24 September 2008 - Paying Bills

Paying Bills
Wednesday 24 September 2008

We got our first piece of mail at our new home on Monday - a bill! Just like in the USA, most mail is bills.

However paying bills in Thailand is not just like in the USA. Very few people in Thailand have a personal checking account. Writing a check in Thailand is a very serious thing. If the check is not good, you have committed a very serious crime. The bank does not cover the "Lack of Sufficient Funds" and charge you a fee for their service like in the USA. A check that bounces is similar to stealing from someone and you could go to jail. Because of this serious consideration, Thai people and most expats deal on a cash basis. Larger stores will accept credit cards but they typically will add 3% to the invoice amount for a larger credit card purchase.

When I lived in Brasil, most of the people did not have checking accounts either for the same reason. However in Brasil the additional 3% credit card surcharge was not common - I suspect that it was built into the original posted price.

Because personal checking accounts are not common here or in Brasil, the banks have developed alternative methods for paying bills. In Thailand, most people have a savings account. You can take your utility bills to the bank and pay them out of your savings account or with cash. You can also pay your utility bills at any 7-11 store and some other commercial places. This is quite convenient because for every Wat in Thailand (previous blog entry about how many Wats there are) there must be two 7-11s.

I have a joke that I tell people about giving directions to where I live "I am around the corner from the 7-11 just down the street from the picture of the King". There are so many 7-11s and pictures of the King around in Thailand that this is equivalent to giving someone the sleeves off your vest - you are giving them nothing. Maybe you have to visit here to appreciate the joke - the expats do.

In Brasil there is a similar process. You can go to an ATM at a branch of your bank and scan the bar code at the bottom of the bill - any bill, and transfer the money directly from your savings account to pay the bill. In Brasil you can also go on the Internet website for your bank and type in the 20 to 25 digit code for each bill and pay directly over the Internet. The 20 to 25 digit code identifies the account number, Payee, bank, and amount due.

If you deal with a new vendor such as a Travel Agent for a special trip, they will give you the amount due along with the digital code for your transaction. You then take care of the payment and in 15 minutes the agency can confirm that they have received payment.

In Thailand you can make transfers from your savings account directly to another person's or company's account with the same bank or different bank using your Bank's ATM.

When I rented a condo in Pattaya, Thailand, each month I transferred the rent from my savings account directly into my landlord's saving account. Because we both used the same bank in the same banking district, there was no charge for the service. The transfer is credited immediately.

When it was time to return my deposit for the condo, he transfered the funds from his account directly into my account while I was living in Vietnam.

When I imported my household goods into Thailand there was some duties that had to be paid. The moving company in Bangkok took care of the details but I had to pay them. Their agent gave me the name of the bank and the account number. On the first occasion, I had the customer service representative at my local bank branch take care of the transfer. On the second occasion when the storage fees for the household goods were due, I got on the Internet for my bank account and transferred the money directly myself. Although he had an account in a different banking company than the bank that I use, his name came up on my screen when I typed in the account number and selected his bank from the drop down screen. In less than 5 minutes he was paid and knew that he had been paid.

This ability to pay bills on a cash basis is very efficient and convenient.

The other day I wrote about having 21 people onboard a songthaews, I thought that it was a record. I was mistaken - very mistaken. I was not even close. Last night on our way to Tahsang Village, I saw not one but two different songthaews travelling down the road crammed with student passengers with 6 to 8 students riding outside on top of the canopy which covers the pickup truck bed!! Since our daily rain had arrived and finished earlier last night, there was a spectacular sunset. The boys atop the songthaew had a cooler breeze and a a great view to enjoy the prolonged sunset on their way home.

The days are getting shorter here in Thailand. The sun sets around 4:45 PM. There is no daylight savings time in Thailand so we do not adjust our clocks during the year - we go with the flow and accept what light that is given when it is given. The days will get shorter by a little bit each day until 21 December when they will get a little longer each day. Because we are fairly close to the equator, the difference between the longest and shortest day of daylight is not anywhere near that of northern or southern locations. I believe the difference is around 2 hours - noticeable but not inconvenient.