International Exchange Fees

[Thaigreg]

In May of this year when I received my new VISA CREDIT CARDS from one of my US banking accounts. I received a notice that there would be a 1% currency exchange fee beginning in July 05. I made a small purchase with this card and sure enough I was charged this 1% fee. I have another VISA CREDIT CARD with another US bank and started using that with no fee charges, but on 26 Sep I made a ATM withdrawal with my DEBIT CARD at a machine in TESCO LOTUS in Pattaya and was charged a 1% fee. Has anyone else experienced this fee charges with either their VISA CREDIT or DEBIT cards? Thanks

[lopburi3]

Yes. But there used to be a 1 percent reduction in the exchange rate so not sure if it is an increase in fee or just a new way to account for it (as I do not use debit card anymore).

[simcity]

i start a topic regarding extra fees about 6 month ago , was 3 % extra for me .

i ring them to cancelled my credit card , they told me to keep it at no yearly charge .

still a rip off !

it is a charge for purchass and withdraw

[thohts]

MBNA is now charging me about 1-3% (I forget which) for foreign currency transactions.

[lopburi3]

Chase calls it an "exchange rate adjustment" and it is 3%. The exchange rate used seems to be the full TT rate for that day so if rate was 41 you would end up getting about 39.8. For smaller items perhaps not too important but would seriously question using for larger purchases (especially if merchant wants to add another hit).

[OldAsiaHand]

Since the spot rate for the Thai baht can easily range over more than 1% on any given day, and since they don't tell you on exactly what day the exchange rate for your purchase was accounted for (let alone at what time), these are tough charges to nail down. You really have no way at all of determining what the 'correct' rate was so that you can then calculate what spread and/or fees you were actually charged. As a practical matter, you're completely at the mercy of the credit card company.

The first rule of using credit cards overseas is to have separate accounts in any currencies you regularly use. Then you can match up the currency in which you are charging and the currency in which you are being billed and avoid the problem altogether. When you're charging in a currency for which you have no account, however, you just have to grin and bare it, as they say. There is no doubt you will be charged heavily for the privilege, and a good possibility you will be ripped just a little, too.

[britmaveric]

Thai(s) normally tack on 1% to the bill to cover their fee(s) when you use credit. So sounds as if we are getting hit from both sides now.

Edited October 1, 2005 by britmaveric

[LindsayBKK]

I only use AMEX in Bangkok. My bank in Australia (St.George Bank) charges me a $6 for an overseas withdrawal + the currency conversion fee about 1.5%. I have an American Express Card that gives a better currency rate + 55 days interest free + can be used many most places around Bangkok + No annual fee either. Shop around is always the best advice. Or transfer cash to a Thai bank account like I have. Transfer fee's from Australia to BKK are $20aus. Oh and don't join any rewards programs they are just a rip-off.

American Express Australia Link