Credit Cards and Supermarkets in China

[JonathanM]

Has anyone used their US credit card in china at supermarkets? I find it much eaiser to swipe the plastic then using RMB.. Maybe it's just a habit I have back home.. So far I've only been able to use my Capital One card at Tesco and some of the more expensive foreign grocery stores..

 

That reminds me, is ever bank in china the same when it comes to the exchange rate.. so far three banks are giving me 6.75 on the dollar.. The current 1 for 1 rate is 6.82.. When i'm out and about tomorrow i'll ask a few more banks.. Just wondering if it differs from where you are in china or what bank your using.

[Randy W]

Has anyone used their US credit card in china at supermarkets? I find it much eaiser to swipe the plastic then using RMB.. Maybe it's just a habit I have back home.. So far I've only been able to use my Capital One card at Tesco and some of the more expensive foreign grocery stores..

 

That reminds me, is ever bank in china the same when it comes to the exchange rate.. so far three banks are giving me 6.75 on the dollar.. The current 1 for 1 rate is 6.82.. When i'm out and about tomorrow i'll ask a few more banks.. Just wondering if it differs from where you are in china or what bank your using.

 

 

6.75 is a fairly common exchange rate - that's basically equivalent to a 1% fee. Look for ones that will offer the 6.81.

 

A Bank of America debit card may be used at a China Construction Bank ATM for a 6.81 exchange rate, with no fee. The exchanging to foreign currency is done at the CCB for no fee.

 

You are not likely to do that well using a credit card. Best to use a Chinese debit card or cash.

[chengdu4me]

I think you will find that only major stores take any plastic. But, you may find that your purchase is declined by the card issuer as fraudulent. Make sure you let them know that you will be in China and want to use the card before you go. If you have a VISA/MC debit card, make sure they use it as a credit card, not a debit card.

 

All banks have three exchange rate. 1. The true (spot) rate which has nothing to do with why you are at the bank. 2. The buy rate. The price they will pay for buying your USD for RMB. 3. The sell rate. The price they will give you to buy your RMB for USD.

 

The buy rate fluctuates a little. Yesterday, I got 6.78 with a money exchanger outside the bank. The bank buy rate was 6.76, so I did a little better. If you are going to use a private money changer, let your wife/fiance handle it for you if you are not fluent.

 

Most(some?) US banks will give you a good (6.80 - 6.81) exchange rate when using your ATM card and then charge you $2 for using a out-of network bank. That is actually the best way to go if you can handle carrying cash. I used to get 2500 RMB from the bank here in Chengdu with a good exchange rate and then give up $2 on the US end of my account.

Edited March 23, 2010 by chengdu4me (see edit history)

[JonathanM]

6.75 is a fairly common exchange rate - that's basically equivalent to a 1% fee. Look for ones that will offer the 6.81.

 

A Bank of America debit card may be used at a China Construction Bank ATM for a 6.81 exchange rate, with no fee. The exchanging to foreign currency is done at the CCB for no fee.

 

You are not likely to do that well using a credit card. Best to use a Chinese debit card or cash.

 

Thanks.. I've also been using my BOA card at CCB to withdraw RMB. I didn't realize that was no exchange fee. As far as I know there is no fee using the Capital One Card international.

 

{edit} Repaired broken quote tags

Edited March 23, 2010 by dnoblett (see edit history)

[JonathanM]

I think you will find that only major stores take any plastic. But, you may find that your purchase is declined by the card issuer as fraudulent. Make sure you let them know that you will be in China and want to use the card before you go. If you have a VISA/MC debit card, make sure they use it as a credit card, not a debit card.

 

All banks have three exchange rate. 1. The true (spot) rate which has nothing to do with why you are at the bank. 2. The buy rate. The price they will pay for buying your USD for RMB. 3. The sell rate. The price they will give you to buy your RMB for USD.

 

The buy rate fluctuates a little. Yesterday, I got 6.78 with a money exchanger outside the bank. The bank buy rate was 6.76, so I did a little better. If you are going to use a private money changer, let your wife/fiance handle it for you if you are not fluent.

 

Most(some?) US banks will give you a good (6.80 - 6.81) exchange rate when using your ATM card and then charge you $2 for using a out-of network bank. That is actually the best way to go if you can handle carrying cash. I used to get 2500 RMB from the bank here in Chengdu with a good exchange rate and then give up $2 on the US end of my account.

 

Thanks for the info.. I'll check my capital one card online to see how much I actually got charged and match it up against the current exchange rate for that day. Capital One states that they don't charge you any fees for using the card internationally. I'll make sure I look for the private money changer outside some of the banks next time. In the meantime I will continue to use my BOA card at CCB.

[Michael]

I was just in a supermarket and it looks like you can use some kind of card. But my wife was not with me. So I cannot speak Chinese. Just the basics.

[Randy W]

I was just in a supermarket and it looks like you can use some kind of card. But my wife was not with me. So I cannot speak Chinese. Just the basics.

 

 

Yes - debit cards are becoming common. You can drop buy the China Postal Savings (yes, apparently another function of China Post) and buy one. Whatever amount you purchase it for is the amount you have available

[JonathanM]

I was just in a supermarket and it looks like you can use some kind of card. But my wife was not with me. So I cannot speak Chinese. Just the basics.

 

 

Yes - debit cards are becoming common. You can drop buy the China Postal Savings (yes, apparently another function of China Post) and buy one. Whatever amount you purchase it for is the amount you have available

 

 

Is the debit card from China Post something I could purchase? I wouldn't mind trying and i'm sure it's good just about everwhere (Major Chain stores)..

[Randy W]

I was just in a supermarket and it looks like you can use some kind of card. But my wife was not with me. So I cannot speak Chinese. Just the basics.

 

 

Yes - debit cards are becoming common. You can drop buy the China Postal Savings (yes, apparently another function of China Post) and buy one. Whatever amount you purchase it for is the amount you have available

 

 

Is the debit card from China Post something I could purchase? I wouldn't mind trying and i'm sure it's good just about everwhere (Major Chain stores)..

 

 

Yes - you give them the cash, they'll give you a pre-paid card

[dnoblett]

Last time I was in Guilin I used my visa card to buy groceries.

 

I don't much pay attention to fees or rates, tends to go with the cost of travel.

[Stone]

Last time I was in Guilin I used my visa card to buy groceries.

 

I don't much pay attention to fees or rates, tends to go with the cost of travel.

 

As I know, most U.S. banks started charging foreign transaction fees with either debit/credit cards since the financial crisis hit last year. My wife called before she left for China last year and the fee is not cheap.

 

You can call your bank and ask for a specialist who knows fees on foreign transactions.

[shenzhen]

I was just in a supermarket and it looks like you can use some kind of card. But my wife was not with me. So I cannot speak Chinese. Just the basics.

 

 

Yes - debit cards are becoming common. You can drop buy the China Postal Savings (yes, apparently another function of China Post) and buy one. Whatever amount you purchase it for is the amount you have available

You can also freely use Chinese Bank issued credit cards at most stores, supermarkets, etc. However you can only use international credit cards at major supermarkets (JUSCO, WalMart, TESCO, MYKAL, etc. -- and even then with a pain in the ass -- i.e. Passport/Name on card exactly same as Passport, 50 minutes of your time, etc), 3-5 star international hotels and 4-5 star chinese hotels, and major/high end speciality shops (i.e. LV, etc).

 

I always just use my US debit card to withdraw cash from the ATM (1% international transaction fee charged by my robber..bank). If I ever need more that the daily amount (limited by my US bank) then I can get a cash advance off the debit card from BOC/CCB/China Merchants. The cash advance does not have any interest (think of it as a larger ATM withdrawal) but you pay a transfer fee of 1-3% to the Chinese bank on top of the 1% international transaction fee to my US bank.

[Michael]

Well hope this answers your question. I just used my debit card at the Supermarket in Guangzhou. They also tahe credit cards.

 

Michael

[True Blue]

I was just in a supermarket and it looks like you can use some kind of card. But my wife was not with me. ....

 

What??? How is this possible? You must have friends in high places. Or perhaps your "training" has not yet begun.

 

I have never been allowed to venture alone into a supermarket either in China or in the USA without my wife accompanying me. I thought this was a requirement under some China/USA treaty law.

 

I did wander into a gas station market alone after pumping gas once. But I never told anyone until now.

Edited March 24, 2010 by True Blue (see edit history)

[Guest Tony n Terrific]

Last time I was in Guilin I used my visa card to buy groceries.

 

I don't much pay attention to fees or rates, tends to go with the cost of travel.

 

As I know, most U.S. banks started charging foreign transaction fees with either debit/credit cards since the financial crisis hit last year. My wife called before she left for China last year and the fee is not cheap.

 

You can call your bank and ask for a specialist who knows fees on foreign transactions.

The CC Co. charge a 3% tranaction fee on your purchases. On a $100 purchase you get tagged for only $3. Translation 1,095% APR. Not bad for the banks not bad at all.