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

[TallGuyJohninBKK]

11 minutes ago, RedQualia said:

 

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.

When you use a foreign debit or credit card for purchases in Thailand, being VISA or MC, as a general rule, the Thai banks are NOT the ones setting the exchange rates for those transactions. The exchange rates generally used are those set by VISA or MC for international transactions, and both cartels post their exchange rates daily for all currencies on their websites.

 

What does vary, however, is people's HOME COUNTRY banks often have varying fees THEY charge for foreign currency transactions, and those can be anywhere from 0 to up to 5% or so, depending on the individual bank. So it pays to pay attention to what bank cards you choose to use when you're using them outside the country where the card was issued.

 

[siam2007]

14 hours ago, TallGuyJohninBKK said:

When you use a foreign debit or credit card for purchases in Thailand, being VISA or MC, as a general rule, the Thai banks are NOT the ones setting the exchange rates for those transactions. The exchange rates generally used are those set by VISA or MC for international transactions, and both cartels post their exchange rates daily for all currencies on their websites.

 

What does vary, however, is people's HOME COUNTRY banks often have varying fees THEY charge for foreign currency transactions, and those can be anywhere from 0 to up to 5% or so, depending on the individual bank. So it pays to pay attention to what bank cards you choose to use when you're using them outside the country where the card was issued.

 

 

 

But WHAT the Thai banks do is to offer the extortionate "conversion rate" in case you want to pay in your own currency. The cashier staff at POS is actually required to ask you but in most cases they just try to make you pay in your home currency which means another 3-7% "surcharge" on currency conversion. Even hospitals (Bumrungrad, Bangkok Hospital) try this

[Pib]

15 hours ago, RedQualia said:

 

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.

Your banks are using the Visa/Mastercard exchange rate.   The difference in rates you see hitting your accounts assuming both are the same logo card and transactions done at the same time is  purely the difference in the foreign transaction fee each bank is charging which effectively lowers the exchange rate.  And when dealing with credit cards which takes several business days to settle/post, the exchange rate on the posting date will be different than the actual day of transaction.   Debt card transaction usually post same day of actual transaction.

[Pib]

16 hours ago, siam2007 said:

 

 

But WHAT the Thai banks do is to offer the extortionate "conversion rate" in case you want to pay in your own currency. The cashier staff at POS is actually required to ask you but in most cases they just try to make you pay in your home currency which means another 3-7% "surcharge" on currency conversion. Even hospitals (Bumrungrad, Bangkok Hospital) try this

Capital One has a nice webpage talking DCC rate usage and possible fees...to include you card-issuing bank still possibly hitting you with their own foreign transaction fee even though the DCC transaction has already done the conversion to your home currency.  

 

Some of the more fee-evil card-issuing banks/companies will still charge the foreign transaction even though Visa/Mastercard nor the bank/company was involved in the currency conversion; the bank/company will still charge a foreign currency fee simply because it was a foreign transaction in any currency.  Know your card-issuing bank's policy on this....it varies from bank to bank.

 

DCC bad (expensive) for the customer; DCC good for the merchant/his local transaction processing bank (more profit for them at your expense).

 

Going Abroad: Foreign Transaction Fees and Dynamic Currency Conversion Fees

Going abroad: Foreign transaction fees and dynamic currency conversion fees.

 

Going abroad: Foreign transaction fees and dynamic currency conversion fees.

 

Going abroad: Foreign transaction fees and dynamic currency conversion fees.