Save money: ATMs & credit cards
Just recently it happened again.
A hotel staff wanted to convince me, how much more convenient it is to pay the bill in my home currency. Maybe it is more convenient, but on the downside also more expensive. So don’t do it, if you want to save money! After all it’ your money!
ATMs
This is very common in Europe, once happened to me in Spain:
You withdraw money in a foreign currency like the EUR and the ATM asks you, whether you would like to be charged in your own currency (e.g. USD) or in the currency of the country (e.g. EUR) where you are. Always choose the currency of the foreign country as your own bank at home usually gives you the better exchange rate than the local bank at your holiday place.
You will have to wait for a few days until you know how much money you were charged, but it will be cheaper. Usually the exchange rate with this “trick” is one to two percent worse, so on 100 EUR withdrawn you can save 1 to 2 EUR.
Credit Cards
I don’t know how common this is, but in Thailand they try it all the time:
You pay your hotel bill with a credit card (like Mastercard or Visa) and the staff charges you in your local currency (e.g. EUR) instead of the foreign currency (e.g. Thai Baht). You might not even be asked if it’s ok for you. I guess the hotel (or the tailor, or the travel office) gets a commission for each transaction. But you should refuse, as again your own bank at home usually gives you the better exchange rate than the local bank at your holiday place.
You will have to wait for up to six weeks until you know how much money you were charged, but it will be cheaper. Again the exchange rate with this “trick” is one to two percent worse, so on 100 EUR bill value you can save 1 to 2 EUR.
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Wow this one is really surprising me. And thank you for your suggestion.
You said , “But you should refuse, as again your own bank at home usually gives you the better exchange rate than the local bank at your holiday place.” I still do not get the meaning of this.
So what should I do if they charge me in THB but my local currency is IDR?
Hello Tammi,
If you are in Thailand right now, you need to make sure to always be charged in THB and not in IDR.
Then you will have the better exchange rates with your bank at home in Indonesia.
Be aware of TMB Bank, they have very scamy ATM cash mashine, just force me to exchange on a rate so bad that it cost me 20% of the amount I got from the ATM. They don’t show option to cancel, or suggest to do it or not and at the and you get the notorious bill saying something like: “It was your free will to exchange with us, and we gave the option not to do it!” Very cheep way to get 13 Euro from me so now I will not give anymore tipps to anybody in Thailand because of that! Well done Thailand, well done!
Hello Thomas,
I feel sorry for your bad experience.
Just a question: Did you use a credit card like Mastercard or Visa? Because everywhere in this world you will have to pay a lot of fees. You need to use a debit card like Maestro.
And yes, this trick with forcing an exchange rate to you in THB to EUR and then your bank balance will show the withdrawal in EUR is an old trick. I actually had it the first time in Spain over ten years ago with EUR to CHF. So in this case, the Thai banks learned it from the banks in Europe, which of course doesn’t justify it. Just say No and then, magically, they will still allow you the withdrawal in their home currency in most cases.
I wrote an article about this here: https://www.dontworryjusttravel.com/tips/travel-tips/save-money-atms-credit-cards/
hi and thanks . iam heading to Bangkok in 9 days . im traveling with my 2 daughters ( teenagers) and a lady friend . this tip on the atm is fantastic . im not far from the silom citibank . helps lots as all the girls want shopping . again thanks ,, cheers will
Dear Will,
You’re welcome. Glad if I can help. And thank you for your comment.
Charles,many thanks for the interesting tips.As i actually live here now i will follow your site.Great work.
Carl
Dear Carl,
Thanks for the compliments and for stopping by.
Hi Max,
Information concerning ATM withdrawals with credit cards was most useful.
But taking out let’s say 20,000bht to diminish the impact makes you walk with a lot of money in your pocket or hidden in your secret? place. In Canada I never carry more than equivalent of 10,000bht .
I have a Bangkok Bank Best 1stSmart debit card -Visa and their ATM seem not to charge 150bht. I will visit my main branch manager (I have a decent deposit amount there) and and will ask to explain the real charges. Do you wish that I inform you of anything interesting?
Dear Georges,
I hope, you’re talking to the website owner. That would be me, Charles. 🙂
I agree, that carrying lot of money is risky. I have actually thought about outlining this more clearly in one of my articles. I think, one should do it and then go back to the hotel and put most of it into the safe. Everyone needs to decide himself, with what amount one is comfortable to withdraw.
Yes, please inform me. But it is very clear, that the 180/150 Baht charge is only applied to foreign cards, so the information is of limited use to people visiting Thailand as tourists – the target group of these articles – but it is still very interesting to me personally and to those few regular Thailand tourists, that managed to open an account with a tourist visa, which most bank branches won’t allow or still plan to try it.
Thank you for your contribution and best regards
Charles
I was able to open an account with Kasikorn Bank with a tourist visa. I got my bankbook and debit card within a couple of days.
What bankcard were you using at the citibank atm being able to avoid a fee charge by their machine? Do you believe all non citi cards are exempt from an atm fee? Thanks!
Hello Thomas,
I really went into this in great detail in the article about the 150 Baht ATM fee.
Please read it and if you still have questions then, I’m happy to answer them.
Found your site interesting.
Hello Max Anthony,
Thank you. I’m happy you appreciated it!