Travellers Cheques, Cash or ATMs

[Guest]

Thanks guys for your input. I'll bring a mixture of cards, travellers cheques and cash but I think I'll rely on travellers cheques because my bank is cheap in UK but screws you abroad, i.e. £2.50 to use debit card plus 2.5% commission on foreign currency transactions. They're also restricting the amount you can take out abroad for security reasons. I'll use a credit card for hotel bills, again thanks for the warning about copying.

[Road Runner]

Hello DrPhil,

As you appear to be a  UK resident I have only one thng to say to you!

Open a Nationwide Building Society Flex Account!

Your Flexaccount debit card will work in ALL ATM machines in Thailand.
There are NO charges for using the card abroad  (I can personally confirm this in Europe and Thailand) and you get the local excange rate in most countries.
In Thailand this is 2-5 Baht better than the UK!

RR.

[divertwo]

(Snick @ Sep. 20 2007,15:23) Be wary of using your credit card, their have been many instances of cloning (making a copy of your card). I would limit my CC use to top hotels in Bangkok and not use it in stores,restaurants or Pattaya hotels

Good advice as I just was called this week by my VISA card provider telling me my VISA card had been charged with 2, $1000.00 charges this week from Thailand. My last trip to LOS was in May....so someone stole the number I guess. The provider did not honor the charges so I'm not out any $$$....but the card was cancelled and I have to go thru the hassle of getting a new card. Had my card been cancelled while in LOS....I would have had to scramble to get a new one..........or use cash withdrawn with a debit card.

[Dieter]

No problem my CC's copied three times.....
I have some cash must be away from Europe... so cash....

Me love Euros
Dieter

[gart4571]

I use a combination of cash and travelers checks. With the type checking account that I have, I get commission free travelers checks as long as I maintain a minimum balance of one million dollars. JUST Kidding. I think that the minimum balance is $500.00 in order to get commission free travellers checks. I usually get the 1000.00 denomination. I try to use banks in Thailand that will allow you to do your conversion to baht inside and not on the street. After cashing a travellers check, I always put most of it in the hotel safety deposit box and carry only what I expect to spend in one day. I never use my credit card in Thailand since a few years back while I was in Thailand, there was a charge to my card in France. My card company took care of the charge.

[PigDogg]

Your credit card company is making a killing off the money you spend on your foreign vacation, and you might not even know it.

This extra profit is called a "foreign currency-conversion fee," and you could be paying up to 3-percent extra when you make an overseas purchase with a credit card.

One percent of that charge comes from the Visa or MasterCard networks, which charge a 1-percent fee for converting your foreign-currency purchase into American dollars.

On April 1, Visa replaced its 1 percent currency-conversion charge with a 1 percent "transaction fee." MasterCard plans to start charging the same transaction fee starting Oct. 1, replacing its current 1-percent currency-conversion charge.

No matter what you call it, it's a good deal. Changing your money in almost any other manner will probably cost you a lot more.

But many credit card issuers and banks are cashing in by adding up to a 2-percent charge on top of that 1 percent without doing a thing to earn it.

"Banks have been making a profit off their customers for a long time, while providing no service," says Linda Sherry, the editorial director for Consumer Action in Washington. "Visa and MasterCard are doing all the work; it's simply pure profit for banks."

Ed Perkins, syndicated travel columnist and author of "Business Travel When It's Your Money," agrees.

"People who travel to foreign countries are outraged by this charge. It's pure gouging that credit card companies know they can get away with," he says.

Bankrate contacted four credit card issuers -- Bank of America, MBNA, Citibank and Chase -- to get an explanation for the additional charge. All refused to explain the reason for the charges.

Few banks actually list currency-conversion fees on credit card bills. Most banks add the conversion fees into the transaction prices listed on customer bills -- never actually showing customers the rates they charge.

The charge varies from card to card, but major credit card issuers such as Citibank, Bank of America, JP Morgan Chase and MBNA charge 2 percent on overseas purchases. Add that to the 1 percent Visa and MasterCard charge for the actual conversion and you will pay an additional $3 for every $100 you spend.

So that $300 pair of shoes you bought in Milan, Italy, will show up on your statement as $309 because Visa or MasterCard got its 1 percent cut charging you $3, while your credit card added its 2 percent by tacking on $6.

That failure to disclose is starting to change due to recent lawsuits brought by consumers who say that their credit card company failed to adequately disclose currency-conversion fees on their credit card statements. Some credit card companies have now issued statements identifying the currency-conversion fee and how much their cardholders will be charged.

"I think the breakout of the fee could have an impact on the market," Sherry says. "Consumer outcry could cause some banks to lower their fee or do away with it."

But until that happens, shop around for a credit card and ask questions until you're sure your selection doesn't charge a currency-conversion fee on top of the Visa or MasterCard charge.

Consider, for example, Capital One. Not only does the credit card firm not change an additional 2-percent fee, it even absorbs the 1 percent charge from Visa or Mastercard, so the customer pays nothing.

Perkins says that some credit cards are going a step further by charging you a currency-conversion fee on items already listed in U.S. dollars. "You can buy something from your home in the U.S. from a merchant overseas, who has already converted your purchase into U.S. dollars, but some credit card companies will still charge you a conversion fee. It's just ridiculous."

More than meets the eye
Some overseas merchants now offer to convert your bill into your home currency. This is called "dynamic currency conversion" and it means the merchant -- and not your credit card issuer -- is converting the currency.

If you think you are getting a deal because there will be no currency-conversion charge, think again. The merchant is converting your money for you, charging a percentage for the service, and passing along that charge to you through his merchandise.

Perkins warns travelers to be very wary of dynamic-currency conversion. "Right now, it's not a good deal," he says.

"Overseas merchants can gouge you by charging 5 percent or 6 percent to convert your purchase into U.S. dollars. Add the 1-percent Visa and MasterCard charge, plus what your credit issuer charges, and you are taking two hits instead of just keeping your purchase in local currency and taking one hit from your credit card."

Perkins says there have not been any set dynamic-currency-conversion charges, so many merchants are taking advantage of gullible travelers. "Visa and MasterCard are also doing their share of gouging by charging you for something you already paid for, just because they can."

Better ways to pay?
So, what is the best course of action to avoid the charges?

Sherry recommends prepurchasing airline tickets, hotel rooms and rental cars before leaving the United States to avoid the charge.

"I think a lot of consumers get hit hard when they dine out and shop. That part is unavoidable, but most everything else can be purchased before you travel overseas."

Also keep in mind that debit cards are just as handy as credit cards when making purchases overseas, and some of the banks that charge 2-percent conversion fees do not charge for purchases made on a debit card. According to Perkins, even some small banks and credit unions do not charge for conversion fees.

Tips on getting the best deal
Here are some money-saving tips you can use for your overseas vacation.

Look for credit cards that do not have a currency-conversion fee.

Travel with stored-value cards issued by Visa, MasterCard and American Express. These cards have upfront charges but will save you from being charged the conversion fee on each purchase.

Using a bank or debit card is often the best way to go, because many do not charge conversion fees.
Travelers' checks are still popular, but you will be charged a fee (usually around 7 percent) and will still pay on the conversion. However, you can shop around to find a better exchange rate and a lower fee.

Don't convert money from one currency to another more than once. Also, don't exchange money at airports or hotels. They charge the most.

The bottom line
Most experts agree that despite the conversion fees, using plastic abroad is still the cheapest way to make purchases, especially when you consider hefty charges on travelers' checks and money exchanges.

"Exchange rates offered by credit cards are better because exchange rates secured by Visa and MasterCard are based on wholesale rates offered to large banks and corporations rather than the retail rate offered to consumers," says Jessica Iben of Chase Card Services. "Credit cards also provide increased protection on any card purchase since card members are never liable for unauthorized purchases."

Perkins agrees: "Credit cards may not be the best deal they used to be, and we hate to be price-gouged, but paying with plastic is still the smart way to travel overseas."

[moe666]

Dr.Phil. Everyone has a different take on what works for them, one thing to consider is if you want to travel to Burma, Laos, or Cambodia while here. If these location are a possibility then cash will be needed.
To change money there is a travel agency at Suk. 7/1 that has a approved money exchange in the back, I have always gotten better rates here than at the kiosk that abound in the area and they exchange all currencies.

[Guest]

dr phil
marks and sparks only 1% commission on travellers cheques

[Guest]

And commission-free exchange of unused ones.

[Guest]

Also, does the DIG take credit cards?

[Guest]

(DrPhil35 @ Sep. 28 2007,08:10) Also, does the DIG take credit cards?

Yes most hotels in Thailand would take credit cards.

[dmlbl2001]

I use travelers checks. and also use credit cards for some purchases such as airline tickets ect. I find that travelers checks are easy and also help me keep track of my spending as opposed to just hitting the machine all the time. I know just what I have and what I am spending. At least for me an old guy it is easier to keep track of. I also send myslef an email with the check numbers, so if I lose everything I can still access the needed nubers to replace them. I also email myslef a color scan of my passport, and the visa page ect. Dont know if it will make things easier if I lose my passport but just makes me feel better.

[Road Runner]

That's one of the best simple pieces of advice for travellers I have seen in a long time!

RR.

[Guest]

(dmlbl2001 @ Oct. 04 2007,02:15) . I also send myslef an email with the check numbers, so if I lose everything I can still access the needed nubers to replace them.

what a great idea, ill be doing that for my november trip
thanks for that!!
Omg

[thaibound]

just my 2¢ on a *very* useful thread: as mentioned, capital one visa charges no "foreign exchange fee" - a considerable improvement on both my american express and both my bank of america visa and my chase bank visa, all of which charge 3% - which can add up - so i left them home. i only found this out by making *repeated* phone calls. also Discover Card charges no foreign currency exchange fees AND throws in a 1%+ cashback -- but who the fuck in the LOS takes a "Discover Card"? nobody i've found! (is it just a USA thing maybe?)
for 90% of my expenses i use my BofA debit card at the ubiquitous ATM's. in Hong Kong i found there will be some 'added fees' but otherwise i've yet to find anything more than a 1% transaction fee at any atm i've used thus far all over the LOS and i suppose if i *really* fought it i might get that reduced, but it's so damn convenient, i can't complain.
with the thai exchange rate so drastically worse overseas than it is here i hope i'm smartly receiving the *much* better in-country rate rather than the overseas exchange rate by using my debit card at local atm's throughout thailand, but truthfully, i won't know for sure til i get home and do the math.
and finally, when you leave thailand take a few thousand baht with you -- and then keep it with your passport so you remember to bring it back with you! . it'll almost certainly be worth more when you return (especially versus the fucked up usd!) and it'll be handy to have in your pocket to cover taxis, tips, etc until you get to an ATM in-country.