Is a 50% commision rate at Bangkok Bank currency exchange normal?

[Jake McClinton]

Hey guys,

on this topic, i recently feel i have been victim to a crime rather than an poor exchange rate and would like some info.

So, i was in a rush on my way to check in to go to bali; i exchanged 8000 Baht for Rupiah. Later, i discovered, as the Rupiah i had recieved wasn't going very far, that the banks own going rate was around 7/8 but they traded it at 4 in Don Mueng.

I know the airports expensive but surely not as expensive as halving the international exchange rate and pocketing what would be a roughly 50% commision fee. I've effectively paid 4000 Baht to exchange an original 8000 into Rupiah which equates to 4000 bahts worth in total.

Is such a high rate not criminal? Do i have a case for a refund? As there must be some kind of error here. Any help or experiences would be much appreciated.

Thanks in advance.

Jake

[Argus Tuft]

IDR?

How many Rupiah did you get for 8000 baht?

What does the exchange receipt say?

[Jake McClinton]

Yes IDR. I recieved 1,700,000 Rupiah. The receipt achknowledges that the exchange rate is half that advertised by Bangkok Bank. whilest on holiday i took money out of 8000 baht from a ATM there and recieved almost double the Rupiah for my baht.

[Argus Tuft]

Yep, miles off.

Might be closing that gate after horses bolted (?) but no need to say you are better to check it at the time.

I'd take the receipt to the bank (if possible the same booth) and try to get it investigated. If you go to booth/counter and get no happiness, then get to a Bangkok Bank in a tourist area, find a manager with good English and make your case.

Good luck

[Jip99]

This does not sound right at all.

The airport rates are not that bad'

http://donmueangairportthai.com/en/388-bank-currency-exchange

[Jake McClinton]

Today i passed through the same airport after being advised by Bangkok Bank to take the receipt to the branch. it wasn't an error, in fact the exchange rate they were giving today was even lower than what i had recieved. A guy next to me recieved 100 baht for 90,000 rupiah.

Eventually, they offered me a complaint form to fill out, but the final line from staff that it's just expensive at the airport.

[DogNo1]

It pays to do everything slowly and carefully in Thailand. Overcharging and short-changing (and simple mistakes) are always possible. Better luck next time.

[Suradit69]

If the rates were posted or if you asked for the rate, then the choice to go ahead with the transaction was yours. Caveat Emptor.

[lovetotravel]

We had this argument in the travel forum not long ago. Whether or not to use exchange booths at airports or not. Perfect example of why an ATM is a good way to go. Unless of course your bank charges very high ATM fees.

I've been "taken" more than once by currency exchange booths. You're tired, just got off an overnight flight, in a foreign country, in a rush, not familiar with the exchange rate, etc. Now, I just find the nearest ATM. Pretty much every airport in the world has one nearby.

[Jip99]

If the rates were posted or if you asked for the rate, then the choice to go ahead with the transaction was yours. Caveat Emptor.

Harsh - but true.

[NickJ]

I think the laws dont appy at airports.were you through passport control? I have also noticed that when it comes to buying gold, they charge way way more and dont list theweight in Baht ......

[KhunBENQ]

EDITED INR -> IDR (numbers are correct)

Indonesian Rupiah has an extreme range between the banks (its not one of the much traded currencies).

Bank rates from 22./23. May for THB / IDR note exchange:

http://daytodaydata.net/

229.885 to 384.615 (Siam Commercial Bank to SIA Money Exchange)

The latter one from is really on top, close to currency market prices.

http://www.xe.com/currencyconverter/convert/?Amount=1&From=THB&To=IDR

Would be between 1.8 to 3 million IDR for 8000 Baht.

Getting only 1.7 million at the airport does not sound too unlikely to me.

Exchange at the airport is always a rip off even for popular currencies.

IDR is one of the cases where it might be better to go the detour via USD (THB -> USD and in Indonesia USD -> IDR).

I understand your anger, but in your case everything wrong comes together (low amount, "exotic currency", change at airport).

IDR is not the most "exotic", there are some notes which are basically unusable outside the county

Simply look at the rates of Bangkok Bank and calculate the ratio between buying and selling rates for notes.

http://www.bangkokbank.com/BangkokBank/WebServices/Rates/Pages/FX_Rates.aspx

USD: 1.8 % (big notes)

EUR: 3.4 %

IDR: 48 % (!), about the same as Phillipine Peso.

Edited May 24, 2015 by KhunBENQ

[Argus Tuft]

(removed quoted post above, it was edited)

Small point, but IDR = Indonesian Rupiah

INR = Indian Rupee

Edited May 24, 2015 by Argus Tuft

[KhunBENQ]

I think the laws dont appy at airports.were you through passport control? I have also noticed that when it comes to buying gold, they charge way way more and dont list theweight in Baht ......

The currency exchange rip off at Suvarnabhumi is all over the airport area.

All booths with identical rate (for EUR about 4% worse than in town).

As far as I know the last loophole for better rates (Kasikorn at the railway link) has also been expelled).

[KhunBENQ]

Small point, but IDR = Indonesian Rupiah

INR = Indian Rupee

Thanks for observing, edited.

[Argus Tuft]

Final question for the OP:

Referring back to your original post, what was the exact exchange rate listed on the receipt, and what other fees does it show?

If it was simply a bad exchange rate, then there wasn't a 50% commission rate (as per the title). They just fleeced you on the rate, and the rate is the first thing you need to check if you have to exchange at an airport forex counter.

Either way, good lesson.

If I have to do an airport exchange (usually a smaller amount just for some immediate currency to have at my destination - then I at least check online for an official interbank rate first. Gives me a point of reference - I know the rate they offer at the currency exchange will be worse, but I can at least then tell if it is ridiculous rather than worse.

Today i passed through the same airport after being advised by Bangkok Bank to take the receipt to the branch. it wasn't an error, in fact the exchange rate they were giving today was even lower than what i had recieved. A guy next to me recieved 100 baht for 90,000 rupiah.

Different kettle of fish here - rates are always worse of course exchanging the other way. That guy was selling his IDR for baht. Always going to heavily favour the bank there

[Argus Tuft]

<snip>

As far as I know the last loophole for better rates (Kasikorn at the railway link) has also been expelled).

Oh? That's a shame, that booth at the top of the slope down to the ARL station was the one I always used too, they were like a calm island in a storm of outrageous exchange counters everywhere else..

[lovelomsak]

Do you not look at the posted rate before changing money? I always check the rate calculate roughly what is should receive before i do anything. I have good idea what I should get before I even get to the counter. Then i read the receipt before leaving the counter. I cannot believe a person who just do a money exchange with same attitude as ordering a hamburger Mc Donalds.

[HooHaa]

why not bring an atm card and withdraw cash at the airport?

[chicowoodduck]

You got the LOS hose job....move on to better things.....like a lady and really get the hose job...??

[MobileContent]

1700000 Indonesian Rupiah equals

4328.4007 Thai Baht

Normally at the airport you have to sign, so I always double check even when I exchange THB to some foreign currencies at the Departure gate.

Edited May 24, 2015 by MobileContent

[abrahamzvi]

It pays to do everything slowly and carefully in Thailand. Overcharging and short-changing (and simple mistakes) are always possible. Better luck next time.

This applies not only to Thailand. Banks and exchanges at airports mostly overcharge for currency exchanges. Few weeks ago I was flying from JFK (New York) to London and bought at the airport Pounds 200, for which I paid $354. When in London I used my USA ATM card to withdraw Pounds 200 and was debited with $303. In other words, I could have saved $51 by using my US Credit/ATM Card in the UK.

[mango66]

Yes IDR. I recieved 1,700,000 Rupiah. The receipt achknowledges that the exchange rate is half that advertised by Bangkok Bank. whilest on holiday i took money out of 8000 baht from a ATM there and recieved almost double the Rupiah for my baht.

you could not take out 8000 thb in Bali !!

so how many mistakes in your mail ??

Have you eyes ?

you know that on airport change is not advisable and expensive,

but still you did it !!

[mango66]

1700000 Indonesian Rupiah equals

4328.4007 Thai Baht

Normally at the airport you have to sign, so I always double check even when I exchange THB to some foreign currencies at the Departure gate.

i travelling international for almost 30 years world wide !

I once bought US$ - on airport,

as it was cheaper to pay for the Visa on arrival in $ - as they calculated $ to E 1:1 when was 1.1,4,

and a 2nd time for Africa, as in early time they didn't accept the Euro;

I can change in Niger, no big difference,

otherwise in 30 years never on airport !!

[gandalf12]

That is becuse it is a currency that they dont really want as it it is worthless

[mango66]

Today i passed through the same airport after being advised by Bangkok Bank to take the receipt to the branch. it wasn't an error, in fact the exchange rate they were giving today was even lower than what i had recieved. A guy next to me recieved 100 baht for 90,000 rupiah.

Eventually, they offered me a complaint form to fill out, but the final line from staff that it's just expensive at the airport.

You never ever have to change such a low nominated currency in a foreign country !!

never ever !!

In some countrys you get for 100$ - 1 kg of local banknotes !!

you never will change this kilo abroad !!

same with the rupie !!

[siam2007]

the rate you got was the REGULAR exchange rate Thai banks offer for such sort of currency. I don't understand why you did not change your IDR into US$ or SGD or Euro and then changed it again. That would have saved you a lot of money. I am in Indo frequently, and while it is always the best to withdraw money from ATMs there upon arrival, if you need some cash, change into USD and then change again. or buy some IDR at Superrich. Even superrich applies a huge spread of more than 10% when changing from or into IDR, and usually their spread is 0.3 - 1,0 % for strong curriencies. But if you need cash beforehand, this is still the best option and works both ways.

when leaving Indo, you can change into US$ or Euro at a moneychanger inside the international departure area (T2, don't know how the situation is at the new T3 that AirAsia uses) at relatively fair rates. Last time I even changed my remaining few IDR into Thai Baht directly as the spread was very fair even for the Baht

It always is a good idea to do homework first

Edited May 24, 2015 by siam2007

[Advocate]

Indonesian Rupiah is a high risk currency so there is probably a substantial risk premium. There may also be costs involved in handling low value currencies such as this whereby more labour is required to count and dispense the currency. It may also be a currency that is not much in demand in Bangkok, in which case you pay for low liquidity. Furthermore, it probably costs the bank just as much to dispense one million Baht of foreign currency as to dispense 8000 Baht of foreign currency, so low value transactions have consequences in transaction costs.

You should always be aware of exchange rates before you perform a transaction to be informed as to whether the rate offered is appropriate.

Complaining afterward is a waste of time.

The 50% "commission" is a fee not a commission.

I have found the Bank FX dealers at the airport to provide a reasonable FX rate for currencies of major countries. The best rate is always provided for SWIFT transactions between banks.

[Jake McClinton]

To those very few unhelpful comments, i say don't throw stones.

To the vast majority, of which has formed a helpful discussion, i thank you.

I know IDR is a poorly traded currency. But, how can it be so low as 4.6? when at the exact same time Bangkok Bank was advertising almost double that on their own website. Just think i've lost almost half of my money to their rate in the exchange when compared to the additional funds i had to secure from my visa card whilest in Bali, which traded at the normal rate.

My reciept achknowledges no extra charges just the exchange rate offered by Bangkok Bank at Don Mueang.

[Jake McClinton]

To those very few unhelpful comments, i say don't throw stones.

To the vast majority, of which has formed a helpful discussion, i thank you.

I know IDR is a poorly traded currency. But, how can it be so low as 4.6? when at the exact same time Bangkok Bank was advertising almost double that on their own website. Just think i've lost almost half of my money to their rate in the exchange when compared to the additional funds i had to secure from my visa card whilest in Bali, which traded at the normal rate.

My reciept achknowledges no extra charges just the exchange rate offered by Bangkok Bank at Don Mueang.