Question about Exchange Rates

[Guest]

I made 2 identical sized currency withdrawals from the same ATM in another SE Asian country, on the same day one after the other:

 

Halifax Clarity Credit Card Sterling Cost = £473.36

Nationwide Current Account Sterling Cost = £489.49

 

So the Nationwide withdrawal cost £16.13 extra.

 

In theory, I could be charged 1% interest a month on the Halifax credit card withdrawal, but later the same day I made an online payment to the credit card account & the interest charge on the statement is zero.

 

Conclusion:  Good old capitalist banks provide a fine low cost service to customers, unlike the price gouging from the Nationwide Building Society (supposedly run for the benefit of members, but not in the real world).

 

FYI:   It's 2 withdrawals as UK banks have a rather backward £500 a day limit.

[steveboy]

I guess you don't off long time, right?

 

LOL!, that's right, you have special situations as customer of Tawan boys.

[vinapu]

LOL!, that's right, you have special situations as customer of Tawan boys.

http://www.gaythailand.com/forums/topic/10699-manage-ignore-preferences-a-misnomer/page-2?do=findComment&comment=102456

[kokopelli]

Just another way to screw you out of your money. For example, if you choose the DCC at time of ATM transaction you will receive 35 Baht/US Dollar but if you don't use the DCC rate you will receive 36 Baht/USD.

It applies to all currencies. Just a scare tactic to screw people out of their money.

[Up2u]

Just another way to screw you out of your money. For example, if you choose the DCC at time of ATM transaction you will receive 35 Baht/US Dollar but if you don't use the DCC rate you will receive 36 Baht/USD.It applies to all currencies. Just a scare tactic to screw people out of their money.

You've got the rates reversed and the differences are greater than that.

[vinapu]

Could somebody explain in layman terms what is 'DCC' and how does it work?

 

I am confused.

your credit card will be charged in your original currency according to the rate Thai bank is using instead of in Thai baht ( in case of Thailand ) and then converted to your local currency using rate of  your bank.

 

In short,  on your card statemnet you want see charge in THB  and rate of conversion instead of charge in your currency only  

[kokopelli]

You've got the rates reversed and the differences are greater than that.

Are you saying that someone should accept the DDC rate? If so they would receive less money than if they declined the DCC. The rates I quote were just examples, not meant to exact rates.

[Up2u]

You've got the rates reversed and the differences are greater than that.

kokopelli, I misread this, you are right.

A friend used his foreign (USA) atm card at a TMB last night and was asked if he would like the transaction in his home currency. The prompt was going to give a rate of slightly higher than 34. He declined the offer and received the VISA rate which is quite good.

 

I used my cc card here at a hospital recently and told the cashier Thai baht. The receipt showed an exchange rate of 28.99 and the exchange rate should have been around 35.5. Told her USD should not appear on my receipt and do it again right.

Went home checked my account online and everything was done right. The DCC scam is a big money maker for merchants and banks. Beware.