everything here, while Siam Comercial Bank for example is open one branch after another with lots of staff inside watching TV and an ATM evey 500meters.

Banks should learn that they are living of the peoples money, not the other way around.

[richard10365]

I don't see how they can lose something they never had. Seems like a trade barrier to me. Less people will send money and the banks will get richer. We can't get 3G but it seems easy to raise bank fees.

[basjke]

I think what some posters are missing is that they seem to be going to a flat single fee structure regardless of the amount involved, as opposed to the prior XX baht per 10,000 of funds handled...

So for someone moving larger amounts, a 15 baht single fee would be better than 50 baht (10 baht X 5) for a 50,000 baht transaction.

However, for the lower income folks, it looks like a lot of things are going to become more expensive...in the case where their amounts transacted are below 10,000 or 20,000 baht per item.

And, BTW, of course, absolutely no mention on action on the farang friendly 150 baht ATM withdrawal fee.

No,we don't miss that since it isn't written anywhere.Where in the article is there talk about a flat fee?All I see is fee per transaction,and it is rising in every case.

Maybe you missed this?

Fee for interprovincial cross-bank ATM withdrawals will cost no more than 20 baht per transaction from the current ten baht per 10,000 baht and an increase of five baht per transaction is applied from the fifth time onwards.

Means they are now going to charge a set fee, which will be no higher than 20 for the first four transactions and then no more than 25 baht per transaction there after, instead of what is now being charged at 10 baht per each 10,000 baht.

So what is the difference?

Let me tell you what it is.From now on you get charged 20 Baht for a 10.000 baht withdrawal where it was 10 Baht previously.For 20.000 Baht you get charged 20 Baht,where it is 20 baht currently,and 25 Baht after the fifth transaction.

For a withdrawal of 30.000 Baht you also get charged only..............Oh,the average ATM can only deliver a maximum of 20.000 Baht per transaction.

Can you tell me again what I missed.

[jfchandler]

Well put!!! Wish I had said it that way...

But unfortunately, a totally foreign concept to the Thai banking industry...

Banks should learn that they are living of the peoples money, not the other way around.

[henryalleman]

Henry, do you mean no fee charged just if the card holder is a EuroZone resident from a different country.... or no fee charged no matter who or where the cardholder is from???

I only like to mention that wherever you take money out of an ATM in any EUROZONE country there is no fee asked or deducted. Also when you transfer money to any EUROZONE bancaccount there are no fees.

Thailand is still far away from a customer friendly banking policy.

.

I must adjust my comment.

Its not only for EUROZONE countries but for all EU memberstates.

All redrawels from any ATM in any EU memberstate is free of fees, as long you have an bank account in a EU memberstate, regardles you are a resident or not.

So if you are an American or Brittish citizen you pay no fees when you are a card holder of an bank account in a EU memberstate country.

This is under the EU agreement of free traffic for capital, people and goods between the member states..

BTW the EU consumer protection laws are one of the most stringent in the world. Just ask Thai Airways who refused to give compensations or providing accommodation and food and beverages to passengers departing from Thailand to an EU country during the dust clouds recently. They even risk to be banned from all EU airports.

[jfchandler]

Thanks for clarifying that, Henry... Good to know that info....

So just to be clear... As an American, if I used my U.S. bank card in a EU country, I'd likely be charged an ATM fee.

But, as an American, if I somehow had a local bank account in a EU country, I could use that EU bank card in any EU country without an ATM fee....

How's the situation with your country in terms of people being able to avoid the foreign currency transaction fee (1-3%) when using your EU bank cards outside the EU such as in Thailand???? Any 0% fee options available when traveling outside the EU???

[henryalleman]

Thanks for clarifying that, Henry... Good to know that info....

So just to be clear... As an American, if I used my U.S. bank card in a EU country, I'd likely be charged an ATM fee.

But, as an American, if I somehow had a local bank account in a EU country, I could use that EU bank card in any EU country without an ATM fee....

yes

How's the situation with your country in terms of people being able to avoid the foreign currency transaction fee (1-3%) when using your EU bank cards outside the EU such as in Thailand???? Any 0% fee options available when traveling outside the EU???

I'm afraid not.

No thanks needed, glad to help you out.

To answer the second part about fees. Its all depend on your bank. Some banks are more cheaper than other ones,

I'm an retiree in LOS, so I only use my Kasikorn Debetcard, and VISA and MASTERCARD from back home. So I never take out money from an ATM with ca rds from back home;

But before I used my ATM card from back home but always for an redrawel of the maximum (before 25 000 baht) to lower the fees. But here again its important to look wich bank back home asks the lowest fees for an ATM redrawel in a non-EU country.

[ryladie99]

So, basically you will be charged 10 - 20 baht for almost any kind or ATM transaction. I guess they want to go back to a cash-based economy.

Luckily for your guys, Thailand Banks charges less fee than US. I have been told in our future I have to pay fee for talking to the teller while going for banking business...wow?? knock my sock off

By the way, Bank of America starts charging fee of $35 for check bounce and the lists go on an on...I urge everyone stops subsidizing the Banks. Carry cash and use cash. It is time to strike back.

My take and opinion.

[jfchandler]

I'm not sure where you get the facts to support that opinion...

I have U.S. credit cards with 5%, 7%, 9% and 14% interest rates. The standard Thai bank credit card rate is 20%, good luck in finding any rate lower.

I have multiple U.S bank accounts with debit/ATM cards. NONE of them charge fees (or have ever charged fees) to issue or annually continue those cards. Thai banks all charge fees to both issue debit cards and again annually to maintain them.

U.S. banks typically charge no more than $3 when someone from a different bank, including foreign ones, does an ATM withdrawal. Thai banks all charge almost $5 for foreign card ATM withdrawals. And lots of U.S. banks offer accounts that provide ATM fee reimbursements... Trying finding that in Thailand...

U.S. banks allow their customers to use their ATMs anywhere they are located, typically with no fee. Thai banks charge their customers fees to use their own ATMs and transfer funds when they're doing it in a province away from where their home branch is located...

and on and on and on...

Some U.S. banks do have higher charges for some things...but at least in the U.S., you have a choice to go to a different bank with different account terms that are more favorable, such as no minimum, no monthly fee accounts.

In Thailand, you have virtually no choice... you can change banks, but the account terms, rates and charges are all going to be virtually identical. In Thailand, you pay the banks.... period.

If you're paying higher bank fees in the U.S. than in Thailand, I can only presume it's because you're not smart enough to do better...

Thailand Banks charges less fee than US.

[james24]

mmm didnt think it was confusing at all,

I have a thai kasikorn account, in the future am I gonna get charged for withdrawals from that account in the future..? I already know you do when the account is from another province, in the same province I set it up in will I be charged 15-20 baht a time...?

Forget anything about my Uk account if that makes it clearer

[robert00]

"It should be a couple of years before banks can recoup the loss with other kinds of revenue."

Translation : We'll still get the same amount of cash from each customer, and probably more. We just haven't figured out the scam yet.

The rest is pretty much untranslatable. But basically when a goose sits on a log under a full moon and you are doing an ATM transfer standing on one leg then you might get it for free.... or not.

Does not make sense to me, how the banks can loose when they are charging now 10 bath per transaction and from next month 15Bath. To me it looks like making more profit not less.

[jfchandler]

James, if you have a Thai bank account, as long as you're using an ATM of that same bank company in the same province or general region where you opened the account, there shouldn't be any ATM withdrawal fee, now or in the future.

The original article in this thread, and the related fees, have more to do with using Thai bank accounts and ATMs to transfer funds to other accounts and/or other Thai banks...like a Thai worker in Bangkok going to the ATM and using it to send money to their parents' account in Chiang Mai, etc etc...

mmm didnt think it was confusing at all,

I have a thai kasikorn account, in the future am I gonna get charged for withdrawals from that account in the future..? I already know you do when the account is from another province, in the same province I set it up in will I be charged 15-20 baht a time...?

Forget anything about my Uk account if that makes it clearer

[james24]

aa ha brill, thanks for clearing that up :-)