The best exchange rate for Thai bahts can be obtained by always paying with a card, as it is by far the most cost-effective option. For carrying some cash, the best choice is to withdraw money from an ATM.
In other words, the best money-saving strategy would be to always pay with a card (as we’ll see later, in 2024, Wise card offers the best exchange rates and lowest fees in the market) and only withdraw the amount of cash we’ll need from an ATM.
This technique to save the maximum amount of money on your vacation might surprise you because if you visit any currency exchange office or bank, you’ll see them advertising “no fees.” One might think it’s logical to exchange bahts for the current exchange rate, right? Well, not quite! Everything comes with a cost, even paying with a card, though they may not explicitly tell you or make it apparent.
Let me share a secret: this website was created by a group of friends who have worked for several years in currency exchange offices, and honestly, changing cash is the worst option by far. To give you an idea of the magnitude of this bad alternative, you should know that most currency exchange operators or bank employees receive discounts on exchanging currencies compared to the exchange rates offered to customers. But even with that advantage, we never exchange cash. At most, depending on the trip, we might take a small amount for certain expenses or just in case it’s necessary to enter the country.
So, it’s clear: always pay with a card and only withdraw the necessary bahts in cash from an ATM. Now let’s see how to minimize the costs in both cases:
What is the best card for foreign payments?
Based on the study we’ve conducted of all the cards available in the market for this year 2024, for making payments in any foreign country, travel cards have lower costs than traditional bank cards. Among travel cards, the one with the lowest costs is the Wise card.
These results are valid not only for payments in international stores in foreign currency (Wise offers the best conditions, other travel cards are about 4 times more expensive on average, and traditional bank cards are about 10 times more expensive on average), but also for withdrawing cash in foreign currencies from ATMs outside your country (Wise has the lowest fees again, other travel cards are about 4 times more expensive on average, and traditional bank cards are about 20 times more expensive on average).
Furthermore, if you want to know precisely the cost differences and functionalities among the different cards you can find in the market in 2024, don’t miss our comparative study at this link. As you’ll see, this extensive study analyzes all types of cards (debit, credit, and prepaid) and all types of providers (banks, fintech companies, financial institutions, etc.).
Is it necessary to bring cards from our country abroad?
As we mentioned before, it’s better to use the Wise card instead of a conventional bank card or other travel cards, as it will save you a significant amount of money when making payments at foreign stores and when withdrawing money from international ATMs by paying the lowest possible commissions.
Therefore, you wouldn’t need to bring any other card initially, but keep in mind that if you’re planning to make payments like renting a car, you’ll need a credit card, as most car rental companies will hold an amount as a deposit and will only accept credit cards.
If you don’t plan on conducting such operations, it’s advisable to leave your main bank cards with higher balances at home and carry an extra debit card for security reasons, with some funds in case of emergencies (imagine that your other card gets damaged or stolen, and you lose your mobile, leaving you with no means of payment).
Keep in mind that in case of theft, you run the risk of fraudulent operations with your cards up to their respective limits. On the other hand, with the Wise card we recommend, your balance will never go negative, so only the deposited amount can be spent.
Additionally, you can instantly block your Wise card from your mobile, whereas with your bank cards, you might have to call your bank to cancel them, running the risk of them not providing service at that time due to holidays or being outside customer service hours.
For all these reasons, when traveling, it’s much better to carry a debit card like the Wise card with the amount of money you’ll need. If you need more, you can always reload it instantly through the mobile app, and if you need to block it due to loss or theft, you can do it right away through the app as well. This way, you’ll have full access to your money at all times, without paying fees for it and minimizing the risk of theft.
As you can see, this card offers numerous functionalities through your mobile phone, so it’s essential to ensure your phone is always fully charged. Keep in mind that plugs are different in many countries. Therefore, it would be a good idea to get a universal plug adapter for traveling, as it will be useful for any future trips you take. In this link, we show you a very affordable universal plug adapter, as well as other essential and necessary products for traveling.
Lastly, it’s important to know that if you plan to carry your credit card to pay for deposits in operations like renting vehicles, it’s advisable to inform your bank beforehand about your international travel plans and the limits you’ll need. Remember that all cards have daily, weekly, and monthly limits, and while traveling, you’ll likely spend more than usual. So, if you have relatively low limits without realizing it, you might reach your limit and find yourself in a difficult situation.
What to do if my card runs out of balance abroad?
If your debit card runs out of balance while you’re abroad, there are simple ways to get money:
- If you have a bank card, you can contact a family member or friend who is a customer of the same bank and ask them to transfer money to your account. Transfers between accounts of the same bank are instant, so once the transfer is completed, your card can use the new balance in your account. Another option would be to make an “immediate transfer” between accounts from different banks, as this is also done instantly.
- If you have a prepaid card like Wise, you can reload it through the App (or someone can do it for you), and you’ll receive the money instantly.
What to do if all my cards get stolen abroad?
If all your cards get stolen while you’re abroad, here are your alternatives to get through the situation:
- Use bahts you’ve withdrawn from an ATM: You can pay with the cash in foreign currency in case you’ve made a withdrawal from an international ATM.
- Exchange your currency in cash: It’s always advisable to carry some cash in your home country’s currency in case of emergencies, as you can exchange it for bahts at exchange establishments if needed.
- Pay with your mobile: If your mobile has NFC technology and your bank offers mobile payment service, you can link your mobile phone to your card. Even if the card is canceled or blocked due to theft, you can continue paying with your mobile without any issues.
- Have someone from your country pay for what you need: If you only need to purchase a plane, train, or boat ticket, any contact you have in your country can pay for it online and send you the mobile boarding pass (or you can download it through the company’s app).
- Receive money through money transfer agencies: In most tourist cities, there are numerous agencies that offer this type of service. Any contact you have can make a transfer from your country so that you receive the money abroad.
- Sell your jewelry at a gold buying store: In most major cities around the world, there are numerous gold buying stores where they will buy any gold jewelry from you without any problem.
- Sell your valuable items at a second-hand store: The most sought-after and easiest-to-sell items would be technological products like mobile phones or laptops, as well as quality clothing and watches.
- Ask for money: The easiest way to get what you need would be to ask compatriots who can trust you. If you need a small amount, the perfect place to ask is near vending machines, as everyone receives change there, and it’s very likely that people will give you something if you ask.
- Contact your Embassy or Consulate: As a last resort, the representatives of your country can provide you with assistance.
Where to find the best cash Thai baht exchange?
As mentioned before, the cheapest way to get cash bahts is by withdrawing money from ATMs.
In any case, if you wanted to exchange cash bahts at a currency exchange office or bank, a margin of less than 5% compared to the official exchange rate would be a good exchange rate. A margin of 5%-10% would be an acceptable exchange rate; a margin of 10%-15% would be a poor exchange rate, and anything beyond 15% would be usury.
You can easily find the official exchange rate of the Thai baht compared to your currency on Google. By subtracting the offered rate from the official rate and dividing the difference by the official rate, you’ll get the percentage of margin they would be applying to you.
Generally, highly transited areas in tourist sites are the worst places to exchange currencies, as they apply higher margins on the exchange rates. Therefore, it’s best to search online for a good exchange establishment rather than going to the first one you see.
In any case, if you were to exchange a small amount of money, it wouldn’t matter much where you exchange it in case of need and urgency, as it would involve assuming a small additional cost in the worst-case scenario.
What amount of cash is sufficient for traveling?
Exchanging cash only serves two purposes:
- It serves as an emergency fund in case your card and mobile get stolen, allowing you to at least manage essential expenses like food, phone calls, transportation to the embassy if you need a duplicate passport, and getting to the airport to leave the country.
- It’s used if you need to make cash payments, such as in some street stores, certain vending machines, and for paying certain services like laundries, phone booths, shopping carts with coin slots, etc.
Depending on the number of days you’ll be staying and your estimated cash expenses, you can calculate more or less what you’ll need, which, in any case, shouldn’t be a large amount.
Is it possible to know if the baht exchange rate will improve or worsen in the future?
Official exchange rates of all currencies function like any financial market, similar to the stock market. While there are analysts and financial gurus who make predictions, just like predictions about stock prices, there is no evidence that anyone can consistently predict future exchange rates.
Generally, forex market rates tend to be quite stable, and within a month, they don’t vary much more than 5%, unless there’s an unexpected economic or political event, such as the unexpected victory of an opposition party with a disruptive economic program.