Money

Travel in Thailand is very affordable and therefore attracts many budget travelers. While Thais love bargaining, they do not appreciate haggling over a few cents. Sometimes such tourists will be impolitely referred to as kee neow (meaning "stingy" or "cheapskates" in Thai). As long as you behave well, you will be afforded a warm welcome.

Before bargaining, remember that average Thai incomes are a fraction of those in developed countries. In 2005, the World Bank estimated average incomes to be around $220 per person, per month, and therefore standards of living and corresponding prices reflect this. Compared to home, many excellent hotels and restaurants cost a fraction of the price in Thailand, and because of this Thais consider any foreigner to be extremely well off.

Always bear in mind that throughout Thailand, the baht will be the only acceptable currency, and foreign currency is rarely, if ever, accepted for everyday transactions or taxis.

Currency

The Thai unit of currency is the Baht (written B, Bt, or Bht) and is divided into 100 satang. Tiny copper coins represent 25 and 50 satang; silver coins are 1B, 2B (rare), and 5B. The larger 10B coin is silver with a copper inset. Bank notes come in denominations of 20B (green), 50B (blue), 100B (red), 500B (purple), and 1,000B (brown).

There are no restrictions on the import of foreign currencies or traveler's checks, but you cannot export foreign currency in excess of 50,000B (US$1,428/£769) per person.

Exchange Rates -- Before the currency crisis in July 1997, one U.S. dollar could buy you 25 Thai baht. During the worst of the crisis, the value was 55B to the dollar. Recent months have seen the Thai baht fluctuate from 40B per dollar to as little as 32B for a greenback. Amounts listed throughout this guide are calculated at $1 = 35B and £1=65B. For the most up-to-date figures, see www.xe.com.

Some travelers like to change a little money before leaving home. You can sometimes buy Thai baht at your local American Express or Thomas Cook office or order baht at your bank; however, it is much easier to visit an airport exchange booth in Thailand. There are also exchange kiosks at most international airport arrival halls in Thailand -- but don't rely on them being open 24 hours.

ATMs

Alternatively, if you have an ATM or credit card, these can be used in 24-hour cash machines that dispense money in 100, 500, and 1,000 baht bills. Thai ATMs accept most international bank card systems. Cirrus (tel. 800/424-7787; www.mastercard.com) and PLUS (tel. 800/843-7587; www.visa.com) networks span the kingdom. Look at the back of your bank card to see which network you're on, and then call or check online for ATM locations in Thailand. Be sure you know your personal identification number (PIN) and daily withdrawal limit before you depart. Note: Remember that many banks impose a fee every time you use a card and that fee can be higher for international transactions (up to $5 or more) than for domestic ones (where they're rarely more than $2). In addition, the bank from which you withdraw cash may charge its own fee. To compare banks' ATM fees within the U.S., use www.bankrate.com. For international withdrawal fees, ask your bank.

The best banks to visit are Bangkok Bank, Thai Farmer's Bank, Siam Commercial Bank, and Bank of Ayudhya, since each has major branches in every city and many small towns.

You can also get cash advances on your credit card at an ATM. To avoid your bank suspecting you are an overseas fraudster and freezing access, call your credit card company before you leave home to let them know you'll be traveling abroad. Keep in mind that you'll pay interest from the moment of your withdrawal, even if you pay your monthly bills on time.

Traveler's Checks

In Thailand, traveler's checks are less seen nowadays, having been replaced by ATMs. Given the fees you'll pay for using an ATM overseas, though, you might be better off with traveler's checks if you're withdrawing money often, or traveling out of Thailand to Myanmar (Burma) where credit cards are currently banned and ATMs do not yet exist.

The most popular traveler's checks are offered by American Express (tel. 800/807-6233 or tel. 800/221-7282 for cardholders -- this number accepts collect calls, offers service in several foreign languages, and exempts Amex gold and platinum cardholders from the 1% fee); Visa (tel. 800/732-1322; AAA members can obtain Visa checks for a $9.95 fee for checks up to $1,500 at most AAA offices or by calling tel. 866/339-3378); and MasterCard (tel. 800/223-9920).

Be sure to keep a record of the traveler's checks' serial numbers separate from your checks in the event that they are stolen or lost. You'll get a refund faster if you know the numbers.

American Express, Thomas Cook, Visa, and MasterCard also offer foreign currency traveler's checks; they're accepted at locations where dollar checks may not be.

Another option is the new prepaid traveler's check cards, reloadable cards that work much like debit cards but aren't linked to your checking account. The American Express Travelers Cheque Card, for example, requires a minimum deposit, sets a maximum balance, and has a one-time issuance fee of $14.95. You can withdraw money from an ATM (for a fee of $2.50 per transaction, not including bank fees), and the funds can be purchased in dollars, euros, or pounds. If you lose the card, your available funds will be refunded within 24 hours.

In Thailand, traveler's checks are best exchanged in a main branch of city-center banks or in a five-star international hotel. They may be accepted in Bangkok at the small exchange counters, but not always. (The best rates are at banks.)

Credit Cards

Credit cards are another good way to carry money. They also provide a convenient record of all your expenses and generally offer relatively good exchange rates. You can withdraw cash advances from your credit cards at banks or ATMs, provided you know your PIN. If you don't know it, call the number on the back of your credit card and ask the bank to send it to you at least a month before you leave home. It usually takes 5 to 7 business days. These days banks will refuse to give this information over the phone.

Keep in mind that many banks now assess a 1% to 3% "transaction fee" on all charges you incur abroad (whether you're using the local currency or U.S. dollars). It's best to sit down and work out beforehand which system is better for you and your shopping needs.

International hotels and larger businesses in urban centers accept major credit cards. Despite protest from credit card companies, many smaller establishments add a 3% to 5% surcharge for payment by credit card (this is above and beyond any fees levied by your credit card company). Be sure to ask before handing over your card, and keep all receipts. When using your card in Thai department stores, also be aware that each section must ring up its receipt separately -- so don't be alarmed when a clerk walks off with your card to process the transaction.

Never leave your cards with others for safekeeping (such as during a trek). If you don't want to carry them, put them in a hotel safe. There have been numerous reports of charges made while cards were left at guesthouses, or small shops running extra slips against a card.