Krungthai bank - Beware!!!

[ptcarter]

Last night, Saturday night, July 1 around 2000, I used my U.S. ATM card to pull money from a Krungthai ATM (don't have an account with them)  at an MRT station.  The bank wanted the exchange rate (dollar to baht) to be - and provided me a notification - of 32.35!!  I was skeptical the dollar had fallen that low and admitting I used bad judgment, I pulled 10,000 baht from the ATM and went online later to my bank, and sure enough that's what they charged me.

 

This morning the Bkk bank Site Bill is 33.74,  and the Krungthai Bank buying rate is 33.53 (buying and selling are the only two stats I see posted) so for some reason Krunthai bank (arbitrarily or by design?)  decided to gouge an extra baht per dollar from me.  I have used this specific ATM for awhile and never experienced this gouging, and in fact in the past almost-three years living in Bkk have typically used Krungthai bank without problems.  I don't have an explanation for this, but wanted to post my experience for the broader community.  Is there something I am missing here?

[johng]

When it asked about the exchange rate you should have said no...because that is called "dynamic currency conversion" or DDC just another excuse to fleece more money by giving a bad exchange rate.

[The Fat Controller]

It would have been the same with any bank, they offer DCC at a rate which is very favourable to them.

 

Always say "NO" and let your home bank do the conversion.

 

Any easy and costly mistake to make.

[Pib]

You probably accepted a DCC transaction (you must accept at least half the blame) but I seriously doubt you saw the words Dynamic Currency Conversion (DCC) words on the screen that showed the exchange rate.   Some other vague, warm & fuzzy words are usually used to confuse the customer.   DCC ATM transactions are not limited to Thailand; happens in many countries.   See this post which talks a recent similar event for a person using a Krungsri ATM.

 

 

[KhunBENQ]

19 minutes ago, Pib said:

 See this post which talks a recent similar event for a person using a Krungsri ATM.

Just that this post here is very clear.

An exchange rate was shown at the Krungsri ATM.

100% DCC. Always decline. Should that not be possible then cancel.

 

The other thread is less than clear.

Poster insists on not having seen a choice/exchange rate and still insists on "something wrong".

 

[KhunBENQ]

Also here we have numbers.

The rate shown at the ATM was 32.35.

VISA rate of yesterday (as an example) was 33.75

 

That is a loss of more than 4% from the rate.

 

Good cash exchange rates are in the range of 33.7 to 33.8.

 

When using DCC there is likely no ATM fee and no fee by the home country bank (CC)? Is that correct?

 

Be surprised if you do the math for a (small) 10'000 Baht transaction (assuming 220 Baht ATM fee and a 2% fee by the CC issuing bank)

[Pib]

Unfortunately, when folks get a significantly lower exchange rate than expected the don't realize they unknowingly accepted a DCC transaction (which can be usually be easily spotted like an exchange rate being shown on the ATM screen or purchase receipt for signature) and/or don't know their "card-issuing" bank applies a foreign transaction fee of X-percent.   Usually DCC transactions are in the 2.75% to 4% lower ballpark and foreign transaction fees in the 1% to 3% lower ballpark.

 

And many also think an ATM transaction or Point of Service purchase exchange rate is tied to some Forex rate like xe.com or a local bank rate.  But no, assuming the person does not accept a DCC transaction the exchange rate given is the Visa/Mastercard/UnionPay (i.e., card network) exchange rate available at their websites "minus any foreign transaction fee the card-issuing bank might apply."

 

When above occurs many folks blame the wrong organization for the crappy exchange rate....like maybe when a card has a foreign transaction fee of 3% but the card holder doesn't know that...the card holder will all too often blame the ATM or merchant for the lower exchange rate when in fact it was his home country's card-issuing bank that applied the fee.