BOT to resolve 1% DCC fee on credit cards with financial institutions, banks by May 1
The Bank of Thailand (BOT) will hold a meeting with financial institutions and banks to discuss their announcement last week on charging Visa and Mastercard credit cardholders a dynamic currency conversion (DCC) fee of 1% on overseas transactions.
The banks and institutions had said it would take effect from May 1.
According to several banks' announcements, Visa or Mastercard holders will be charged 1% DCC on purchase of products and/or services at stores registered abroad, or for withdrawals of cash in baht currency from ATMs in other countries.
The BOT’s assistant governor of financial institutions policy group, Somchai Lertlarpwasin, said the central bank would discuss the DCC fee and who will benefit from it.
If the service cost rose, service providers should clarify why it had increased, while people should be able to seek other alternatives for payment, he said.
He declined to answer a question on whether the 1% DCC fee was too high, saying that the central bank would hear comments from cardholders, financial institutions and card payment providers (Visa and Mastercard).
"So far, the BOT has received comments from customers," he said, expecting discussions with financial institutions to reach a conclusion by May 1.
