Foreign Exchange in restaurants

[Buntsa]

We have a small restaurant with customers mostly from Europe.

If customer wants to pay with euro notes, is it legal as a restaurant make the exchange by taking ex. euro note and give the change back in Thai bahts?

How about doing money exchange when customer don´t buy anything, just want to exchange money? Exchange rate would change daily according to official exchange rates and follow the rates that are used in official money exchange places (taking the same comission).

[manarak]

The answer to your second question is that money changers need a license issued by the government.

[Buntsa]

Thank´s manarak.

Exactly what I assumed. I´m more interested about the first question. Can I take foreign currency as a payment? Everyone understand that it cannot be business but customer service. Maybe not thai police?

Of course nothing prevents you making this money exchange privately.

[Suradit69]

I would think most people here, whether short-term tourists or long-term residents, really ought to have baht to pay their expenses.

The odd occasion when someone ran short of baht or was on his way to the airport to leave the country wouldn't seem to be a big deal, but if word spreads that you're running a business in Thailand engaging in foreign currency transactions, that might draw some interest from police. Presumably you would be dealing in small amounts, but some misinformed people might think you're becoming the local money launderer.

And remember if you take foreign notes with the intention of changing them back to baht, any damaged notes might be rejected at exchanges or banks. They may be legal tender back in Europe, but a Thai exchange only uses them to sell on to another customer and no one wants to buy damaged money.

Edited May 3, 2015 by Suradit69

[stoli]

Just back from Vietnam. Every business, including restaurants take the Dong, or the US Dollar. Many business' would take the Baht. Sure made the trip easier. I can't imagine that you would be hauled off for servicing a customer. I would not do money exchange without the customer being a true customer though in Thailand. Yes, they are licensed. in Thailand.

Edited May 4, 2015 by stoli

[Tomtomtom69]

Just back from Vietnam. Every business, including restaurants take the Dong, or the US Dollar. Many business' would take the Baht. Sure made the trip easier. I can't imagine that you would be hauled off for servicing a customer. I would not do money exchange without the customer being a true customer though in Thailand. Yes, they are licensed. in Thailand.

Never found a business that took Baht in Vietnam, but at the Ben Thanh market some vendors take Malaysian Ringgit as there are a lot of Malaysian tourists there.

But I don't understand why any business needs to take foreign currency from a foreign tourist, it's just laziness on the part of the foreigner that doesn't want to exchange their money for the local currency. There are plenty of money changers and ATMs around, especially in tourist areas where most tourists like you find themselves.

I've also noticed that in Vietnam, fewer and fewer businesses will take USD or other foreign currencies anymore as the government has declared foreign currencies as illegal for payment. You can easily exchange major currencies, including Baht to Dong. Supermarkets, hotels outside of tourist areas, local shops, petrol/gas stations do NOT take USD anymore. Believe me, I tried when I ran out of Dong and I didn't want to go to an ATM (and in the area I was in, I couldn't find an ATM either). This was at a petrol station - took about 10 minutes to convince the guy to accept our 10 USD note for 100,000 Dong in fuel, but after he ran around to ask what the approximate exchange rate was he didn't want to give us any change; we should have been entitled to about 5 USD worth of change (about 110,000 Dong but of course 100,000 would have been good enough considering the inconvenience we put the owner of the petrol station in by forcing him to accept foreign currency that he would have to go to a bank to exchange).

Having said that, as you experienced, many tourist related businesses will still take USD or occasionally other currencies as a convenience to tourists. It also tends to be the case that money changers are very close by so it's not a great inconvenience and the USD/VND exchange rate is more or less fixed by the government, which only allows the VND to move in a small trading band.

But as for Thailand - one shouldn't be involved in this. Merchants in Vietnam, Laos, Indonesia and other countries in the region have long accepted foreign currencies for payment of goods and services alongside the local currency, but that doesn't mean you can do that in Thailand.

Edited May 4, 2015 by Tomtomtom69

[Tomtomtom69]

Thank´s manarak.

Exactly what I assumed. I´m more interested about the first question. Can I take foreign currency as a payment? Everyone understand that it cannot be business but customer service. Maybe not thai police?

Of course nothing prevents you making this money exchange privately.

While you could make a money exchange privately, you shouldn't be doing this as you don't have a licence. If you are located in a tourist area (I'm assuming you are) it's so easy to just tell your clients to exchange their foreign currency for Baht at a nearby money changer, many of which are open until late in the evening. Otherwise there are always ATMs or do you accept credit cards?

I think Suradit69 is right - leave the money changing to money changers because you could find yourself with notes that you can't exchange. Do you really want to have arguments with customers about pen marks, rips etc. in notes (remember they often have to be in very good condition to be accepted for exchange)?

[Buntsa]

Thanks everyone!

I realize now that it´s no use to take any pointless risks with this. Even though I also think that it´s insane ruling. Can understand that if it´s your core business you have to have the licence, but..... just serving a customer with this kind of an act? OK, this is amazing Thailand I know.

Our restaurant serves mainly four to five resorts around. Nearest ATM is located four km from restaurant, city (money exchange) and beach about 10 km.

Edited May 4, 2015 by Buntsa

[SunLover2]

The answer to your second question is that money changers need a license issued by the government.

Many hotels do foreign currency exchanges as an accommodation for their guests. Do they need a separate license or is this a part of their lodging operating agreement?

SL

[NickJ]

If its a one or two off for customers no worries....try and profit it from a regular basis then who knows.....hotels do......no harm no foul...The fact your asking pretty much says it all

Edited May 5, 2015 by NickJ