Method of Payment in China

[MaxwellSmart]

Hi all,

I am travelling to Shanghai next month and I would like to know how people pay for products/services/meals - Card or cash?

I am with ANZ and I understand for every card transaction performed o/s, I will be charged conversion fees.

Is there another facility/method of payment people can use to avoid conversion fees?

I was told today that a mastercard travel passport should be used overseas to avoid this, however, I have found out that it cannot be loaded with RMB?

It can be filled with all other major currencies - except the RMB.

I do not intend to carry cash.

Any ideas?

Thank you.

 

[wylie]

We have a 28 Degrees Mastercard with no fees. It is recommended by many people in magazines and articles about travel.

No fees to use it and no exchange fees. No fees to draw money out.

 

[MaxwellSmart]

Thanks Wylie.

 

[skater]

We have a 28 Degrees Mastercard with no fees. It is recommended by many people in magazines and articles about travel.

No fees to use it and no exchange fees. No fees to draw money out.

Í've never heard of this. I buy stuff from the USA all the time and I'm paying probably $60mth in transaction fees so will definately look into this.

Thanks Wylie.

 

[moyjos]

I use a mixture of cash and cards.

I generally budget for $50au a day in cash then if I want anything big I use the card. This trip I used an aust post prepaid "load and go" visa card.

My minor paranoia . won't allow me to use my regular credit card overseas mainly because it has a huge limit and when on hols I don't check my accounts as regularly as I do when at home.

Have a great trip Shanghai is a great city. Try and see some of the older (poorer, dirtier) side as well as the well polished ready for tourist side.

 

[wobbycarly]

Another vote for the 28degrees card (http://www.28degreescard.com.au/)

I don't have one (yet) but my research suggests it's good value. Only issue for me would be ATM withdrawals. Being a credit card, ATM withdrawals are cash advances, unless the card is in credit.

2 For domestic ATM withdrawals, there is no ATM owner fee for cash withdrawals from Westpac ATM’s but you may be charged owner fees from non Westpac ATM’s. You will be advised of the charge at the time of the withdrawal. For overseas ATM cash withdrawals, you may be charged ATM owner fees but you will be advised of the charge at the time of the withdrawal.
3 Cash advances are charged interest from the date of withdrawal.

 

[Melbournian]

Hi all,

I am travelling to Shanghai next month and I would like to know how people pay for products/services/meals - Card or cash?
I am with ANZ and I understand for every card transaction performed o/s, I will be charged conversion fees.

I was told today that a mastercard travel passport should be used overseas to avoid this, however, I have found out that it cannot be loaded with RMB?

It can be filled with all other major currencies - except the RMB.
I do not intend to carry cash.

Any ideas?

Thank you.

It would be wiser to carry some cash unless you are just hanging around the high end malls

Most places take the Chinese credit card known as union pay which is used mainly by local Chinese. Forget Amex, MasterCard or visa.

Say you wanted a bowl of noodles or dumplings at a shop near your hotel or on the way to your tours - highly doubt they would take credit card.

Even in markets etc cash is the way to go. U're traveling to china not the us.

 

[alexlee]

Another vote for the 28degrees card (http://www.28degreescard.com.au/)

I don't have one (yet) but my research suggests it's good value. Only issue for me would be ATM withdrawals. Being a credit card, ATM withdrawals are cash advances, unless the card is in credit.

Do they just make up the fee with a crappier exchange rate?

 

[menty]

The exchange rate is actually quite good.
On par with xe.com most of the time

 

[VYBerlinaV8]

It would be wiser to carry some cash unless you are just hanging around the high end malls

Most places take the Chinese credit card known as union pay which is used mainly by local Chinese. Forget Amex, MasterCard or visa.

Say you wanted a bowl of noodles or dumplings at a shop near your hotel or on the way to your tours - highly doubt they would take credit card.

Even in markets etc cash is the way to go. U're traveling to china not the us.

Even in the US I find cash is often better than credit card.

 

[Melbournian]

true cash is better - u aren't going to buy a hotdog using a credit card a a street stall but if you got to macys or 5th avenue.

Besides - US were the creators of these credit cards - and they encourage spending on credit cards - big money generator for the banks especially the titanium black american express made of metal- got a friend who has 1 million limit and flies unlimited on 1st and business class all the time just by having the card free upgrades.

 

[M.Investigator]

For day to day transactions, cash is definitely the best. Make sure you have tens and twenties because getting change for big notes can be a hassle. Major credit cards like American Express, Mastercard, Visa and Diners are also widely accepted in hotels and high end restaurants and shops.

 

[Aaron Sice]

true cash is better - u aren't going to buy a hotdog using a credit card a a street stall but if you got to macys or 5th avenue.
.

unless you're a terrorist.....

 

[Milkieboy]

28 Degrees is the way to go. You can also load it with cash and withdraw it for no fees. I am currently in the US and solely using 28 Degrees card with no issues at all and not being charged any fees for credit purchases or cash withdrawals. Only possible problem I have found is they give you a smallish limit. With some countries doing pre authorizations on your card for hotel stays it can cause you to get close to your credit limit especially if using multiple hotels.

 

[missgreeneyes]

btw, can someone explain to me why is it banks love you to spend on their cards?
What is the benefit for them? Is it just the fees levied, which are usually a percentage of the expenditure?
Let's say you buy $100 worth of goods from Shop X. You purchase with your Amex. So Amex pays Shop X $100 from your account. Apart from the fees, I don't see any profit for the bank.
Or is it because, between the time they pay the merchant and they deduct the money from your account, they can lend the money out, gaining interest from this money?
I don't quite get it...

 

[moyjos]

btw, can someone explain to me why is it banks love you to spend on their cards?
What is the benefit for them? Is it just the fees levied, which are usually a percentage of the expenditure?
Let's say you buy $100 worth of goods from Shop X. You purchase with your Amex. So Amex pays Shop X $100 from your account. Apart from the fees, I don't see any profit for the bank.
Or is it because, between the time they pay the merchant and they deduct the money from your account, they can lend the money out, gaining interest from this money?
I don't quite get it...

1: you spend your $100 at shop x... Shop x pays up to 3% in fees ($3.00)
2: 99% of people DON'T pay their balance off without incurring (20%?) interest.

 

[missgreeneyes]

but what about corporate cards?
I think most employees pay (or their company pays) off their corporate cards on time.
Because normally there is disciplinary action from the company if they don't.

 

[sanj]

but what about corporate cards?
I think most employees pay (or their company pays) off their corporate cards on time.
Because normally there is disciplinary action from the company if they don't.

the card provider still gets paid a % of the transaction.