SCB Visa Card

[wayned]

I've had an SCB visa card for years and usually only use it to withdraw cash as no merchants take visa anywhere I live. I usually pay in full every month so there's no outstanding balance. My printer went "tits up" and I tried to withdraw money to buy a new one this morning and the ATM wouldn't give me any cash It said contact issuing bank. i used my AX card with no problem. I contacted SCB when I got home and they told me that the bank policy has changed on 11 June and you can no longer withdraw cash with the card, only pay for purchases. If so, what good is the card if you can't get cash while traveling. Has anybody else experienced this?

[smileplur]

Where I am from, America, cash advances on Credit Cards aren't very common. Pin numbers aren't standard issue for credit cards. In fact, I don't even know the process to get one should I ever need to take a cash advance. The interest rates for these transactions are usually ridiculously high.

Imagine my surprise when I got my first credit card here in Thailand, from Krungsri, and the cash advance amount was 40% of my credit limit. This seemed insanely high to me. A few days later, an envelope arrived with my pin number. From what I understood, the interest was charged in a different way for cash advances. A month later, I got the card I was really after, Krungsri Platinum. The first card was a First Choice. The bank told me to apply for it because it is easier to obtain for everyone (not just farangs) and there was a very good possibility I would be denied for the Platinum Card. So, their logic was to apply for both. If I didn't get the Platinum card, I had some plastic.

When that Platinum Card arrived, I was happy. I opened the shiny box that held my card and started reading through the paperwork. Again, the percentage available for a cash advance was alarmingly high. Everything was in Thai, but it seemed to me that interest was charged differently again. I was doing my best to read the script, but the numbers that demonstrate the interest calculation lead me to my conclusion: Cash Advances are more readily available here and the interest rates associated with them are set differently because banks are in the business of making money. Banks give a "grace period" for the regular transactions a person makes because they have already made money when the card was swiped at the Point of Sale. When you take a cash advance from an ATM, there is no POS. Therefore, the bank doesn't make money. Why would they give you a loan for free? The answer is simple, they don't!!!

OP - I am sure you are aware of this. I am also sure you have read and understood the fine print associated with your particular SCB card. I am curious about the card you have:

• Do you have an actual credit card? I ask because it is more common to have a secured Credit Card. Is your visa secured by a fixed deposit with SCB?

I can only speculate about why this would happen. I don't believe there is a grace period for my credit cards (unsecured) if I use them for a cash advance. I outlined the reason for this above. The only reason I can see the bank terminating this service is because they cannot benefit from it in any way. They don't make any money. Your card may be different than mine. You might get a "grace period" for the cash advances you take. I can see this being the case especially if you have a secured credit card, as you are borrowing money against yourself. The bank is assuming no risk. If that is the case, the bank would most certainly prefer to have your deposit in the bank for as long as possible, especially if you have a history of paying it off every month and effectively paying zero interest. By having your money in their bank, they are making money by loaning it to other people and earning interest.

So, my educated guess, is simply that they want to benefit from the transactions you make. They are now forcing you to go to a vendor that will accept visa for purchases. That way, they can be sure they get their POS fee from the merchant selling you the computer, etc. Otherwise, the money stays with them so they can continue to earn money on it.

As I said, I just took a stab at it. This is merely my best guess without knowing the ins and outs of your agreement with the bank regarding your "visa" card, interest rates, fees, and if it is secured or not.

I would be interested to hear what other people might think about this as well.

By the way, where do you live that there are no stores, shops, or merchants whatsoever that will accept visa as a form of payment? I am not sure I would like that. If you live upcountry somewhere, surely you have access to transportation of some kind. Is it worth it for you to drive on into the "big" city to find somewhere that does accept visa?