Quote:
Originally Posted by pay99
just to share if i need cash like 1-2k sgd cash...most of the time i ask the ktv to use my card. they can give you cash but at 5%...but i think is still better than use atm......
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Borrowing cash at 5% would be better than using ATM??
WRONG.
The important difference is between CREDIT cards and DEBIT cards.
With CREDIT (e.g., VISA or MASTERCARD), the issuer basically advances money to you, and for that you are charged:
- 4% (applied by the VISA or MASTERCARD circuit);
- about 1.2%-1.5% on the inter-bank official exchange rate (the one you see on Yahoo or XE), applied by the VISA or MASTERCARD circuit.
With DEBIT (e.g., MAESTRO, CIRRUS), that is plain ATM using your normal bank ATM card, you are charged:
- say 3$ fixed fee (the exact amount depends on the bank), in whatever foreign country you are;
- about 1.2%-1.5% on the inter-bank official exchange rate (the one you see on Yahoo or XE), applied by the MAESTRO circuit.
In other words, in most situations and in most countries, it is largely more convenient to withdraw local currency from an ATM (DEBIT card), rather than exchanging your home currency to local at an exchange office or bank. At best, a bank will charge 2% on the official exchange rate. Exchange offices at airports may charge even 20% (yes).
Please note: when you enter a multi-function card (credit and debit) in an ATM, you SHOULD be able to select whether you want to use the credit or debit function (the bank might hide that, but don't be fooled).
There are exceptions though. One most notable exception is in BATAM when you want to exchange USD or SGD to IDR (the same may hold also for other currencies, but I never investigated).
The golden rule is always to AVOID using the credit function. The 4% fee is really outrageous.
In Batam, exchange offices are probably involved in local currency trading (so to speak), so they offer very competitive rates even compared to ATM (debit card).
I am not expert about SGD/IDR exchange, but with USD I was able to get rates (by hard negotiation and offering new 100$ notes) which were virtually the same as the XE official rate, that is even saving most of the 1.2%-1.5% applied by the MAESTRO circuit (such a favorable rate cannot be achieved in any bank or ATM).