Schwab vs. TransferWise

[jakow]

I use Schwab bank which has no foreign transaction fees and refunds all foreign ATM fees. Does anybody know if it's cheaper to just take money from Thai ATMs using my Schwab debit card, or is it cheaper to send the money to my Thai bank with TransferWise?

[bluebluewater]

In this case I would think it would be a more of a matter of how fast you want whatever amount that you are needing here in Thailand as to which was you want to do it.  With the ATM debt card method your cost is going to be zero but depending on amount it might take a few trips to the ATM machine to get the entire amount.  TransferWise might cost you some money to do but the entire amount would come at one time.

 

I get 20K Bt every time I go to the machine using my Schwab card.  I've never tried for a higher amount although I think that is possible.  I have only used it once a day but here again, I think it is possible to make more than one ATM withdrawal a day.

 

Cheers!

[jakow]

2 minutes ago, bluebluewater said:

In this case I would think it would be a more of a matter of how fast you want whatever amount that you are needing here in Thailand as to which was you want to do it.  With the ATM debt card method your cost is going to be zero but depending on amount it might take a few trips to the ATM machine to get the entire amount.  TransferWise might cost you some money to do but the entire amount would come at one time.

 

I get 20K Bt every time I go to the machine using my Schwab card.  I've never tried for a higher amount although I think that is possible.  I have only used it once a day but here again, I think it is possible to make more than one ATM withdrawal a day.

 

Cheers!

 

Thanks. Do you happen to know what conversion rate will be used when you withdraw from the ATMs here? Is it set by Schwab or by the Thai bank? I wouldn't think Schwab uses the actual rate (like TransferWise does) but maybe they do?

[55Jay]

Card is Visa logo, use Visa exchange.

24 August, Visa FOREX rate shows 34.686531

Visa Forex Page Link

 

Mid-market on XE indicates 34.6357

 

.05 diff.  You can work it out based on value of your transaction. 

 

I've never used Transferwise so can't comment on their fees.  I've abandoned ATMs and Over the Counter withdrawals and just do 1 ACH transfer per month from Schwab to Bangkok Bank via New York.

Edited August 24, 2016 by 55Jay
Add Visa Forex link

[bluebluewater]

19 minutes ago, jakow said:

 

Thanks. Do you happen to know what conversion rate will be used when you withdraw from the ATMs here? Is it set by Schwab or by the Thai bank? I wouldn't think Schwab uses the actual rate (like TransferWise does) but maybe they do?

I am uncertain as to who sets the rate but I have looked at the daily rate being offered at the Thai bank who's ATM that I am using and then checked the Schwab acct a day or so later after the transaction has occurred the the conversion rate was virtually identical.  Since I am withdrawing Thai baht from a Thai bank I would guess that they are setting the conversion rate which, give a satang or two, is going to competitive to anyone else on the street.

 

This is not something that I shop at all.   When I need money I go get it.  If it were a huge amount then I would take a little more time with it.

[Pib]

15 minutes ago, jakow said:

 

Thanks. Do you happen to know what conversion rate will be used when you withdraw from the ATMs here? Is it set by Schwab or by the Thai bank? I wouldn't think Schwab uses the actual rate (like TransferWise does) but maybe they do?

ATMs give you the card network's (i.e., Visa, Mastercard, UnionPay, etc) rate assuming you do not select a DCC transaction if the ATM offers a DCC rate...they probably will not call it a DCC but something like Bank Rate, etc.  DO NOT accept a DCC transaction as it will be 3 to 4% lower than the card network rate....continue on to get the card network rate.   Card network rates are plus or minus a few stang of the Thai bank TT Buying Rate used for incoming wire transfers.   And don't forget if your card-issuing bank charges a foreign transaction fee say of 3% which seems to be common  (Schwab card is 0%) then that 3% fee effective reduces your exchange rate by 3%.

 

For obtaining small amounts, say below $1000/Bt35K unlikely you'll find a better deal than a debit card that charges no foreign transaction fee and reimburses ATM Use Fees like the Thai bank Bt200 fee on foreign card.   Since you are not be hit with any sending or receiving fees and get the same exchange rate plus or minus a few stang of the TT Buying Rate used for wire transfer it the cheapest method "and fastest" way to get funds...and at the same rate as a wire transfer.    

 

Heck, I've got a couple of no foreign transaction fee which reimburse ATM fee cards which I use for my living expenses in Thailand....haven't needed  to do a wire transfer since around mid 2011/since getting the cards.   Use such debit cards along with no foreign transaction fee "credit cards" (which also pay 1.5% cash back) then you basically have zero need to do wire transfers...wait for the money to arrive in a few days usually...and pay the associated wire fees.

 

 

 

 

[KhunBENQ]

Simply agree with above post.

Be happy if you still have a bank that reimburses the Thai ATM fee (200 Baht).

The last German bank that advertised this has stopped it recently.

No way that an electronic transfer will beat a cost free ATM withdrawal.

And cash (big notes) beats them all at the well know exchanges

[55Jay]

A notional transaction for $1,000 (Schwab's daily ATM cash limit/No Foreign Transaction Fees).

 

Schwab/Visa@ 34.716528 = 34,716.53 Baht, rounded down to viable ATM amount of 34,700.   Noting, of course, that amount exceeds transaction limit of all Thai bank ATMs, so even using Krungsi or TMB, you would still have to do two transactions, both incurring 180 ATM fees, ultimately reimbursed. 

 

Transferwise@ mid-market rate 34.58= 34,580 - $14.45 fee indicated on their website calculator, results in 34,080.32 Baht in your pocket.  Note, the fee is taken out up front, so the transfer would actually be $985.55 @34.58 = 34, 080.32 Baht.

 

34,700 Card (rounded down from 34,716.53)

34,080.32 Transferwise

(619.68) Baht

 

 

[jakow]

3 hours ago, 55Jay said:

A notional transaction for $1,000 (Schwab's daily ATM cash limit/No Foreign Transaction Fees).

 

Schwab/Visa@ 34.716528 = 34,716.53 Baht, rounded down to viable ATM amount of 34,700.   Noting, of course, that amount exceeds transaction limit of all Thai bank ATMs, so even using Krungsi or TMB, you would still have to do two transactions, both incurring 180 ATM fees, ultimately reimbursed. 

 

Transferwise@ mid-market rate 34.58= 34,580 - $14.45 fee indicated on their website calculator, results in 34,080.32 Baht in your pocket.  Note, the fee is taken out up front, so the transfer would actually be $985.55 @34.58 = 34, 080.32 Baht.

 

34,700 Card (rounded down from 34,716.53)

34,080.32 Transferwise

(619.68) Baht

 

 

 

Thanks for this. You're right. I did an ATM withdrawal last night and checked my statement and converted that amount to Thai baht based on the current rate. The only fee I was charged was the 200 baht ATM fee. I didn't realize until now that Schwab withdrawals are free overseas.

[Pib]

And Schwab will reimburse that Bt200 Thai ATM Use Fee at the end of your monthly statement cycle.  No foreign transaction fee and reimbursement of ATM fees.

[augustwest]

I use Schwab and I go to a Bangkok bank outlet with my passport. Take out as much as I want,I think the rate is better than an ATM. Also no ATM fees,which they do pay anyway but I feel better because,I believe there is no free lunch. With all the attention on ATM's at this time my card never sees one.

[gk10002000]

 I never transferred money so not the same thing, but I thought I would mention that on all my trips when I used my debit card (Etrade, not schwaub), a quick glance at the numbers on the transaction slip and the numbers posted on the walk up money conversion places showed that I got a better deal using my debit card than say, taking USD cash to the cash places and exchanging it.  Not surprising since the cash places have costs, employees, rents, etc.  So I think the transfer fees will be neck and neck with the Schwaub no fee debit ATM

[robin33]

I'm gonna use revolut. Any used it before , have it now a few months in Europe it works fine


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[Pib]

10 hours ago, augustwest said:

I use Schwab and I go to a Bangkok bank outlet with my passport. Take out as much as I want,I think the rate is better than an ATM. Also no ATM fees,which they do pay anyway but I feel better because,I believe there is no free lunch. With all the attention on ATM's at this time my card never sees one.

Same exchange rate (i.e., the Visa network rate) whether you do the withdrawal at an ATM or at the bank counter.  Only difference is the ATM charges the Bt200 fee where that is not charged for an over the counter withdrawal using the card.

[55Jay]

On 8/25/2016 at 10:00 PM, augustwest said:

I use Schwab and I go to a Bangkok bank outlet with my passport. Take out as much as I want,I think the rate is better than an ATM. Also no ATM fees,which they do pay anyway but I feel better because,I believe there is no free lunch. With all the attention on ATM's at this time my card never sees one.

You are still limited by the ATM card's daily limit of $1,000 doing over the counter transactions, but it is a great way to get 30,000+ Baht (depending on FOREX) at one time vs. doing 2 ATM transactions.

 

As Pib noted, it's still a Visa transaction so the exchange rate is the same as using the ATM.

Edited August 27, 2016 by 55Jay