How high is the visa subcharge for hotels and restaurants in Thailand really ?

[Sandman77]

Helllo!

Some hotel and restaurant charge 3 procent using kk!

Some does not!

Airplane directly paid at thai air counter no sub charge travel agency does !

What Kk company's really charge ?

Visa in my homecountry

If there is a sub charge in any country I use my visa it will refund when I complain , but only if subcharge showed in a seperate bill,but travel agency's here not want give a separate bill here coz the know there is a possibility got subcharge back on foreign kk

True for example did not allowed payment of foreign kk for some reason !

 

 

Sent from my iPhone using Thaivisa Connect

[theguyfromanotherforum]

It is pointless to fight this in a third world country. That being said, I have never been charged extra for using a credit card. Smart business will build that cost into the price anyway. A lot of Thais (at least in Bangkok) use credit cards, so I doubt and major business would stoop this low.

[Upnotover]

get over it, it costs what is costs, to make a fuss is a waste of time. you already have been here some time so ought to know better.

[55Jay]

If the business has a strict policy on charging an additional % sur charge, my policy is to walk away.  They have their policy.  I have mine. 

[Pib]

^^^^Ditto.   Also for those merchants who will only accomplish a purchase for a foreign card if using a DCC transaction.

[Suradit69]

21 hours ago, theguyfromanotherforum said:

It is pointless to fight this in a third world country.

So you're saying that (parts of) the US is a third world country? Re: the pricing of pastrami sandwiches in New York etc.

 

Quote

Under the law, merchants can list the price as $10 for cash customers and $10.20 by credit card, or they can list it as $10.20 with a 20-cent "discount" for cash customers. But they cannot list it as $10 with a 20-cent or 2% "surcharge" for credit-card purchases.

 

http://www.usatoday.com/story/news/politics/2017/01/10/supreme-court-new-york-credit-card-surcharge-price-speech/96391718/

 

 

Quote

 

But in a contentious legal ruling that is still being disputed, a U.S. District Court determined last year that merchants are allowed to pass along the cost of those credit-card interchange fees to customers. Consumer advocates say permitting surcharges is a slippery slope. “If a national sales tax of 2, 3, or 4 percent were being proposed, everyone would be up in arms,” ConsumerWorld.org founder Edgar Dworksy points out on his site.

But take a deep breath. You can avoid the fee by using a debit card, for one thing. And there are laws prohibiting these surcharges in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

 

 

http://business.time.com/2013/01/25/a-4-surcharge-for-using-a-credit-card-legal-but-not-likely/

[12DrinkMore]

22 hours ago, theguyfromanotherforum said:

Smart business will build that cost into the price anyway.

Yes, it is <deleted> annoying to pay extra when using cash.

[williamgeorgeallen]

we charge our customers 3%. it is a good system and it encourages customers to pay cash. credit card company takes it all unless you are doing a lot of sales. 

[cnx355]

Just back from Kata beach last week.  A few Restaurant want to charge an extra 3% to use the credit card to pay  in Thai Bahts . But if you use the credit card dynamic conversion to paid in you home currency they do not.

 

BUT you can read on the slip that the Bank in Thailand will charge 3,5 % fee to convert the currency.

 

I guess the restaurant owners push you to the dynamic currency converter and the bank do not charge then the extra fee this way.

[mike324]

the subcharge is around 3% for using visa, and not it will never appear on a bill so no need to demand service providers to put it on the bill

[Sydebolle]

The VISA-charge we pay is 2% of the amount plus 7% VAT. So, if the bill is THB 100 then we pay THB 2 + 7% = THB 2.14.  
We absorb this unilateral yet if there is some stock clearance or so we clearly mark the article as "cash only". Never had a problem with nobody as the customers know in advance what they are in for. 

[masuk]

On 19/03/2017 at 6:31 PM, Sandman77 said:

 

Helllo!

Some hotel and restaurant charge 3 procent using kk!

Some does not!

Airplane directly paid at thai air counter no sub charge travel agency does !

What Kk company's really charge ?

Visa in my homecountry

If there is a sub charge in any country I use my visa it will refund when I complain , but only if subcharge showed in a seperate bill,but travel agency's here not want give a separate bill here coz the know there is a possibility got subcharge back on foreign kk

True for example did not allowed payment of foreign kk for some reason !

 

 

Sent from my iPhone using Thaivisa Connect

 

"subcharge".  I've never heard of this term.   "Surcharge" is vastly different, where a percentage is added to the bill.

[SiSePuede419]

I have no problem paying 50B cash for a meal...

 

 Love the fermented Thai noodles "kanom jinn" ?

[Pib]

3 hours ago, cnx355 said:

Just back from Kata beach last week.  A few Restaurant want to charge an extra 3% to use the credit card to pay  in Thai Bahts . But if you use the credit card dynamic conversion to paid in you home currency they do not.

 

BUT you can read on the slip that the Bank in Thailand will charge 3,5 % fee to convert the currency.

 

I guess the restaurant owners push you to the dynamic currency converter and the bank do not charge then the extra fee this way.

The Bank of Thailand is not involved in surcharges.   It  a local bank which is process the transcation for the merchant and that local bank's rate will vary from other local banks by a small amount....but they all seem to be in the 2.75% to 4% ballpark.

 

The 3.5% fee to convert you mention above is the "merchant" deciding to use Dynamic Currency Conversion (DCC) to process the purchase/payment with your foreign card as you sai.  Or basically give you a 3.5% lower exchange rate than the Visa/Mastercard exchange rate.  DCC is pure additional profit for the merchant & his local bank....and purely up to the merchant as to whether the use DCC or not....the more greedy ones will use DCC.     The 3.5% lower rate is actually the DCC rate of the local bank the merchant is using to process card transaction....such as Bangkok Bank, Kaiskorn Bank, SCB, just whatever local bank the merchant is using.   Merchants don't interface directly into the Visa/Mastercard/etc., network...they get this support from whatever local bank they sign up with to process card transactions/provide the Point of Service (POS) card machines.

 

Additionally, any surcharge is a separate fee from a DCC rate.   Now merchants who apply a surcharge an do DCC are greedy to the 10th power.   I wouldn't do business with a such a merchant....in fact, I don't do business with any merchant that adds a surcharge for card usage or will only do DCC with a foreign card.  Greedy bastards.

Edited March 20, 2017 by Pib

[impulse]

Personally, I prefer a shop or restaurant that adds the legitimate surcharge for pulling out the plastic, instead of hitting everyone for the same price.  Why should I subsidize other people's Visa fees when I pay with cash?  

 

And if I pay with the plastic, I'm just reimbursing the vendor for their added expense.  Seems pretty reasonable.

Edited March 20, 2017 by impulse

[Pib]

Maybe you want to reimburse him for the other taxes/fees he pays to run a business also.   I expect merchants have card usage costs already built into the pricing (not matter what they say & even for cash payments) and any surcharge is just more profit for them.

 

Plus cash requires more manhours and security procedures to manage/safeguard....this is all added business cost.   Maybe cash payers should pay more to cover that cost?

 

Whether it's cash or card payment there are costs involved to the business and those costs need to be built into their prices.  And anytime you start charging customers differently, like through surcharges based on how you pay, you just start pissing off some customers who will not do business with you in the future or cancel an almost sale.   But hey, I guess many merchants want that extra 2 or 3% profit off some customers regardless of loss business.

Edited March 20, 2017 by Pib

[wump]

Try that pub on the left of Nana Plaza entrance. 8% surcharge!

[JAS21]

My wife always asks, is there an extra charge for using a Credit Card and if there is she pays cash. Our local Pharmacy, which must take millions every day charges. Local Hospitals don't charge but it's cash if under 1000thb. You can't beat the system so just work with it.

[impulse]

9 hours ago, Pib said:

Maybe you want to reimburse him for the other taxes/fees he pays to run a business also.   I expect merchants have card usage costs already built into the pricing (not matter what they say & even for cash payments) and any surcharge is just more profit for them.

 

If those taxes and other expenses are higher for services I receive than others, no problem at all.  

 

Like delivery.  If I pick up my goods at the store, I certainly don't want to pay for delivery.  Nor do I want to subsidize delivery for others because it's "built into the price".

 

[freebyrd]

Never happens to me in Cambodia, but to a great many on here this country is a s**thole right......

 

Also, if you deal with decent people like the Pharmacy I use on Sukhumvit, they waive the 3% as a mark of goodwill.

 

When I was a fitness manager in PI, I didn't pass this charge to potential new club members as they would have walked out of the door, some money is better than no money.

 

In many ways, and this is one of them,Thailand needs to see the wood, as is too often the case, it only sees the trees.

[flyswat]

All Americans should put their hands up as the cause of the credit card  "add on " to everything. They pay  add on "tips" for everything! instead of realistic fair wages........ Instead of providing  a "tip" for extraordinary outstanding good service !

 

A far more annoying and often threatening payment procedure.

[55Jay]

5 hours ago, flyswat said:

All Americans should put their hands up as the cause of the credit card  "add on " to everything. They pay  add on "tips" for everything! instead of realistic fair wages........ Instead of providing  a "tip" for extraordinary outstanding good service !

 

A far more annoying and often threatening payment procedure.

Credit card company surcharges have nothing to do with tipping in the US. 

[cnx355]

On 20/03/2017 at 7:11 PM, impulse said:

Personally, I prefer a shop or restaurant that adds the legitimate surcharge for pulling out the plastic, instead of hitting everyone for the same price.  Why should I subsidize other people's Visa fees when I pay with cash?  

 

And if I pay with the plastic, I'm just reimbursing the vendor for their added expense.  Seems pretty reasonable.

You forgot that merchant show the VISA-MasterCard logo to attract more customers...this is part of the business and they have to pay to get the business.  They use advertising and it is the same. All customers pay in the end.

 

But they   could  be wiser to offer a discount to cash customer,. and this would respect the credit card agreement with VISA-Mastercard.

The real business do not charge their customer an extra amount to use the credit card....the greedy one do....

 

But, this is just my opinion and other may see this differently.....Great to have free speach !

 

[ableguy]

On 3/19/2017 at 4:09 PM, theguyfromanotherforum said:

It is pointless to fight this in a third world country. That being said, I have never been charged extra for using a credit card. Smart business will build that cost into the price anyway. A lot of Thais (at least in Bangkok) use credit cards, so I doubt and major business would stoop this low.

How wrong you are about fifty percent of all my transactions ask for three per cent.

[theguyfromanotherforum]

How wrong you are about fifty percent of all my transactions ask for three per cent.

Where are you located and where do you shop? Frankly, I only use my cards in supermarkets and restaurants inside malls. Never been charged extra.

[RedQualia]

A bit of a late reply, but even so, worth noting that some foreign banks provide better terms than others, and/or, that some provide some really horrible terms for international use. The card may appear great in one's home country, but when used overseas can include the bank's own crappy exchange rate (DCC may offer a substantially better rate), an immediate foreign transaction fee (per transaction), as well as pretty high interest rates that begin to accrue immediately, such that when using some credit cards overseas, the cost will automatically be what? -- 10-20% more than it should be. Too, restaurants and such that cater to foreigners here in Thailand will also often carve out the 7% VAT as well as a 10% service fee to charge separately (restaurants not specifically catering to foreigners often will not do so), so if using a credit card, those fees are also being financed by the bank back home. And it is not uncommon to see Americans also offer a 10-20% tip on top of these costs, because hey -- Americans. So add the cost of any tip to the amount being financed by the bank back home. If the eatery or whatever then also charges 2-4% for credit card use, well... Things can become quite expensive pretty quickly.

 

Personal preference: I generally only use  a credit card in Thailand for major purchases at larger shops, and/or for hospital expenses, and etc. The credit cards I use here offer an excellent exchange rate as well as no foreign transaction fees, so I always ask to be billed in Thai Baht. Whether I would agree to an additional surcharge would vary depending on circumstance. I would never use a credit card in a restaurant or for paying for small day to day things. Others might. See list of hidden charges above, though perhaps I missed a few.

 

 

[Pib]

1 hour ago, RedQualia said:

 The credit cards I use here offer an excellent exchange rate as well as no foreign transaction fees, so I always ask to be billed in Thai Baht.

The credit cards you use will use the exchange rate of the card logo....that is either the Visa rate, Mastercard rate, etc, unless you accept a DCC tansaction exchange rate offered by the local ATM/merchant/bank.  The DCC will be significantly lower than the card logo rate...usually around 3 to 4% lower.  That lower rate results in 3 to 4% higher profit for the local ATM/merchant/bank and your card account being hit with a 3 to 4% higher amount than if the Visa/Mastercard rate had been used.  

 

Now this is excluding any foreign transaction  fees your "card-issuing" bank may apply.  And when they apply any such fees on the Visa/Mastercard exchange rate it has an effect of lowering the exchange rate.

 

And the more fee-evil card-issuing banks will still apply a foreign transaction fee for a DCC transaction not because they were involved in any way in the exchange rate nor was Visa/Mastercard for a DCC transaction, but simply because it was a foreign transaction in any currency.   

 

Definitely continue being charged in Thai baht as a DCC transaction will pick your pocket for an extra 3 to 4% through banksters magic.

[ableguy]

On 3/26/2017 at 9:34 PM, theguyfromanotherforum said:

 

Where are you located and where do you shop? Frankly, I only use my cards in supermarkets and restaurants inside malls. Never been charged extra.

 

I live in Korat and prior to that hua hin for six years and prior to that Bkk, we do travel a lot never had a charge from Agoda who I use for hotel bookings, stores such as global or home pro do not charge, I have had four different cars whilst living here Ford Honda, Isuzu Toyota, they all asked 3per cent for credit card use, on any repairs or service also many small hotels I have simply walked into also ask 3 per cent, also any small independent traders in markets or based in such as Tesco or big c , always ask three per cent..

[RedQualia]

5 hours ago, Pib said:

The credit cards you use will use the exchange rate of the card logo....that is either the Visa rate, Mastercard rate, etc, unless you accept a DCC tansaction exchange rate offered by the local ATM/merchant/bank.  The DCC will be significantly lower than the card logo rate...usually around 3 to 4% lower.  That lower rate results in 3 to 4% higher profit for the local ATM/merchant/bank and your card account being hit with a 3 to 4% higher amount than if the Visa/Mastercard rate had been used.  

 

Now this is excluding any foreign transaction  fees your "card-issuing" bank may apply.  And when they apply any such fees on the Visa/Mastercard exchange rate it has an effect of lowering the exchange rate.

 

And the more fee-evil card-issuing banks will still apply a foreign transaction fee for a DCC transaction not because they were involved in any way in the exchange rate nor was Visa/Mastercard for a DCC transaction, but simply because it was a foreign transaction in any currency.   

 

Definitely continue being charged in Thai baht as a DCC transaction will pick your pocket for an extra 3 to 4% through banksters magic.

 

Sounds nice in theory. However, one of my banks always lowballs the exchange rate. Significantly lower than the logo rate. The other bank usually provides an ever so slightly better rate than the logo rate. I won't pretend to understand the mechanics of the matter. Only reporting what I've experienced.

[TallGuyJohninBKK]

On 3/21/2017 at 8:50 AM, freebyrd said:

 

When I was a fitness manager in PI, I didn't pass this charge to potential new club members as they would have walked out of the door, some money is better than no money.

 

 That's my bottom line as a consumer also.  If a business won't accept my debit or credit card as payment (and no surcharges or dynamic currency conversion), then they lose me as a customer, period. I'll go somewhere else with my business.

 

BTW, I think it's fair to say that another reason some Thai businesses prefer to take payment in cash is it makes it easier to fudge on their revenue reporting for tax purposes. Just sayin....