USA dollar exchange scam

[MrTee]

Doofus every one is scamming you..
you have a sign on your face that says "I'm doofus please scam me"

[CNXBKKMAN]

The price of processing the cash is factored into the price of the groceries on the shelves. When the supermarket banks all the bags of coins and bundles of notes the bank has charges for accepting them. It may take a long time to count and sort a supermarkets takings.

Really....

So a kid who takes his/her piggy bank to the bank and wants counting and cash returned can expect to receive less than the total pennies in the piggy bank because the cashier has to dump it into a machine that counts them automatically? In fact, on large scale, obscene quantities of coins, commercial banks actually use scales to determine quantity, and no fees there either.

There is no shame in being baffled by something. If you don't understand it just let it go and chill.

[bubba1]

At the places that give the best rates the £ and euro and many asian currencies are also tiered like the USD

Only a fool would change at kasikorn anyway.

http://www.superrichthailand.com/exchange

Edited March 2, 2016 by bubba1

[augustwest]

So the OP has been here for 2 days? 55555

[Pib]

OP,

It's not a scam...always been that way at all banks/financial institutions that exchange money...perfectly legal. Smaller denomination notes like a 1 dollar bill are less desired than larger notes such as a 50 or 100 dollar notes.

[gk10002000]

It has always been like that in Thailand. Simple reason is it takes more work to process $1 dollar bills than $100 dollar bills. It is kind of like buying in bulk

[blackcab]

You were using Kbank. Fact is, if you use a currency exchange that gives the very best rates (which is not Kbank), you will see many currencies have tiered rates.

US dollars, euros, Swiss francs, pounds, yen and others.

http://www.superrich.co.th/

It costs more to process and store lower denominations. Simple as that.

[bubba1]

I am not sure I understand this counting and storage thing..is there any other country that has tiered rates besides Thailand?

[blackcab]

Currency exchange is a business based on volume. With thin margins a dealer needs high volumes of value, not a high turnover of pieces of paper.

It's easy to exchange one hundred thousand dollars in 100 dollar bills. Not so easy to do it in 1 dollar bills. The dealer's use of staff time would be increased for no extra value.

A lot of exchanges offer poor rates, to the extent that the profit they make on the exchange more than covers the small wholesale cost they would be charged for passing on any small notes they have in excess.

If you do wholesale currency business (for example with Thomas Cook) then you will see they have tiered rates. Wholesale currency dealers actually ship physical currency both nationally snd internationally and it costs them money to do this.

Try selling Thomas Cook 1 million dollars in 1 dollar bills and see the rate they give you. I guarantee it will be less than if you offered them 100 dollar bills. One part of the reason is because 1 million dollars in 1 dollar bills weighs about a tonne. In 100 dollar bills it's about 10 kilos. 90 kilos of extra airfreight and secure transport costs money.

Edited March 2, 2016 by blackcab

[djayz]

A lot of exchange places give better rates for higher denomination notes not just USD

-------------------

It has always been that way.

For the bank the cost of counting and processing 100 small bills is higher than processing larger bills.

That is why a bank prefers larger bills.....on a cost versus value ratio basis....larger bills are better for them to handle.

In exactly the same way a store would rather sell one high profit item than 100 smaller profit items.

+1 You beat me to it. That's exactly how the bank explained it to me a few years ago when I asked.

As many people here have pointed out, this is not a scam - it's the bank's policy - like it or lump it.

To the OP: Next time you change US bills to THB, take the bigger notes with you (if you have any).

I usually use "Superrich Thai" (google it to find their website and address). They offer better rates than the banks do, but they also offer varied rates depending on the notes you want to exchange.

Edited March 2, 2016 by djayz

[Naam]

This was not an exchange booth in the airport or walking street in Pattaya. This was a bank branch and they did not have any rate difference by denomination on ANY other currency. One Euro or one thousand Euro bill exactly the same rate.

a real scam would be trying to exchange €1 and €1000 bills as neither exist

[TheFishman1]

TIT

[Don Mega]

The price of processing the cash is factored into the price of the groceries on the shelves. When the supermarket banks all the bags of coins and bundles of notes the bank has charges for accepting them. It may take a long time to count and sort a supermarkets takings.

Really....

So a kid who takes his/her piggy bank to the bank and wants counting and cash returned can expect to receive less than the total pennies in the piggy bank because the cashier has to dump it into a machine that counts them automatically? In fact, on large scale, obscene quantities of coins, commercial banks actually use scales to determine quantity, and no fees there either.

If the kid was in the USA and his/her piggy bank was full of Thai coins he would get nothing at all for them from the bank... turn that around and the kid was in Thailand with a piggy bank full of US coins the result would be exactly the same.

Your point is ?

Edited March 2, 2016 by Don Mega

[crazygreg44]

Why is everything a scam to some people

Different rates for different size bills happens EVERYWHERE. Larger bills less hassles .....duh!

In the U.S.A.this is illegal. Exchange THB to USD at any bank in the states and 1 baht is exchanged at exactly the same rate as 1,000 baht bill. So, duh, scam.

You are not in Kansas any more.

It is a legal and normal practise in SEA.

This happens with Euro bills in some places, too, for example here: http://www.siamexchange.co.th/index.php

[Suradit69]

Why is everything a scam to some people

Different rates for different size bills happens EVERYWHERE. Larger bills less hassles .....duh!

It does seem odd that farang in Thailand who don't understand how something works immediately announce it to be a scam..

And then when challenged, fearing even more loss of face, they compound the nonsense with mythical claims about how such things are done back in Farangland.

The first rule about finding yourself stuck in a hole is to stop digging.

[lkv]

If you call that a scam I think you haven't seen Kasikorn Bank's spread on the Phillipines Peso for example:

Buy Banknotes (Bank Buys) 0.52488

Sell Banknotes (Bank Sells) 0.79875

Purchase 1,000 peso, you pay 798 baht.

Sell your recently purchased 1,000 peso back to the bank, you receive back 525 baht.

You lose (798-525)/ 798 = 0.342. So about 34% of your money disappears lol.

Play like that with a million baht, and you will be confused about where 340K has gone.

But it's not a scam in the sense that nobody is forcing you to do that.

However, banks follow the principle that the majority of individuals will not bother to do the above calculations. And the majority don't.

That's how banks make money, it's not typically Thai, I have noticed outrageous spreads in Australia or UK as well on what is considered to be "exotic currencies", but the Philippines Peso in Thailand is not really an exotic currency (Filipinos travel to Thailand in decent numbers), so yeah....it's not a scam but a big big ripoff.

Edited March 2, 2016 by lkv

[Gulfsailor]

The price of processing the cash is factored into the price of the groceries on the shelves. When the supermarket banks all the bags of coins and bundles of notes the bank has charges for accepting them. It may take a long time to count and sort a supermarkets takings.

Really....

So a kid who takes his/her piggy bank to the bank and wants counting and cash returned can expect to receive less than the total pennies in the piggy bank because the cashier has to dump it into a machine that counts them automatically? In fact, on large scale, obscene quantities of coins, commercial banks actually use scales to determine quantity, and no fees there either.

Up to a hundred bucks in coins may be free to deposit / count / exchange at some banks and for kids, however anything over will cost you. The major banks and counting services charge anywhere between 1% and 8.9% for this in the US. Any retailer will confirm this.

[puukao]

Why do some people get houses quicker if they pay more upfront?

Why do some people get free drinks at bars?

Why do some people get taxi cabs faster than others?

Why did billie bob get the movie role i was born to play!!!! I lost out on billions!!!!

cry, cry, cry...

Now off to Cambodia border and exchange your baht there!!! bigger scam!!!

why do so many people care about money!!!!

just give me all your money and be at peace

[lkv]

I would have to advise the Thai readers here that if you intend to holiday in Philippines for example and you purchase your currency as described above, you will also get screwed 34% if say you purchase in excess and you change it back when you return to Thailand.

Yes, I know it's hard to digest. It involves a business dealing between a Thai individual and a Thai entity.

But I feel it's fair to let you know.

You're welcome.

Edited March 2, 2016 by lkv

[Aussieroaming]

Different rate for different denomination is practiced in counties other than Thailand, hence no scam

[Don Mega]

I would have to advise the Thai readers here that if you intend to holiday in Philippines for example and you purchase your currency as described above, you will also get screwed 34% if say you purchase in excess and you change it back when you return to Thailand.

Yes, I know it's hard to digest. It involves a business dealing between a Thai individual and a Thai entity.

But I feel it's fair to let you know.

You're welcome.

I would have to advise that not all readers of Thai visa are based in Thailand and those that do travel to the Philippines mostly do so more than once and would simply keep the peso's on hand for their next visit.

[Langsuan Man]

Why is everything a scam to some people

Different rates for different size bills happens EVERYWHERE. Larger bills less hassles .....duh!

In the U.S.A.this is illegal. Exchange THB to USD at any bank in the states and 1 baht is exchanged at exactly the same rate as 1,000 baht bill. So, duh, scam.

Please cite the LAW that you are talking about that "this is illegal" please

Everything in Thailand is a scam and everything in the US is illegal ????

Edited March 3, 2016 by Langsuan Man

[Bobotie]

Why is everything a scam to some people

Different rates for different size bills happens EVERYWHERE. Larger bills less hassles .....duh!

In the U.S.A.this is illegal. Exchange THB to USD at any bank in the states and 1 baht is exchanged at exactly the same rate as 1,000 baht bill. So, duh, scam.

Please cite the LAW that you are talking about that "this is illegal" please

Everything in Thailand is a scam and everything in the US is illegal ????

What is interesting, because the OP doesnt understand how forex works he labels it a scam...this is not a scam just ignorance on the part of the OP, of course citing the exact paragraph in the US would be very interesting so waiting in great anticipation for that one...

[sunnyjim5]

OP

If I arrive in Thailand with a $1000 and exchange it for Bht I will receive approx 35,000 Bht at today's exchange rate.

If I then immediately fly back to the US and change my Bht for $'s will I receive $1000? If not can I scream SCAM , claim fraud and make accusations of other assorted criminal behavior ?

[lkv]

Ok let's not get overly agitated here. It's not a scam.

To those who justified it by more work with smaller banknotes or whatever, it's not that, it's just the bank's desire to make more money on smaller denominations since many travelers have them

Same for certain spreads which are higher than others. Some much higher.

People are advised to look closely at the exchange rates.

Unfortunately for them and fortunately for the banks, they don't.

But that's not the bank's fault.