Banking in China may be the most frustrating experiences you have, hours of waiting, tons of signed documents, multiple copies of the passport... Is there any easier way to send money as pain free as possible?
Let’s have a look at some options.
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Western Union
As the biggest, most trustworthy and recognized all over the world, Western Union’s process for sending money is pretty straightforward.
We recommend using SPD bank (SHANGHAI PUDONG DEVELOPMENT BANK) as they are working closely with Western Union and have a greater understanding of the process than other banks.
Generally if it is a pain free process with SPD but as with all banks it does take time to complete all the paperwork to complete your transactions.
Restriction
Exchange up to $500 dollars per person per day. No amount limit for customers carrying US dollar cash if you are a foreign passport holder in China.
Time
Western Union is immediately available (a great option if you are in a hurry).
Charges
(fee effective only in SPD banks; apply to most countries)
■ $15 for principal under $5,000 dollars
■ $20 for principal greater than $5,000 dollars
Have you known that you can also set up a Chinese PayPal account with your Union Pay bank account and transfer money to your home account?
Once you go through the signing process you can transfer money to any other PayPal account around the world.
Time
Instant but it takes a couple days to withdraw the money from your virtual wallet into your bank account.
Charges
It charges a cross border fee due to extra costs involved in processing multi-currency payments that works out to be 5%. But the cross border fees can be expensive for sending large amounts.
Bitcoin
As a digital currency that can be purchased on online exchanges, these online exchanges act like any normal foreign currency exchange where you pay for bitcoin with government issued currency at a fluctuating market rate.
Restriction
Once you have purchased bitcoins from an exchange, you need to store them in a virtual wallet, which allows you to either store your bitcoins or spend them on goods and services.
Charges
No service fees. But since the exchange rate is consistently fluctuating, in some cases you can either benefit from the rate or lose a little bit of money from it.
Alipay
Unfortunately this option is only available to Chinese residents. So if you have a local friend you trust, this is a great way to transfer money home.
All they need is the bank’s details from home and they can transfer from their Alipay account.
Restriction
Exchange up to $500 dollars per day. Officially, not available for foreign passport holder.
Time
2/3 days for the money to arrive in your home account.
Charges
It depends on the amount of money and the country.
For example, 100-200 RMB to send 1,0000 RMB back to the UK.
Wire the money from your bank
Just go to the biggest branch in your city and hope that you get a friendly cashier who can speak English to you.
Restriction
To control large capital outflows, foreigners are restricted to only sending a measly 500USD per day. If you need to send more home, do the whole process again.
Time
It can take up to about a week to arrive in the other persons account. Don’t forget your passport and a few hours of your life.
Charges
On average about 300 RMB per 500$
Send a bank card home
Sounds simple and it really is. Open a second account and send the bank card back home. This is the best option if it works for you but there are sticky points.
■ Are there union pay ATMs near your home (you can check the website).
■ Does your bank card work outside of China? There have been some issues with newer cards not working overseas.
■ How do I get the card home? Couriers say that bank cards can’t be sent home so you need to be creative on this note.
Once you overcome these obstacles the process is easy. Chinese banks don’t charge high rates for foreign withdraws and the FX rates are comparative to XE.com rates.
So these are the main options,
which one have you used?
❶ For quick and convenience on small amounts → Paypal or Western Union would be the first choice
❷ If you have Chinese friends to help to transfer money → Alipay
❸ If you don’t have a Chinese person to help, and you are looking for a cost-effective way of sending → Western Union & SPD would be the ideal choice
Hope this helps you.
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HACOS,Business Services Solutions Master