Sending Money to China

[Bob & Minglian]

The $1.50 USD bank transaction fee that I stated in my post is incorrect. Since September 2002 when I opened the second (subsidiary) checking account we have been charged $1.75 USD. That amount is still $1.75 USD even after August 1. Maybe the difference is because my account was opened in Oregon.

[Jatuke]

Western Union is the winner.

[Guest blsqueaky]

Well my 2 cents here, I know that I sent my wife 2 credit cards, and one of them allows her to take the money that she needs every month. The only thing that bothered me was that on top of the extra finance charge that Ihave to pay, Bank of China also charges a fee to get the money. It is only about $4.00, so this I can live with. As long as she is happy.

 

Now the only other problem is that I have to keep telling her how to use credit card. So new for her, in fact, first time she went over limit. I was just glad that I sent payment that month way early.

 

Dave and Sarah, I thought that you taught her this.

[Eric&Yuhui]

So new for her, in fact, first time she went over limit.

She should have said then : Honey, raise the limit ! No problem

 

 

yeah.. whatsa problem ?

[Bob & Minglian]

I am still very much in favor of the Bank ATM card I gave my wife. She can access up to 2500 yuan per day and the only charge I get is the $1.75 fee from Bank of America. She can only access that "secondary" checking account yet with my "primary" checking account I have full use of both accounts. I go to a Bank of America ATM and simply transfer money from my primary account to the secondary account and she has immediate access to it. And since that secondary account bank ATM card does not have a visa logo she can only access that secondary account to withdraw money as she needs it. It does not serve as a credit card. So, no risk in going over the amount available. No risk if card is lost or stolen. And the card itself is in my name only so I can manage the account. I get the statements. It's cheap, easy, and safe.

[lele]

You know what I would REALLY like to know is, what is the least expensive way to get money to China.

 

I've done the VISA thing and been dinged by the card issuing bank and the Bank of China for changing the money over to RMB, on top of getting a lousy exchange rate.  The resulting exchange is nothing short of onerous.

 

I've used my regular ATM card at the Bank of China in Shenzhen, Chongqing and Hechuan.  Sometimes it's worked and many times it hasn't.  The exchange rate is decent but nothing to write home about.  One time the machine didn't give me money but I discovered money was withdrawn from my account when I got home.  The bank refunded my money, though.  With an ATM it's best to keep good record of what you withdraw and when.

 

The best exchange rate I get is, at the request of my wife, to "bring cash" (which I hate doing).  We go to a bank with her mother.  Outside the bank there are several people standing ready to exchange money.  Her mother briefly talks to one of them, then everyone goes into the bank and to a teller.  The teller confirms that it's real Chinese money and we make the exchange.  My wife's mother gets me the FULL exchange rate every time.  Why this works, I don't have a clue.

Hmm!

 

Actually, for the best exchange rate, use Traveler's Cheques! They have a slightly higher exchange rate than Cash, and they are a whole lot safer too. The only problem is that there is generally only 1 bank in every town (including LARGE Cities) that actually will accept them. Luckily, in many cases, that Bank is centrally located or in the Airport. :-)

 

However, you need to be careful, as often times on our side, purchasing these is a real hastle and can be costly...

[lele]

I am still very much in favor of the Bank ATM card I gave my wife.  She can access up to 2500 yuan per day and the only charge I get is the $1.75 fee from Bank of America.  She can only access that "secondary" checking account yet with my "primary" checking account I have full use of both accounts.  I go to a Bank of America ATM and simply transfer money from my primary account to the secondary account and she has immediate access to it.  And since that secondary account bank ATM card does not have a visa logo she can only access that secondary account to withdraw money as she needs it.  It does not serve as a credit card.  So, no risk in going over the amount available.  No risk if card is lost or stolen.  And the card itself is in my name only so I can manage the account.  I get the statements.  It's cheap, easy, and safe.

This fee works out to $17.50 for 3000$US sent, but the Bank of China option to send from their NYC branch works out to $15.00 for that sent.

 

Also, what is the exchange rate that she is being given?

 

Is it the bank-to-bank rate of 8.28:1 (which you get using the bank to bank transfer) or is it the cash to cash transfer rate of 8.2149:1, or is it the traveler's cheque exchange rate od 8.26:1?

 

Can they also withdraw the money as US$ like in the bank-to-bank option?

 

Thanks for the help with this! I am trying to figure out which is better. Clearly your method is more flexible in terms of location to withdraw the cash!

[mikem]

I have a checking account with Check Card (Visa logo) at Bank of America.  I opened a subsidiary account (second checking account) in the US and received a Check Card (no Visa logo per my request).  I gave my wife in China that second bank ATM card after making sure it worked here.  It takes seconds at a Bank of America ATM machine to transfer money from my primary checking account into the secondary checking account and it posts immediately.  Daily withdrawal limit is $300 USD here; in China, $2500 RMB.  My wife tells me when she withdraws money then I do a balance inquiry on that secondary checking account and I know the amount to debit in that check register.  The $2500 RMB is just under $306 USD.  She goes to a Bank of China in Shenzhen or Shekou to withdraw the money and has never had a problem.  If you decide to do what I have done it is best to get a Check Card without a Visa logo for obvious reasons.  Banks do not pay attention to ATM withdrawals if done in the US and China same day, even same hour.  You also don't want to run the risk of having a Visa logo and the card in China being used to charge purchases not known to you (lost card, stolen card, stolen numbers on face of card, and so on).  Having a subsidiary checking account also enables you to see all activity on that card, including the statement sent to your home address, but also does not enable the user of the secondary card access to your primary account.  Just make sure the secondary card is in your name only.  A US bank will not issue a joint card or open a joint account or give you a card in just his or her name in China.  I would also suggest not disclosing what your intent is with the second Check Card because, according to the bank, it is for your personal use only.  My view is that my wife now has a second ATM card in my name only that she can use to access money as she needs it.  The only fee we pay is a $1.50 USD per each ATM withdrawal because she's withdrawing money from a non Bank of America ATM.  I mailed the card to her and once received, I told her the password I set up and the importance of confidentiality.  It's worked out very very well for us.

Thats exactlly what I did works fine.. Unless there are no ATM in the town she lives in.. That was my problem so now what?? Pay western union OK wire transfer about $45 or and here is the no brainer..

If you have a PayPal account you can get a VISA debit card in anybodies name added to your account.

So then you can transfer from your bank account to your account and the SO can draw out even at the counter at the bank in town as the card is in his or her name. No credit check and it is free.

[Guest Fionas_Fiance]

ATM cards are the way to go, but watch out for "adjustments" that are done to your account a couple of weeks after she uses the card. At the ATM machine Bank of China said they were charging $1.50 for accessing a non-Bank of China account. Then when I got home, Wells Fargo said they were charging me $3.00 (!) for using a non-Wells Fargo ATM! Aaaargh!

 

Still, it is a hell of a lot cheaper and more convenient than wiring money. I opened a second account for Fiona and when I go there it's nice to know that I can withdraw up to $600 in a pinch, $300 from both accounts. And it is very easy to make transfers from my account to her account on-line, even in China.

 

Our ATM cards have worked at Bank of China in Shenzhen, LiJiang, Guilin, and Beijing. Communications Bank worked in Guilin and Shenzhen but didn't seem to work in Beijing - it is possible that there are two banks with similar names and I'm simply confused. In Beijing there was a "Beijing Commercial Bank" that was near our apt that worked, but it only allows you to take out 1000 RMB at a time, and it charges you separately for every withdrawl. Aaaargh! What a rip-off! But when you need cash....

 

There was one day in Shenzhen when my ATM card didn't work at either Bank Of China or at Communications Bank, and I hadn't used it for a couple of days so it wasn't an "it's still yesterday in the US" issue. I was afraid someone had somehow ripped me off but I got online and there was no activity on my account. The next day it simply started working again. Weird. But then again, I'm impressed that it works at all!