Once you arrive in China you will need a way to access your money, and there are a few things you should prepare for before you go. China is still a largely cash-based society, so you may find it a bit different from the check or credit-card-based society that you are used to. The basic options for handling money include cash, traveler’s cheques, ATMs and credit cards.
Cash
Bringing large sums of your home currency is probably not the best way to get your money to China. Carrying cash is always a danger and pickpockets are definitely present in China. You will, however, want to bring some cash with you so that you will have something to use right away.
Many banks will allow you to exchange your money to Chinese currency before you go, which makes things even more convenient. It may take them a few days to get the Chinese currency though, so plan ahead. If you don’t get your money exchanged before hand you’ll need to do it once you get there at either the airport or a bank. The airport probably won’t give you the best rate, but again you’ll want some money when you get there for a taxi before you can even get to a bank. Banks will give you a better rate, but some banks won’t exchange foreign currencies.
The best place to exchange currencies in China is Bank of China. Many other banks will exchange currencies, but you usually can’t tell until you go in and ask. To exchange currency you will need your passport, and plan on having to fill out some paperwork.
Traveler’s cheque
Traveler’s cheques are a safe way to transport larger sums of money. They are however, more difficult to get exchanged and essentially only the Bank of China will do it, so it can be difficult if you can’t find one. There will also be a service fee for exchanging them. American Express has some offices where you can exchange their traveler’s cheques without a service fee, but they are only located in major cities. American Express also offers a traveler’s cheque card – check their website for options. As with cash, you will need your passport to exchange traveler’s cheques.
ATM
ATMs are one of the most convenient ways to handle getting money in China. You should check with your local bank and find out what service fees will be attached when you withdraw money in China. Some may have large fees, but others will charge you only a regular ATM fee of $1.50. Many banks prevent withdraws from foreign countries as a security precaution, so be sure to inform your bank before hand that you will be in China so that they don’t prevent you from withdrawing from a foreign country.
By using ATMs you can withdraw moderate amounts of money a few times rather than carrying large sums with you all the time. You should be cautious however, to use only ATMs located inside large banks to ensure that your card information does not get stolen.
Credit Cards
China is still a largely cash-based society and so credit cards are not used in very many places. Their use is expanding, but don’t rely on being able to use your credit card for all purchases. Generally large companies such as airlines will accept your card, but don’t expect it in small stores. Also if you do not inform your credit card company that you will be traveling for security reasons they will most likely not approve a purchase in a foreign country.
Additional resources: (see “What resources are available?” for additional details)
http://www10.americanexpress.com/sif/cda/page/0,1641,22395,00.asp?us_nu=dd –American Express traveler’s cheques and cards