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Travel cards have penetrated the cards game in Thailand not very long ago. The WHY of Travel cards is to enhance the consumers experience while dealing with foreign currencies, mainly while travelling.
Travel card is a reloadable prepaid card, works similar to debit card. What makes Travel cards being outstanding is the currency exchange rates offer.
Here is the comparison of USD to THB on 24 April 2020, the currency exchange rate of Kasikorn Bank journey debit card is advertised as 32.14 while regular cards is 32.40.
If compared to Superrich, which always offers generous rate in Thailand, it is 32.37 on 24 April 2020.
In optimal situation, the first choice would be Kasikorn Bank journey debit card. Having physical cash exchange would placed second and regular cards will be the last choice.
The first Travel Card in Thailand is introduced by Krungthai Bank in year 2018, namely "Krungthai Travel Card". Over the years, different banks had joined the game with the same approach but different benefits.
In today's article, we will check out different travel cards in Thailand's market, whom will be benefitted from travel cards and conclude if it is worth it comparing to regular debit card and credit cards.
Let's start with the first in history.
A. Krungthai Travel Card
When they said "first is not always the best", it might be true.
An App is required to "buy" and "sell" different currencies.It works exactly the same as money exchange at any booth around the world, but in a more convenient and safe way.
Benefits:
- Exchange up to 18 currencies. (AUD, CAD, CHF, DKK, EUR, GBP, HKD, INR, JPY, KRW, MYR, NOK, NZD, RUB, SEK, SGD, TWD and USD)
- No annual fee. (valid for 2 years after card is issued)
- No additional fee when spending on EDC Machine.
Fees:
- Entry fee of 200 THB
- Foreign ATMs withdrawal fee for approximately 98 THB per time.
- Replacement fee of 200 THB
Disadvantages:
- Could not be used in Thailand or any transactions on THB.
While Krungthai Bank being the pioneer of the game of travel cards, there should be a lot to play with after testing the market.
However, the next and only product Krungthai Bank introduced is the Unionpay version of it.
The main difference is it supports currency of CNY.
Meanwhile, it has a slightly lower entry fee of 150 THB, but an annual fee of 350 THB. In my opinion, this might not be a great move.
Check out the latest exchange rate offer by Krungthai by clicking the [direct link].
B. TMB ALL FREE
TMB Bank getting into the travel card league a year after Krungthai Bank.
The flow of currency exchange is the same as Krungthai does.
Benefits:
- Exchange up to 155 different currencies.
- 0% currency mark up (No 2.5%FX Charge)
- Free online shopping protection insurance
- Free accident protection insurance
- No ATM fee in Thailand
- Could be used in THB transactions
- Free card reissue fee
Fees:
- Entry Fee of 350 THB
- Overseas withdrawal fee of 75 THB per time
- Annual Fee of 250 THB*
*The annual fee could be waive by hitting any requirements:
Superior/Wealth/Private Banking customers are exempted from annual fee.
Accumulated spending via TMB ALL FREE debit card or TMB WAVE at least THB 15,000 throughout the year, based on one calendar year.
Any SSF or RMF purchase via TMB throughout the year totaling at least THB 50,000, based on one calendar year.
Accumulated spending via TMB credit card at least THB 50,000 per year, based on one calendar year. (except cash withdrawal)
Customers that has never issued or not holding TMB ALL FREE debit card in the last 12 months.
TMB Payroll customers that are eligible for TMB terms and conditions.
Check out the latest exchange rate offer by TMB by clicking the [direct link].
C. PLANET SCB
SCB introduced their version of travel card in August of year 2019, Planet SCB.
Benefits:
- Exchange up to 13 currencies (USD, EUR, GBP, JPY, AUD, CHF, SGD, HKD, NZD, CAD, CNY, KRW and TWD)
- No 2.5% FX Charge
- No annual fee (valid for 3 years after card is issued)
- Free Travel Insurance up to 10 days
- 20% discount at True Leasing (Limo rental with driver).
From 1 February 2020 to 31 December 2020.
- Up to 8% discount for booking on Agoda.
From 1 January 2020 to 31 December 2020. [Terms and Condition]
Fees:
- Entry Fee of 200 THB
- Overseas withdrawal fee of 100 THB per time (withdrawal fee is waived between 17 August to 30 September 2020)
- Card reissue fee of 200 THB
Disadvantages:
- Could not used for money withdrawal from ATMs in Thailand.
SCB does not display the rates online, could only check through their App (SCB Easy App)
D. Kasikorn Journey
Kasikorn Bank enters the travel card game in October 2019.
Late in the market, but it comes with youthful designs.
It is a debit card, with special currency exchange rate. Thus, not require "buying" currency in advance as other travel cards.
Benefits:
- Exchange up to 28 currencies with special rates.
- No 2.5% FX Charge
- Free travel SIM card, valued 399 THB (from 1 January 2020 to 15 May 2020)
- Free access to Miracle Lounge at Don Meung and Suvarnabumi airports for once per calendar year
- Free travel insurance up to 10 days (from 1 January 2020 to 31 December 2020)
- 100 THB discount on Grab for airport transfers (2 privileges per user and valid from 1 January 2020 to 31 May 2020)
- Special rates for car rental at Thai Rent A Car
- Free Domestic travel insurance up to 7 days
- Privileges from Reward Plus Debit Card: Discount on movie ticket, Grab rides and grab food, Ari football/ running stores.
- 5% discount on Agoda
- 8% discount on Expedia
Fees:
- Entry fee of 700 THB
- Annual fee of 550 THB (waived for first year)
- Replacement fee of 550 THB
- Foreign countries ATMs withdrawal fee of 100 THB
Check out the latest exchange rate offer by TMB by clicking the [direct link].
E. Kasikorn youTrip
A month later in 2019 (November), Kasikorn Bank introduced a prepaid version of travel card, which required an App to be downloaded.
Benefits:
- Exchange money in advance with special rates up to 9 currencies. (JPY, HKD, SGD, AUD, EUR, GBP, CHF, USD, CAD)
- No 2.5% FX Charge
- Offer better rates when spending in 150+ currencies.
Fees:
- Entry fee of 100 THB (waived for applicants from 5 November 2019 to 31 October 2020)
- Annual fee of 200 THB (waived for applicants from 5 November 2019 to 31 October 2020)
- Card is valid for 3 years
- Replacement fee of 100 THB
- Foreign countries ATMs withdrawal fee of 100 THB
Kasikorn does not display the rates online, could only check through their App (YouTrip)
Here are all the travel cards in Thailand market right now. Most of them are prepaid cards. The biggest concern of prepaid cards is to transfer the leftover balance back to saving account.
As travellers, the biggest headache we have after most vacation is the leftover coins and banknotes. The money exchange booths typically not accepting them, they will probably end up somewhere in our collections or to be used in next trip.
Prepaid cards do solve this problem, but not completely. After topping up money to travel cards, most of the banks do not allow transfer back to saving account. It ends up sitting in the card till next trip. Even if transfer is allowed, the rates of "buying" from bank is probably not ideal.
Hence, it is important to do some calculation before "buying" specific currencies.
The question is, who suits with travel cards?
People who are typically travelling overseas, of course. The currency exchange rates and waived of FX charge play important roles in positioning of Travel cards in the market. Students whom are planning to study overseas are beneficials of this product too. The ATM withdrawal fee is more likely lower than wire transfer fees to any banks overseas.
Travel card vs Debit Card
The most identical product compared to prepaid card is debit card. A debit card is more recommendable if the users are staying in home country longer than overseas. As from the product descriptions, some travel cards do not support money withdrawal from local ATMs and transactions in THB. Those are ridiculous in my opinion.
Moreover, debit cards typically have no or lower annual fees. With the difference of 0.30 THB per USD from Kasikorn Journey card, it is indeed not "worth it" to pay for an annual fee of 550 THB, for instance. Unless, there is a big spending or travelling often.
Travel card vs Credit Card
To compare with credit cards, travel cards would have won the battle in currency exchange rate. However, the values of point or cash back earned by credit cards typically could surpass it. More importantly, most credit cards have no annual fee.
Credit cards are typically more acceptable worldwide. Although both card types come with Visa or Mastercard, but debit card or prepaid card might not be accepted by certain merchants. For example, rental car companies and hotels will require a specific amount of deposit by Credit Cards only.
Conclusion
As conclusion, travel card is indeed an amazing product. It enhances the way we travel. With competition between banks, we could only expect more benefits will be introduced. We, as users will be the biggest beneficial by then.
However, travel card is still new in the market. It will be more interesting if the issuers provide "0" foreign ATMs withdrawal fee. With this feature, the market share in this market will be enlarged significantly. For example, In the States, Charles Schwab bank offers worldwide no ATMs fee for its debit card**.
As from user perspective, the reward points multipliers provided by credit cards when having foreign currency transactions is far more attractive than the small difference of currency exchange. The only reason we would use a debit card when travelling is when the merchants accept cash only.
My personal recommendation is, to get a debit card before travel card. Choose a travel card that have more flexibility in withdrawals and transactions. Annual fee will be next and the last putting into considerations would be the currency exchange rates offered by different banks.
Source:**https://international.schwab.com/public/international/accounts_products/accounts/brokerage_account
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