Representative example: When you spend £1,200 at a purchase rate of 21.9% (variable) p.a. with a fee of £3 per month, your representative rate is 27.7% APR (variable).
China has the highest population in the world, and hosts an abundance of diverse landscapes: from the skyscrapers of Shanghai to the Great Wall of China in the north – you certainly won’t run out of things to see or do. If you’re planning to use your plastic on your travels, or withdraw cash while you’re there, here’s what you need to know.
You can use your UK credit card in most popular tourist destinations and major cities without a problem. Outside of major cities such as Shanghai, Beijing, Guangzhou, Tianjin or Chengdu, however, China is still largely a cash-based economy. The apps AliPay and WeChat are also popular payment methods.
If you plan on visiting larger cities, such as Shanghai, Beijing, Guangzhou, Tianjin or Chengdu, you’ll find no significant problems when using a credit card. You can use your credit card at mid-sized and large hotels, restaurants and other businesses in most major cities. Outside of big cities, however, you’ll have trouble finding businesses that accept credit cards – and cash machines are scarce, too. It’s worth bearing in mind that if you use your credit card to get a cash advance, you’re likely to start paying interest immediately.
“Renminbi” is the official name for China’s currency, and “yuan” is the name of a unit within the renminbi currency. It can be helpful to understand this by drawing an analogy with British currency, in which “pound sterling” is the official name, but “pound” is the main unit of the currency.
Since China is mostly a cash-based economy, paying by cash is often easier and more convenient. While hotels and large businesses in the major cities may allow you to pay using your card, if you decide to visit smaller stores, markets or stalls, then you will have to pay using cash. For these reasons it is advisable to always carry some cash, just in case you decide to purchase souvenirs or food from smaller vendors. Plus, carrying cash gives you a back-up option in case anything goes wrong with your card.
Visa and Mastercard credit cards are widely accepted in China.
China is moving from magnetic-stripe technology to safer chip-enabled cards, meaning that chip and PIN is now the most common method of payment when using your card – just as it is in the UK.
Chinese cards come with a six-digit PIN. Cash machines of some banks accept four-digit PINs, and in some cases you can override the system by keying in two zeros before your PIN. However, this does not work at all ATMs so it is best that you check with your bank before you depart. Don’t forget that three incorrect attempts at entering the PIN will lead to a blocked card.
By exercising some caution when using your credit card in China, you’ll have a relatively trouble-free experience.
Instances of pickpocketing and theft are common at popular tourist destinations and in areas frequented by foreigners. Take extra care when venturing out after dark. There have been reports of thefts at airports, so remain vigilant when you arrive and depart. Don’t leave your purse or wallet in a parked car. Instances of petty crime tend to increase leading up to the Chinese New Year.
Some shops discourage credit and debit card payments because they have to pay transaction fees to their banks for the convenience. Others tend to charge their customers 1% or 2% extra to cover for the fee.
Credit card fees can leave a noticeable dent in your pocket when you’re travelling overseas, so know what you’re up against well in advance and choose a card with no or low fees.
Additionally you can get an idea of costs by using these online currency conversion tools from Mastercard and Visa.
A cash advance fee is calculated (and charged) when you withdraw cash from your credit card. It’s usually the greater of a flat fee or a percentage of the transaction. For example, “2.5% of the transaction, minimum £3.00”.
Ask yourself these simple questions before you leave so your spending in China does not hit any roadblocks.
When you’re in China, remember to always keep cash handy on you, or be aware of where the nearest ATM machine is.
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