How To Travel With A Light Wallet In China
March 20th, 2007
Submitted By: Patrick McGuire
Here’s a quick tip for those who are a little concerned about carrying large amounts of cash to China. If you’re a Bank of America customer, you can use China Construction Bank ATMs without any fees. It’s pretty convenient; it really saves you the trouble of carrying a lot of money and they’ll dispense the local currency (saving you currency exchange fees). I haven’t tried it in China, naturally, but I’ve used Barclays Bank ATMs in England a few times and it was just as easy as taking money out in California (except you can’t check your balance). From my experience, the exchange rate seems to be about as good as you’ll find, but it’s been a couple of years. For those who aren’t B ofA customers, you might check with your local bank to see if they also have an arrangement with a Chinese bank. For those from China or who have been to China, how prevalent are CCB ATMs? I know they’re one of the biggest banks in China, but are they easy to find?
Professor Carr Addendum: Good post, Patrick! China Construction Banks are everywhere. But I would be surprised that there would be no fees for using BofA ATM cards. EVERY Chinese bank charges “roaming” fees when you use your ATM card outside the city in which you have an account with the same bank! So if I lived in Beijing and use my China Merchant Bank card at a Chinese Merchant Bank ATM in Guangzhou, I will be charged a fee of 0.5% for deposits and withdrawals. It’s minimal if you take out a few hundred, but if you take out 10,000 RMB (roughly $1,200 US) and the fee is 50 RMB, well, that’s enough for a good foot massage!! If Chinese banks charge their own customers just because they move across city lines, guess how much they would charge foreign cards!? So you may want to consider the following …. verify with B of A first. My experience with students in China is that they charge about $5 US per withdrawal. Citibank and HSBC have ATM machines at major airports and are fairly easy to use WITHOUT fees for their customers.
Oh, and two other important notes … you can only take/bring $5,000 (US) CASH into China with you. There is NO WAY any of you should be taking anywhere near that much money with you into China!! (See my FAQ questions on this point in your handout re: how much $$ to bring and how much most students spent in China on last year’s trip!!). The only way you would want to bring anything remotely close to that amount is if you are staying in China or Asia to travel for some time at the end of our MBA trip.
Also, we will fly into Guangzhou and the hotel we will stay at is very nice — I think you will be pleased. You will all be able to exchange money there at the hotel the very first day we arrive. The rate in the hotel is about the same as what you would get in/at a bank so do like me and exchange at the hotel!! Don’t obsess over locating a rate that is, e.g., 7.9 to 1 versus 7.8447 to 1 — as splitting hairs like that on a trip like this is just too much work and it’s too damn hot in China to be walking all over a town trying to save a US dollar or two!!
Entry Filed under: Pre-Departure, China, Misc.
3 Comments Add your own
1. Patrick McGuire | March 20th, 2007 at 11:15 pm
Bank of America has an agreement with a few of the major banks in foreign countries to provide free ATM access to their customers. They call it their Global Alliance. So BofA customers can use Barclays ATMs in the UK, BNP Paribas ATMs in France, CCB ATMs in China, all without fees. It’s a mutual agreement, so BofA won’t charge CCB customers fees to use ATMs here also. As a side note, BofA is a part owner of CCB, so that would explain why they chose to ally with that bank as opposed to another. In using Barclays ATMs in the UK, it was VERY convenient because I wasn’t charged any fees at all as a BofA customer. It’s as if I were using a BofA ATM here at home! I pulled this off the Bank of America website:
Travelling Internationally?
Use your ATM card or Check Card within our Global ATM Alliance in the countries shown with no fees.
Barclays (United Kingdom)
BNP Paribas (France)
China Construction Bank (China)
Deutsche Bank (Germany)
Satander Serfin (Mexico)
Scotiabank (Canada)
Westpac (Australia and New Zealand)
2. Derrik Fischer | March 23rd, 2007 at 1:06 pm
Chris, the frequently asked question that you are referring to implies that we should bring the amount of cash that we anticipate spending over the entire three weeks with us. However, in my experience with traveling in developing countries or even in developed countries (including Europe and U.S.), I have found that it is best to never have in your possession more than a few days worth of cash. Almost every time I have traveled outside this country, someone I am with has either lost or been robbed of a ridiculous amount of money or possessions (by ridiculous I mean $60-$150), I can’t even imagine how irate I would be if I lost 3-weeks worth of cash. With that said, do you still think it would be wise to take 3 weeks worth of cash with us on this trip, or will we have ample opportunity to restock our wallets every few days at a bank or ATM?
Additionally, for those of you who have traveled to Thailand, Cambodia, or Vietnam: Are banks/ATMs easy to come by in these countries?
3. Chris Carr | March 28th, 2007 at 12:54 pm
Derrik (and all),
Good comment and question.
Everyone’s situation will be different so it’s hard to effectively counsel all 33 students on how to proceed.
But, I can tell you what “I” would and plan to do …
Take $300 (US) in cash with me. Keep most of it in the safe in my hotel room; only carry $50 on me at any one time. There is no way I will spend this much in China. But I may be unique in that in/on my own time I won’t go clubbing, I won’t drink alcohol or spend $$$ on that, and, I don’t let folks back home make me feel guilty about not buying them tons of gifts from China! I will buy my two kids and wife something basic to take back as a gift, but certainly nothing extravagant and/or that takes up room in a suitcase!
I will also take $500 (US) in travelor’s checks as a back-up. I will keep them in my hotel room safe at all times. I can’t imagine using any of them, unless some emergency comes up.
If/when the need arises, I will have access to plenty of ATMs and I could choose to use them as long as I don’t mind paying the fee.
I will also take one credit card with me, to be kept in my hotel room safe, as a back up safety valve if I need it.
Let me know if you have other questions.
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