evop

People may be interested in this forum on Reddit (I want Out - focused on those that want to go to another country)

http://www.reddit.com/r/IWantOut

There is a recent tread on credit cards and ATMs. This thread may be mostly for those in the USA so far. Two good options they say are Schwab and Fidelity (for getting no currency surcharges - and one or both refund ATM fees).

http://www.reddit.com/r/telecommutin...unds_atm_fees/

ajw

I think I must be missing the point - we just got a local bank account and local credit cards. My husbands employer is also happy to pay a stipulated amount of salary into our Aussie account each month.

bakedbean

As Ajw said, we just got credit card from local bank CIMB. No problemo.

evop

Yeah for Malaysia the local bank works fine. If you travel a bunch outside (Cambodia, Thailand, Indonesia, Japan, China, Australia...) then a card that doesn't have foreign currency charges is nice. I am not sure if the Malaysian cards just don't have those fees normally?

bakedbean

Not with you curious. i am using it outside malaysia

ajw

Maybank doesnt charge us anything extra when we make purchases outside Malaysia. Unlike my Aussie bank who charges thru the nose!

evop

Some banks charge extra fees (1, 2 even 3%) if the currency is different from that of your account.

<snip - Link removed>

A couple banks don't charge the extra fees (I am not sure what the Malaysian banks typically do). Even the banks that don't, give you an exchange rate that lets them pocket some nice extra cash (maybe 1.5% or so they get to take) - as can those that also charge extra fees. So they are already making a bunch, on top of the fees they charge to the shops.

The extra charge for a foreign currency is normally not separated out as a charge (so unless you pay very close attention you won't notice) - if your purchases just include an extra 2% going to into the pocket of your credit card issuer most people never notice. Those banks charging extra fees are not usually be up-front and honest about it; they will hide the fees in fine print buried with pages of other fine print hoping people won't notice.

Normally those not charging fee (that competitors do charge) will make it obvious they are not charging you - good marketing on their part.

ajw

So presumably the US providers you mentioned above would also tie up their 'charges' in their exchange rate, if not separating them out on a statement?

evop

My very limited experience is those that don't charge fees are actually likely to give a better rate of exchange. Basically it seems like a few banks try to win customers by treating customers well. And then the vast majority (in the USA, Europe, Australia) try to rip off customers anytime they can get away with it.

In the USA they also can "discriminate" (in the economic not political sense). So, for example, Capital One has a very good card for international travelers. It is one people recommend a lot. I think though, if you have most Capital One cards (they offer tons of different options) and travel you are going to be taken for all they can get away with.

Essentially they are segmenting the market into those they can rip off (when they travel) and then doing so. Then instead of just allowing some other bank to take all the customers that pay attention they offer a card that provides value to those that pay attention.

I am not familiar enough with the Malaysian banks to know what strategies they engage in.

Sadly, in the USA, you basically have to treat your bank as a untrustworthy scoundrel that will dip into your pocket anytime you let your guard down for a minute. It really is annoying how constantly they seek to extract cash from customers that don't pay close attention to block the continuous, and new, schemes the banks try to take their customers money.

evop

Oh, I mis-understood your question. Yes, I think you have it right.

Basically you charge a 310 MYR and they just put a charge for $102 on your account.

They don't say 300 MYR (market rate is 3.18 and we gave you 3.10). And we charged you 2.0% on top of that. So 310 = $100 (at the rate we used) + $2 to us for fees = $102. They could say $97.5 (at market exchange rate) + $4.5 bank fees = $102, but they do that.

They just say $102 from merchant x. That is a bit dishonest on their part as the merchant does not get the $102, in my opinion. Basically they want to hide their fees so you can't see what it is costing you.

They deserve some fees, and it makes sense that they make a bit for foreign currency transactions in my opinion. Remember the merchant is already paying something like 1.5 to 3% (or more) for various fees on the credit card transactions.

For 310 MYR it really doesn't amount to much. But imagine making 3, 4 or 5% on tens of million of credit card transactions each month. Quite a nice amount of cash to have.

kennyboy33

So just to confirm pls, is it relatively easy to obtain a credit card in Malaysia for a MM2H'er ?

wife and I coming to live soon from UK

Thanks

Ken

bakedbean

I don't know if this is the common way for MM2Hers but we got a credit card from our bank but had to match the credit card limit with a fixed deposit. And what a sensible idea.