webfact Posted December 7, 2015 Share Posted December 7, 2015 BANK FEEBanking fees to reflect cost of service in move to reduce the use of cashSUCHEERA PINIJPARAKARN,ACHARA DEBOONMETHE NATIONBANGKOK: -- BANKS' fees are poised for a change to better reflect actual costs and pave the way for a cashless society."The structure is distorted. The fees for paper-based transactions are very cheap, compared to the associated cost. Banks are now cross-subsidising them with fees collected from electronic transactions," Veerathai Santiprabhob, governor of the Bank of Thailand, said in a recent interview.While the cheque fee is only Bt15, the actual cost is far more. Customers can withdraw money from an ATM without any fee, but banks carry a huge cost for cash management at ATMs, he said.Anuchit Anuchitanukul, adviser to the Finance Ministry's National e-Payment project, has said that Bt7 trillion is withdrawn from ATMs each year. Banks spend over Bt10 billion on armoured vans and other expenses to fill up ATMs.The project aims to reduce cash usage. This will require the creation of more points of sale across the country, as now there are fewer than 100,000, versus the minimum of 2 million as recommended by the Bank of Thailand's study.To maintain their retail customer base, banks are expected to compete in reaching out to merchants to establish their own points of sale. Small merchants will also require mobile points of sale or mPos to support their small customers.Under the project, companies registered with the Commerce Ministry cannot deny e-payments.Banks are now offering electronic payment services through different systems. The cross-system operations result in higher charges for consumers.While the project will help reduce cash transactions, authorities are considering the next step - a central settlement house to oversee cross-bank transactions through ATM cards, the Internet and debit cards."The central system will be a superhighway. It will be the single gateway for all banks and state agencies," he said.Further facilitating the move to a cashless society will be the Any ID e-payment module - a collaboration of the Finance Ministry and the central bank. It will allow anyone to transfer money by using his ID card, mobile number or email address.Veerathai said the central e-payment settlement agency and the Any ID module should be completed by the third or fourth quarter of next year.With a single e-payment system, banks will experience a drop in operating fees and this would lead to a drop in fees that end-users have to pay.Banks have enjoyed an increase in fee income from Bt127 billion in 2012 to Bt155.8 billion last year.Fee income minus operating costs has also risen from Bt101.51 billion to Bt124.77 billion, according to the central bank.Contributors to fee incomeCredit cards now contribute 18 per cent of the fee income, followed by ATMs and other e-banking services at 17 per cent. In the first nine months of this year, gross fee income reached Bt126 billion and net fee income Bt102 billion, indicating that banks spent as much as Bt24 billion on operations.The infrastructure gateway is expected to reduce associated costs.Under the current system, senders are charged for transferring money. Under the new scheme, both senders and recipients will shoulder a fee. This is expected to lead to competition among banks to retain customers.The scheme looks possible to implement successfully, thanks to the proliferation of smartphones, which are estimated to account for over half of phones in use in the country.Cheap prices have boosted their popularity as well as faster mobile data services. Soon, smartphone use would be 100 per cent."Years ago when the video player was launched, I would laugh if someone said all houses would have one. Likewise, when it comes to smartphones, it is not beyond the realm of possibility for all Thais to own a smartphone one day," Anuchit said.Consumers are expected to support the changes, since they are the ultimate beneficiaries.Source: http://www.nationmultimedia.com/business/Banking-fees-to-reflect-cost-of-service-in-move-to-30274466.html-- The Nation 2015-12-08 Link to comment Share on other sites More sharing options...
Thian Posted December 7, 2015 Share Posted December 7, 2015 Then why do i have to pay 180 baht + 2.5 euro for every transaction of 10.000 baht? It's another scam against foreigners. Link to comment Share on other sites More sharing options...
Bluespunk Posted December 8, 2015 Share Posted December 8, 2015 If tmb stop charging 500 baht for a new ATM card it might make them more popular. Link to comment Share on other sites More sharing options...
Toknarok Posted December 8, 2015 Share Posted December 8, 2015 I'll bet they won't charge a flat rate of 180 baht for all withdrawals like they do for foreign bankcards. It will probably be 10 baht for local (Thai) cards and I wouldn't be surprised if they lifted the 180 baht to 200. Double pricing once AGAIN. Link to comment Share on other sites More sharing options...
jabis Posted December 8, 2015 Share Posted December 8, 2015 I'm on a (single) highway to hell Link to comment Share on other sites More sharing options...
taony Posted December 8, 2015 Share Posted December 8, 2015 A shop tried to charge me 2% for using my debit card once,claiming it was good because it was less than the 3% credit card charge. Link to comment Share on other sites More sharing options...
jabis Posted December 8, 2015 Share Posted December 8, 2015 (edited) A shop tried to charge me 2% for using my debit card once,claiming it was good because it was less than the 3% credit card charge. The actual reason comes from the fact that the shop owner needs to pay the company providing the card reader a fee for everything sale they use it on - because who reads the fine print here anyways x) Edited December 8, 2015 by jabis Link to comment Share on other sites More sharing options...
kingalfred Posted December 8, 2015 Share Posted December 8, 2015 All bull**** from banks. They charge for atm cards making a profit. But more significantly they make more from all the funds that they have in accounts giving customers no interest or 0.5%. Screw Thai Banks ATM fees. It will be withdrawl from using non automatic tellers if this happens Link to comment Share on other sites More sharing options...
Thian Posted December 8, 2015 Share Posted December 8, 2015 If all foreigners bring cash to Thailand and change it at the banks they will stop the 180 baht surcharge. It costs them too much time and also the bankemployee's can't speak english so they hate it to help farangs. Link to comment Share on other sites More sharing options...
Marcusv Posted December 8, 2015 Share Posted December 8, 2015 Well the Thai s have already begun robbing foriegners with a 200 baht ATM fee. That is outrageous amount. More than a western country It was 150 and rocketed to 200. Is there any end with these people Link to comment Share on other sites More sharing options...
topt Posted December 8, 2015 Share Posted December 8, 2015 If all foreigners bring cash to Thailand and change it at the banks they will stop the 180 baht surcharge. It costs them too much time and also the bankemployee's can't speak english so they hate it to help farangs. Well the Thai s have already begun robbing foriegners with a 200 baht ATM fee. That is outrageous amount. More than a western country It was 150 and rocketed to 200. Is there any end with these people So open a Thai bank account and deposit some money - then you could stop this incessant moaning about ATM fees Link to comment Share on other sites More sharing options...
sumrit Posted December 8, 2015 Share Posted December 8, 2015 (edited) Well the Thai s have already begun robbing foriegners with a 200 baht ATM fee. That is outrageous amount. More than a western country It was 150 and rocketed to 200. Is there any end with these people In the UK major outlets (supermarkets, etc) offer a 'cashback' system where, as well as paying for purchased items you can also get say £50 cash from the cashier and have that added to your bill when paying by card. In fact, when I've gone back to the UK I've found that supermarket cashiers actually ask if I want any cash back. When paying for most things by card you don't need as much cash in your wallet and being able to get cash back in this way is a lot more convenient than queuing up at ATM's. If supermarkets, petrol stations, etc in Thailand were to implement a similar system we could get the actual cash we need in this way without having to pay any 'ATM fee' to the banks. Edited December 8, 2015 by sumrit Link to comment Share on other sites More sharing options...
Thian Posted December 8, 2015 Share Posted December 8, 2015 If all foreigners bring cash to Thailand and change it at the banks they will stop the 180 baht surcharge. It costs them too much time and also the bankemployee's can't speak english so they hate it to help farangs. Well the Thai s have already begun robbing foriegners with a 200 baht ATM fee. That is outrageous amount. More than a western country It was 150 and rocketed to 200. Is there any end with these people So open a Thai bank account and deposit some money - then you could stop this incessant moaning about ATM fees Yes all tourists coming to Thailand should open a bankaccount to not get extorted by Thai banks........ Link to comment Share on other sites More sharing options...
Jip99 Posted December 8, 2015 Share Posted December 8, 2015 Then why do i have to pay 180 baht + 2.5 euro for every transaction of 10.000 baht? It's another scam against foreigners. Nobody forces you to use this expensive method of obtaining cash. You pays your money and you takes your choice. Link to comment Share on other sites More sharing options...
Jip99 Posted December 8, 2015 Share Posted December 8, 2015 If all foreigners bring cash to Thailand and change it at the banks they will stop the 180 baht surcharge. It costs them too much time and also the bankemployee's can't speak english so they hate it to help farangs. Well the Thai s have already begun robbing foriegners with a 200 baht ATM fee. That is outrageous amount. More than a western country It was 150 and rocketed to 200. Is there any end with these people So open a Thai bank account and deposit some money - then you could stop this incessant moaning about ATM fees Yes all tourists coming to Thailand should open a bankaccount to not get extorted by Thai banks........ Are you a tourist ? There are other methods of planning cash requirements. Link to comment Share on other sites More sharing options...
casualbiker Posted December 8, 2015 Share Posted December 8, 2015 Then why do i have to pay 180 baht + 2.5 euro for every transaction of 10.000 baht? It's another scam against foreigners. because you are using a Non Thai bank card! Link to comment Share on other sites More sharing options...
jaywalker Posted December 8, 2015 Share Posted December 8, 2015 In a cashless society, it is easier to implement capital controls. The whole idea of eliminating cash is very Orwellian. Link to comment Share on other sites More sharing options...
bangon04 Posted December 8, 2015 Share Posted December 8, 2015 Well the Thai s have already begun robbing foriegners with a 200 baht ATM fee. That is outrageous amount. More than a western country It was 150 and rocketed to 200. Is there any end with these people "Consumers are expected to support the changes, since they are the ultimate beneficiaries." Link to comment Share on other sites More sharing options...
wabothai Posted December 8, 2015 Share Posted December 8, 2015 In a cashless society, it is easier to implement capital controls. The whole idea of eliminating cash is very Orwellian. worse! 100% money (flow), and therefore, complete income tax control. Eventually it will happen in Thailand. Cashless society, Europe is almost there. Poor excuses from the banks. Link to comment Share on other sites More sharing options...
taony Posted December 8, 2015 Share Posted December 8, 2015 A shop tried to charge me 2% for using my debit card once,claiming it was good because it was less than the 3% credit card charge. The actual reason comes from the fact that the shop owner needs to pay the company providing the card reader a fee for everything sale they use it on - because who reads the fine print here anyways x) No they don't. And even if they did that's their cost of doing business. Increase your prices and stop trying to rip people off. Do they add a service fee for what they pay to clean the bathrooms? Telephone bill? Link to comment Share on other sites More sharing options...
LivinLOS Posted December 8, 2015 Share Posted December 8, 2015 I would use my Thai debit card much more if Thai banks provided a robust and total fraud protection plan. I have multiple friends who have been skimmed and defrauded with Thai ATM cards, one for 600k THB.. And the banks just close ranks, refuse to investigate, deny any wrongdoing. Who wants to use the card everywhere when thats the facts ?? Link to comment Share on other sites More sharing options...
frimu Posted December 8, 2015 Share Posted December 8, 2015 I'll bet they won't charge a flat rate of 180 baht for all withdrawals like they do for foreign bankcards. It will probably be 10 baht for local (Thai) cards and I wouldn't be surprised if they lifted the 180 baht to 200. Double pricing once AGAIN. it has happened already. :-) Link to comment Share on other sites More sharing options...
rakman Posted December 8, 2015 Share Posted December 8, 2015 This is a world wide movement to track people by their electronic money usage. The Central Banks, governments and UN are salivating at the control created when cash is eliminated. Welcome the the new world order. Link to comment Share on other sites More sharing options...
jonclark Posted December 8, 2015 Share Posted December 8, 2015 Despite all the foreigners spitting blood at the unfairness of the Thai banking system. Back in Thailand the majority of the banks customers - the Thai people may benefit from these changes, which is who these changes are aimed at! Link to comment Share on other sites More sharing options...
Langsuan Man Posted December 8, 2015 Share Posted December 8, 2015 Well the Thai s have already begun robbing foriegners with a 200 baht ATM fee. That is outrageous amount. More than a western country It was 150 and rocketed to 200. Is there any end with these people Not true on many levels, the fee went from 150 to 180 and then to 200 hardly a definition of rocketed and a search will come up with the facts, not a supposition of more than a western country If I am not mistaken both the US and UK are "Western" countries: UK debit card overseas chargeshttp://www.moneysavingexpert.com/travel/overseas-card-charges You're paying record ATM fees http://money.cnn.com/2015/10/05/pf/atm-overdraft-fees/ Link to comment Share on other sites More sharing options...
tuanku Posted December 8, 2015 Share Posted December 8, 2015 Try a small business account at a Thai bank! 1. No ATM card. You have to go into the bank to complete every cash withdrawal or transfer 2. e-banking you can only use to check your transactions, cannot do any actual banking with it 3. No statements or notifications of incoming transfers, have to request pay in slips from payees to track money in. Altogether a very poor and cumbersome service which greatly hampers efficient business finance Link to comment Share on other sites More sharing options...
phrisco17 Posted December 8, 2015 Share Posted December 8, 2015 A shop tried to charge me 2% for using my debit card once,claiming it was good because it was less than the 3% credit card charge.The actual reason comes from the fact that the shop owner needs to pay the company providing the card reader a fee for everything sale they use it on - because who reads the fine print here anyways x) No they don't. And even if they did that's their cost of doing business. Increase your prices and stop trying to rip people off. Do they add a service fee for what they pay to clean the bathrooms? Telephone bill? In the US banks charge 2 to 4% on each credit card transaction and it is considered bad business ethics (if not illegal) to attempt to charge the customer for the credit card bank fee. The fee is included in the price of goods sold. Link to comment Share on other sites More sharing options...
connda Posted December 8, 2015 Share Posted December 8, 2015 Looking into my crystal ball, I portend a very large bonus the in future for Thai bank executives. Cashless society. Tell me how that's going to work out in rural Thailand, or for that matter, rural anywhere. Link to comment Share on other sites More sharing options...
casualbiker Posted December 8, 2015 Share Posted December 8, 2015 A shop tried to charge me 2% for using my debit card once,claiming it was good because it was less than the 3% credit card charge.The actual reason comes from the fact that the shop owner needs to pay the company providing the card reader a fee for everything sale they use it on - because who reads the fine print here anyways x) No they don't. And even if they did that's their cost of doing business. Increase your prices and stop trying to rip people off. Do they add a service fee for what they pay to clean the bathrooms? Telephone bill? In the US banks charge 2 to 4% on each credit card transaction and it is considered bad business ethics (if not illegal) to attempt to charge thecustomer for the credit card bank fee. The fee is included in the price of goods sold. That's because the US firms presume the customer will pay via card. In Thailand the smaller retailers presume people will pay via cash as that what they usually do! In the US it's not illegal to pass the % to the customer. In the UK it is. Link to comment Share on other sites More sharing options...
casualbiker Posted December 8, 2015 Share Posted December 8, 2015 Here is a PDF from a card company detailing the information for traders: Link to comment Share on other sites More sharing options...
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