About to visit and asking ATM question

[Guest]

Probably the worst option is to try and exchange for baht anywhere outside of Thailand. I have looked at the exchange rate offered by kiosks at USA departure airports. Unbelievably bad.

The exchange rates at UK airports are extraordinarily bad as well, although if you take the trouble to reserve in advance, well the same kiosk offers a quite attractive rate.  I don't use it for baht, but the service has been useful for some other trips.

[Bob]

As anonone mentioned, it's not wise to exchange your home currency for Thai baht anywhere outside of Thailand.  That includes when you wire (SWIFT or whatever) funds to your Thai account (make sure you transfer in your home currency and not Thai baht or you'll normally lose a small chunk on the conversion that happens in your home country).

 

I've had a Schwab account forever but have never used their ATM card (I actually have never used an ATM card in Thailand other than once in 2000 just to see if my bank's card would work here).  I recognize that Schwab refunds the ATM fees as many posters have mentioned that over the years; however, just out of curiosity, does anybody know what conversion rate Schwab uses (meaning, how much lower is it than what the Thai banks are giving on the conversion day)?  I'm guessing that they're making a little money off the deal somehow.

[Guest shamahan]

   I'm guessing that they're making a little money off the deal somehow.

You are wrong about that (Why I am not surprised?). The exchange rate is determined by network which is actually perform the transaction (if transaction made in local currency). In case of CS debit card it will be most frequently Visa network. While exchange rate provided by Visa is not ideal, it is close to what a retail customer can hope for. CS does not add any fee to whatever exchange rate provided by a network. Some other brokerages offer checking accounts with ATM reimbursements but they also frequently add foreign fees. E.g. Fidelity will charge 1 percent foreign fees (but still reimburse ATM fees worldwide). I never compared telegraphic transfer  exchange rates of Thai banks (and these are the best rates among posted) with Visa exchange rates (Up to you may know that) but to get these exchange rates one needs (in most cases) actually to make a telegraphic transfer (and hence pay your local bank fees, correspondence bank fees and Thai bank on the receiving end fees).

[Bob]

You talk as if what you refer to as the "network rate" is the same baht/dollar rate that Thai banks are giving at the same time.  If that's what you're trying to say, I believe you're wrong.  And I'm not talking about any fees.....just the conversion rate.

 

As I asked before, does anyone actually know the difference? It may not be huge but I'm just curious as to what it happens to be.

 

I'd note that I can't calculate it as I don't use ATM cards here.  From what I've read (a lot of internet articles about the subject), credit cards offer the best exchange rates and ATM cards provide the second best exchange rates.  Money exchange offices supposedly provide the worst conversion rates.

[kokopelli]

 

As I asked before, does anyone actually know the difference? It may not be huge but I'm just curious as to what it happens to be.

 

 

From my experience using a USA bank ATM card in Thailand, the exchange rates is exactly the same as published in websites such as:

 

http://www.x-rates.com/graph/?from=USD&to=THB&amount=1

 

No difference.

[Guest]

Mastercard & Visa generally publish their exchange rates on websites, which you can of course compare with XE.com.

The loss on that part is negligible.

 

Where you lose out is the Thai ATM fee and the 2.75~3% that the average UK bank charges.  That's a very big loss. Withdraw 15,000 baht, pay 200 to the ATM and say 2.75% to your bank & you have lost 4.1%. 

To compensate for that kind of loss is the equivalent of perhaps working 1.2~2 years longer.

 

I would rather take good old paper cash, lose 0.5% or whatever it is at Superich and pay that into a Thai Bank account.  Then the 12 baht ATM fee (or whatever it is).  This might be the behaviour of a dinosaur, but dinosaurs don't pay 4% to get their cash.

 

I would like to calculate the losses on cash right now, but currently, Superrich Orange website shows buy 51.1 & sell 51.35, with XE-mid market as 50.85.  Which looks too good to be true.

[vinapu]

  This might be the behaviour of a dinosaur, but dinosaurs don't pay 4% to get their cash.

 

 

you not alone.

 

for both fun and home use statistic purpose on my every foreign trip, not only Thailand ones,   I use and compare 4 following methods of obtain local cash:

 

1. exchange USD cash purchased at home using domestic currency

2. exchange my domestic cash

3. take cash withdrawal from my bank account

4. take cash advance from my credit card not issued by the bank I have account with

 

 

I gathered quite a sample over the years and while it varies depending of country and surprisingly perhaps,  year of travel , I must say in 12  Thailand trips  list above  is in order of final advantage after accounting all fees, difference in exchange rates etc.

 

While differences are not very big trend is clear for me, 11 out of 12 USD cash proved most advantageous beaten  only once by my domestic currency  cash.

Plastic was always 3 and 4 th so I gladly remain dinosaur using plastic only if I bust my budget , again happened  11 times out of 12 with only 1 st trip within originally planned monetary frame . 

 

I don't want to inflame discussion, differences weren't that big and perhaps not worth of much a trouble to average 1-2 weeks vacationer but still worth trouble for me. 

[Up2u]

You talk as if what you refer to as the "network rate" is the same baht/dollar rate that Thai banks are giving at the same time. If that's what you're trying to say, I believe you're wrong. And I'm not talking about any fees.....just the conversion rate.

 

As I asked before, does anyone actually know the difference? It may not be huge but I'm just curious as to what it happens to be.

 

You misunderstood. Use your CS ATM card and you get the VISA exchange rate (the network rate). This rate is better than what the Thai bank will charge for a cash exchange or wiring cash. VISA publishes its rates on the Internet and I know beforehand what my charge will be. Visa/MC give the best rates, followed by TT and then cash. Visa is slightly better than MC but both mirror XE.

 

I'd note that I can't calculate it as I don't use ATM cards here. From what I've read (a lot of internet articles about the subject), credit cards offer the best exchange rates and ATM cards provide the second best exchange rates. Money exchange offices supposedly provide the worst conversion rates.

When I use my Mastercard cc or a Mastercard ATM card I get the same the same exchange rate. All my cards incur zero foreign transaction fees although CS is the only one that reimburses the Thai bank charge (150-200 baht). MasterCard also publishes its exchange rates which I check.

 

In comparing exchange rates, the transaction time makes a difference as American branded ATM/cc's will be using an Eastern Time Zone clock.

[kokopelli]

 

 

I would rather take good old paper cash, lose 0.5% or whatever it is at Superich and pay that into a Thai Bank account.  T

 

.

I know you didn't mean old paper cash literally but when bringing cash best to bring new bills rather than old/used bills. The older bills may not be accepted and can be rejected  by the scanning machines as counterfeit.

[LAguy]

You guys are the best.... I am the proud new owner of a Charles Schwab account.... As long as they send me a debit card, I'll be good to go.... (Oh, and as long as I remember to put money in it that is!)

[Guest]

You guys are the best.... I am the proud new owner of a Charles Schwab account.... As long as they send me a debit card, I'll be good to go.... (Oh, and as long as I remember to put money in it that is!)

Just remember, with the high ATM fee, large and infrequent withdrawals is the way to go.

[Up2u]

Just remember, with the high ATM fee, large and infrequent withdrawals is the way to go.

I agree, even though CS reimburses all fees I don't abuse the privilege and I find larger withdrawals more convenient. CS is cooperative in increasing your daily withdrawal limit when traveling too. I noticed Krungsri has a 30000 baht option on their ATM's.

[Guest shamahan]

Bringing a lot of cash carries a lot of various risks. E.g. I read in Thai newspapers about two different accidents (both in Phuket)

when two foreigners have been accused in exchanging faked money. Interestingly enough in both cases they were arrested and put in jail not during the transaction but much later (which,of course, raises some  legitimate questions). Besides, keeping cash in hotel safes may or may not be safe.

  Various nonbank companies offer money transfer services but I do not know a good service for transfer from US to Thailand.

People who need to transfer large sums of money (e.g. for purchasing condo) may consider to negotiate an exchange rate with receiving bank. Only really big banks are involved in currency trading (e.g. Citibank, HSBC) and it is a shame that they provide lousy exchange rates on their internal networks. In US one brokerage "Interactive brokers" has proprietory currency trading platform and provides excellent exchange rates for retail customers. Unfortunately, this particular broker does not offer checking accounts.

I (as many expats) use Bangkok Bank channel to transfer money to Thailand (to US Dollar account) but this channel has its own drawbacks. In any case, for frequent visitors it is worthwhile to open account in Thai bank. There is a push by current Thai administration to digitize various retail transactions and having such account may be helpful anyway.

[vinapu]

There is a push by current Thai administration to digitize various retail transactions and having such account may be helpful anyway.

one can only hope that they will not try to digitize transaction between  bar boys / girls and their admirers 

[steveboy]

one can only hope that they will not try to digitize transaction between  bar boys / girls and their admirers 

 

With the increase in security and convenience,  you may see in the future the bar boys carrying a credit card reader with a link to have the transaction approved.  Maybe they can add the tip automatically as a percent of the transaction, and you just sign the paper slip?  They may even could find discrete names to appear in your statements. 

 

What an ideal solution for those who are concerned about the safety of carrying cash  

[paulsf]

Hot Male accepts credit cards.

[vinapu]

You guys are the best..

we know already

[Guest cdnmatt]

I vaguely remember there are ATMs that dispense up to 30 kTHB.

 

It's getting more common from my experience.  I know for sure TMB and Bangkok Bank allow 30,000 withdrawals, or at least the ATMs I frequent do.  If I remember correctly, Siam and K-Bank are still at a 20,000 limit.

 

Due to the withdrawal fees, I only take out 30,000 at a time.  I get dinged 200 baht from the Thai bank, plus another $5 from my Canadian bank (~150 baht).

[ggobkk]

I started this topic a week or so before I was going to Bangkok.  I returned home this morning.  I brought some cash but mainly used the TMB ATM near the Tarntawan.  I took out 20,000 thb so the bank charge of 200 thb was equal to 1%.  As my credit union doesn't add any other transaction fees that was what I paid.  I checked this by looking at what was taken from my account at home.  I did a $100 test at an exchange near to Soi Twilight.  TMB was marginally better...if I was paying a bank card rate + TMB charge, then the exchange would have been much better.

[kokopelli]

Thanks for the feedback ggobkk; oftentimes we never hear again from some posters as to their experiences.