travelers cheques in thailand

[salavan]

hi i just been reading in the business forum about new charges for cashing traverls cheques, i thought it would be better seen in this general forum.

banks in thailand now charge a minimum of 150 baht to cash a traverls cheque,

just interested if anyone knows what other country's banks charge.

i think there should be some regualtions to curb the greed of banks.

[Tony Aparichio]

no big deal if its just one cheque but when you want to cash 60 (9000 baht) or 80 (12000 baht) checks at one time it becomes nutzoid. Are there alternatives in the kingdom???

[Pib]

Old news...been talked about in several threads over the last few months. Around March 2014 Thai banks increased their travelers cheques cashing fee from 30 baht + 3 baht stamp duty for a total of 33 baht per cheque to 150 baht + 3 baht stamp duty for a total of 153 baht per cheque. Note: the govt stamp duty did not increase; the Thai banks just increased their portion of the fee 5 fold from 30 to 150 baht. To help minimize this fee impact best to use the large denomination cheques like $500 USD (or equivalent). The Thai Bankers Association appreciates your business.

[Gonsalviz]

Open a bank account and transfer money in. Carry cash, up to $20,000 per person, depending on which country you come from. Or use an ATM card. Traveller's checks have been a pain in the arse here (or anywhere) for many years to me.

[lovelomsak]

Open a bank account and transfer money in. Carry cash, up to $20,000 per person, depending on which country you come from. Or use an ATM card. Traveller's checks have been a pain in the arse here (or anywhere) for many years to me.

Whether or not they are pain I have 60 of them that will now cost me 9000 baht to cash. I get them for no charge at my bank but pay over $5 to cash them, I used to think 30 baht fee was rip off but tolerated it, 150 baht is robbery. Every time things like this happen to me here I tighten up on spending. I feel they want to rip me off I spend less. Up to them.Now that money is going back home Thailand will see none of it. I liked them because the exchange rate was better but with this added cost it makes the rate lower.

I also have had a bank account for years here that isnot the issue here. But thanks for poor advice.

Edited July 5, 2014 by lovelomsak

[Pib]

Several months ago we had a friend from the U.S. come visit us...she comes every year or two and usually brings a lot of traveler cheques...usually $100 cheques. We told the friend well in advance and told her twice about the higher cashing fee and if she was going to bring travelers cheques like she usually does to be sure to bring $500 cheques versus the $100 cheques she normally brings...she said she understood. But what did she do....she brings along a bunch of $100 cheques again...but after getting stung almost $5 in cashing fee per cheque and realizing she was giving the Thai bank approx 5% of each cheque in fees, that it finally sunk-in she shouldn't have got $100 cheques. She was not too happy about the high fee...and also not happy with herself for not heeding our advice.

[lovelomsak]

Several months ago we had a friend from the U.S. come visit us...she comes every year or two and usually brings a lot of traveler cheques...usually $100 cheques. We told the friend well in advance and told her twice about the higher cashing fee and if she was going to bring travelers cheques like she usually does to be sure to bring $500 cheques versus the $100 cheques she normally brings...she said she understood. But what did she do....she brings along a bunch of $100 cheques again...but after getting stung almost $5 in cashing fee per cheque and realizing she was giving the Thai bank approx 5% of each cheque in fees, that it finally sunk-in she shouldn't have got $100 cheques. She was not too happy about the high fee...and also not happy with herself for not heeding our advice.

I think of some poor back paker out of high school or university off to see the world and brought $50 travellers cheques .Guys like this are paying 10%. I also wonder about atm rates. I have ask for hard copies of my banking account be sent to me here so I can cross reference what I received,with the rates of that day posted. when I use my atm card.. I feel the exchange rate for atms may be abusive to people who use there card in Thailand to get money from home country. It certainly isnot tt rate. I should add most of banking is using atm, my thai account just sits there with the 800,000 in it.

[Pib]

Several months ago we had a friend from the U.S. come visit us...she comes every year or two and usually brings a lot of traveler cheques...usually $100 cheques. We told the friend well in advance and told her twice about the higher cashing fee and if she was going to bring travelers cheques like she usually does to be sure to bring $500 cheques versus the $100 cheques she normally brings...she said she understood. But what did she do....she brings along a bunch of $100 cheques again...but after getting stung almost $5 in cashing fee per cheque and realizing she was giving the Thai bank approx 5% of each cheque in fees, that it finally sunk-in she shouldn't have got $100 cheques. She was not too happy about the high fee...and also not happy with herself for not heeding our advice.

I think of some poor back paker out of high school or university off to see the world and brought $50 travellers cheques .Guys like this are paying 10%. I also wonder about atm rates. I have ask for hard copies of my banking account be sent to me here so I can cross reference what I received,with the rates of that day posted. when I use my atm card.. I feel the exchange rate for atms may be abusive to people who use there card in Thailand to get money from home country. It certainly isnot tt rate. I should add most of banking is using atm, my thai account just sits there with the 800,000 in it.

The ATM rate is the Visa/Mastercard exchange rate "minus any foreign transaction the card-issuing bank may apply." Here's the Visa and Mastercard exchange rate pages. Visa Mastercard

Just to make the math easy say the Visa/Mastercard exchange rate is 100 units per your currency today and your card-issuing bank did not apply a foreign transaction fee, then your exchange rate is 100. But let's say your card-issuing bank applies a 3% foreign transaction fee, then your exchange rate is the Visa/Mastercard 100 minus 3 for 97. And of course there is always the possibly of the local ATM asking you do you want to use the Bank Rate, Home Rate, or some other warm & fuzzy name for the rip-off Dynamic Currency Conversion (DCC) exchange rate where you get the exchange rate set by that local ATM bank operator which will probably be around 3 to 4% lower than the Visa/Mastercard exchange rate. DCC bad, very bad for the customer; DCC good, very good for the ATM operator...don't accept a DCC transaction...press the no thank you button and continue on with a regular ATM withdrawal/purchase transaction.

All the person needs to know what exchange rate they get is what fees "their card-issuing bank may apply," which is usually a 1 to 3% fee sometimes combined with a flat fee of per transaction...and then look at the Visa/Mastercard exchange rate pages to finalize the math. And remember, don't do DCC transactions. Best to get a "no foreign transaction fee" debit/credit card if possible...like in the U.S., the Schwab debit card but there are other too.

[lovelomsak]

Several months ago we had a friend from the U.S. come visit us...she comes every year or two and usually brings a lot of traveler cheques...usually $100 cheques. We told the friend well in advance and told her twice about the higher cashing fee and if she was going to bring travelers cheques like she usually does to be sure to bring $500 cheques versus the $100 cheques she normally brings...she said she understood. But what did she do....she brings along a bunch of $100 cheques again...but after getting stung almost $5 in cashing fee per cheque and realizing she was giving the Thai bank approx 5% of each cheque in fees, that it finally sunk-in she shouldn't have got $100 cheques. She was not too happy about the high fee...and also not happy with herself for not heeding our advice.

I think of some poor back paker out of high school or university off to see the world and brought $50 travellers cheques .Guys like this are paying 10%. I also wonder about atm rates. I have ask for hard copies of my banking account be sent to me here so I can cross reference what I received,with the rates of that day posted. when I use my atm card.. I feel the exchange rate for atms may be abusive to people who use there card in Thailand to get money from home country. It certainly isnot tt rate. I should add most of banking is using atm, my thai account just sits there with the 800,000 in it.

The ATM rate is the Visa/Mastercard exchange rate "minus any foreign transaction the card-issuing bank may apply." Here's the Visa and Mastercard exchange rate pages. Visa Mastercard

Just to make the math easy say the Visa/Mastercard exchange rate is 100 units per your currency today and your card-issuing bank did not apply a foreign transaction fee, then your exchange rate is 100. But let's say your card-issuing bank applies a 3% foreign transaction fee, then your exchange rate is the Visa/Mastercard 100 minus 3 for 97. And of course there is always the possibly of the local ATM asking you do you want to use the Bank Rate, Home Rate, or some other warm & fuzzy name for the rip-off Dynamic Currency Conversion (DCC) exchange rate where you get the exchange rate set by that local ATM bank operator which will probably be around 3 to 4% lower than the Visa/Mastercard exchange rate. DCC bad, very bad for the customer; DCC good, very good for the ATM operator...don't accept a DCC transaction...press the no thank you button and continue on with a regular ATM withdrawal/purchase transaction.

All the person needs to know what exchange rate they get is what fees "their card-issuing bank may apply," which is usually a 1 to 3% fee sometimes combined with a flat fee of per transaction...and then look at the Visa/Mastercard exchange rate pages to finalize the math. And remember, don't do DCC transactions. Best to get a "no foreign transaction fee" debit/credit card if possible...like in the U.S., the Schwab debit card but there are other too.

Thanks for that it was very interesting and well woth knowing and the links are good. You are well up on whats going on in the money world I am glad you are in this form.

My atm card though is neither Visa or Mastercard. It is a bank only card no middleman.But I pay a fee of $5 Canadian to use an atm not from my banks companies atms. There are no % involved straight withdrawal and $5 service charge. My monthly statement will give the amount in Canadian dollars and the amount in Thai Baht,including the 150 baht fee,plus the rate the transaction was done at. So the fee should be what the atm here in thailand is offering, my bank. I am really curious now to see what it was the last few months when I receive the hard copy. Will let everyone here know too. Since I donot know at the moment it will be interesting to find out.

On another note I read where American Express Card holders can bypass the 150 to 180 baht Thai atm fee. The card holder simply has to contact American express and then you can withdraw directly and do it for without the Thai atm fee.. To bad my bank doesnot do that mine is a direct one too.

[Pib]

Yes, apparently for AmEx cards there is not a Bt150-180, or at least at Bankgok Bank ATMs. See below taken from the Bangkok Bank website where it says no fee for AmEx cards.

However, I dare you to provide an AmEx exchange rate webpage like Visa and Mastercard provide. Yes, you can find AmEx pages that talk about their exchange rate in general and give you an approx rate, but they have fine print for the exchange rate calculator along the lines of: "This conversion is made using the Interbank rate. It should be used as a guide only. Call your local American Express travel office for the latest rates."

Since AmEx don't seem to be upfront with a person in exactly what their exchange rate is for the day, I"m going to assume it's probably not that good. So, while you may escape a local Thai bank ATM fee the AmEx rate may eat some of your lunch, whatever the rate may be.

[lovelomsak]

Yes, apparently for AmEx cards there is not a Bt150-180, or at least at Bankgok Bank ATMs. See below taken from the Bangkok Bank website where it says no fee for AmEx cards.

Capture.JPG

However, I dare you to provide an AmEx exchange rate webpage like Visa and Mastercard provide. Yes, you can find AmEx pages that talk about their exchange rate in general and give you an approx rate, but they have fine print for the exchange rate calculator along the lines of: "This conversion is made using the Interbank rate. It should be used as a guide only. Call your local American Express travel office for the latest rates."

Since AmEx don't seem to be upfront with a person in exactly what their exchange rate is for the day, I"m going to assume it's probably not that good. So, while you may escape a local Thai bank ATM fee the AmEx rate may eat some of your lunch, whatever the rate may be.

Nice of you to mention that we would be dealing with AmEx rate not the bank rate. Like I said before good thing you are in this forum.