Money Matters in China
Currency
After you arrive in China, you will exchange your US dollars for China's currency, the renminbi. The unit of currency is called a yuan, and commonly called a kuai. At writing, USD $1 = 7.55 kuai.
Exchanging Money
When you exchange money, you will receive a receipt. Keep this receipt, as you may need it when you leave the country and want to exchange renminbi back to dollars. Do not under any circumstances exchange money on the street (on the black market). This is illegal. Also, sometimes you may receive fake money. You should exchange money at banks, hotels, and stores which have authorized tellers. There are also some ATMs on campus where you can withdraw money. We recommend that you bring more than one ATM or Debit card, in case one card is missing, stolen, or gets eaten by an ATM machine.
Travelers checks
You should definitely plan to bring some money ($200-$300) in travelers checks to have upon arrival. If you have the money available, you can also bring all the money you need for the semester in traveller's checks, and exchange them as necessary throughout the term. Travelers checks offer a better exchange rate than cash, and can be replaced if lost or stolen.
You can cash travelers checks at most Bank of China branches, including those at the Beijing and Shanghai airports, at the CITIC bank, and at other banks.
Credit cards
Credit cards are not widely accepted in China, as they are in the U.S. They may be used at hotels and some large stores, restaurants, and airlines. However, many small stores and restaurants do not accept credit. Most money transactions in China take place in cash. If you have a VISA or MasterCard in your name, you may get a cash advance at a Chinese bank. However, fees for accessing money this way are high, often 3% on each transaction, and you often need to pay interest in the money immediately. We recommend that you use this method of accessing money in an emergency situation and not as a regular way to access all your funds for the term.
ATM Cards
A convenient way to withdraw money from your account at home is to use an ATM card that has a VISA or MasterCard logo. However, you should not rely on ATMs as your only source of cash, as sometimes cards do not work at certain ATM machines. The Bank of China is one of the many banks that is widely available and accepts many cards.
Be sure to carry the PIN number in a safe place separately from your card, and also confirm with your bank that your ATM card will work internationally. It is best to test your card in the U.S. before you leave, to make sure it works with your PIN number. We also advise that you call your bank or credit card company to let them know that you will be using the card in China. Sometimes banks may put a stop on card transactions overseas as an added customer security.
Wiring Money
Your parents may send money to you through American Express at a branch near their home, and you can pick up the money at the American Express office in Beijing or Shanghai. There is a service fee for transferring money this way.
Western Union is another good way to send money to China. It is safe and fast, usually taking two business days to transfer money. In China, Western Union works with China Post together, so that you can receive your money transaction at many post offices in China.
