Opening a Chinese Bank Account: In US vs China
May 6, 2018, 7:33 pm
#1
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Opening a Chinese Bank Account: In US vs China
I've had all of my credit cards rejected by 2 merchants here in China so far, and many more don't even take credit cards at all. I give up. I want to open a Chinese bank account so I can use local payment systems.
So ICBC has some branches within an hour's drive of my house in the San Francisco Bay Area. Therefore I am thinking of opening an account with them. But should I open an account with them at an SF Bay Area branch, or in China? My questions specifically are:
- If I open an account in China, I can get a UnionPay debit card and use it to fund Alipay and WeChat Pay. But can I get the money out in a US branch? Or add money to the account in a US branch?
- If I open an account in an SF Bay Area branch, can I get a Mainland China UnionPay card? Can I access the money in Mainland China, and will the account be in RMB or USD?
So ICBC has some branches within an hour's drive of my house in the San Francisco Bay Area. Therefore I am thinking of opening an account with them. But should I open an account with them at an SF Bay Area branch, or in China? My questions specifically are:
- If I open an account in China, I can get a UnionPay debit card and use it to fund Alipay and WeChat Pay. But can I get the money out in a US branch? Or add money to the account in a US branch?
- If I open an account in an SF Bay Area branch, can I get a Mainland China UnionPay card? Can I access the money in Mainland China, and will the account be in RMB or USD?
May 6, 2018, 7:46 pm
#2
Join Date: Oct 2014
Posts: 3,097
As I recall, almost precisely the same question was asked here a while ago, and the OP there finally asked at a Chinese bank in the U.S.
The answer was no. If you want to open a Chinese bank account that lets you do the things you can do in China these days with a Chinese bank account, then you have to open the account with a Chinese bank in China.
Be forewarned that it's become more difficult for foreigners without a work permit to open bank accounts in China the past couple of years. Not necessarily impossible, but it might involve a great deal of legwork, since the only way to be sure is to show up at a particular branch and ask.
Note that step one, opening a bank account, will get you a UnionPay card, which you can use to pay at a lot of places in China. With many banks, you can also use a UnionPay QR code to pay with your phone, just like Alipay and Wechat.
If you want to move to step two, linking your card to Wechat or Alipay, this can be relatively simple, or an impossible hassle, depending on the phase of the moon at the time you were born. Which is to say, try, but don't count on getting it to work.
The answer was no. If you want to open a Chinese bank account that lets you do the things you can do in China these days with a Chinese bank account, then you have to open the account with a Chinese bank in China.
Be forewarned that it's become more difficult for foreigners without a work permit to open bank accounts in China the past couple of years. Not necessarily impossible, but it might involve a great deal of legwork, since the only way to be sure is to show up at a particular branch and ask.
Note that step one, opening a bank account, will get you a UnionPay card, which you can use to pay at a lot of places in China. With many banks, you can also use a UnionPay QR code to pay with your phone, just like Alipay and Wechat.
If you want to move to step two, linking your card to Wechat or Alipay, this can be relatively simple, or an impossible hassle, depending on the phase of the moon at the time you were born. Which is to say, try, but don't count on getting it to work.
Last edited by 889; May 6, 2018 at 7:55 pm
May 6, 2018, 9:08 pm
#3
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As I recall, almost precisely the same question was asked here a while ago, and the OP there finally asked at a Chinese bank in the U.S.
The answer was no. If you want to open a Chinese bank account that lets you do the things you can do in China these days with a Chinese bank account, then you have to open the account with a Chinese bank in China.
Be forewarned that it's become more difficult for foreigners without a work permit to open bank accounts in China the past couple of years. Not necessarily impossible, but it might involve a great deal of legwork, since the only way to be sure is to show up at a particular branch and ask.
Note that step one, opening a bank account, will get you a UnionPay card, which you can use to pay at a lot of places in China. With many banks, you can also use a UnionPay QR code to pay with your phone, just like Alipay and Wechat.
If you want to move to step two, linking your card to Wechat or Alipay, this can be relatively simple, or an impossible hassle, depending on the phase of the moon at the time you were born. Which is to say, try, but don't count on getting it to work.
The answer was no. If you want to open a Chinese bank account that lets you do the things you can do in China these days with a Chinese bank account, then you have to open the account with a Chinese bank in China.
Be forewarned that it's become more difficult for foreigners without a work permit to open bank accounts in China the past couple of years. Not necessarily impossible, but it might involve a great deal of legwork, since the only way to be sure is to show up at a particular branch and ask.
Note that step one, opening a bank account, will get you a UnionPay card, which you can use to pay at a lot of places in China. With many banks, you can also use a UnionPay QR code to pay with your phone, just like Alipay and Wechat.
If you want to move to step two, linking your card to Wechat or Alipay, this can be relatively simple, or an impossible hassle, depending on the phase of the moon at the time you were born. Which is to say, try, but don't count on getting it to work.
May 6, 2018, 9:15 pm
#4
Join Date: Oct 2014
Posts: 3,097
That depends on the bank. CMB once asked me for a temporary lodging registration slip from the PSB. A different bank didn't. Who knows what other banks or other branches will want from you. If you do have a registration slip, certainly take it with you. Best to be prepared with whatever they might ask for.
I suspect that if you, or someone with you, speaks Chinese you'll have an easier time, since the bank'll know that it won't face language hassles dealing with you.
I suspect that if you, or someone with you, speaks Chinese you'll have an easier time, since the bank'll know that it won't face language hassles dealing with you.
Last edited by 889; May 6, 2018 at 10:53 pm
May 6, 2018, 9:43 pm
#5
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That depends on the bank. CMB once asked me for a temporary lodging registration slip from the PSB. A different bank didn't. Who knows what other banks or other places will want from you. If you do have a registration slip, certainly take it with you. Best to be prepared with whatever they might ask for.
I suspect that if you, or someone with you, speaks Chinese you'll have an easier time, since the bank'll know that it won't face language hassles dealing with you.
I suspect that if you, or someone with you, speaks Chinese you'll have an easier time, since the bank'll know that it won't face language hassles dealing with you.
May 6, 2018, 10:09 pm
#6
Join Date: Oct 2014
Posts: 3,097
I believe CMB will work if your passport name has more than 20 chars/spaces. Most banks, including I believe CITIC, truncate longer names and won't work with longer names when you try to link on Wechat or Alipay.
I believe UnionPay's QR codes are becoming more widely accepted. Aren't they linking with Wechat?
Point is, once you have an account with most major banks, you can activate the UnionPay QR code right from your bank's mobile app. No need to hassle with Wechat or Alipay getting your identity recognized and your bank account linked. There's some thought that over time, UnionPay will use its dominant position with the banks to ease out Alipay and Wechat Wallet.
(Some banks, at least, will accept a hotel address when you open a new account.)
I believe UnionPay's QR codes are becoming more widely accepted. Aren't they linking with Wechat?
Point is, once you have an account with most major banks, you can activate the UnionPay QR code right from your bank's mobile app. No need to hassle with Wechat or Alipay getting your identity recognized and your bank account linked. There's some thought that over time, UnionPay will use its dominant position with the banks to ease out Alipay and Wechat Wallet.
(Some banks, at least, will accept a hotel address when you open a new account.)
May 7, 2018, 3:47 am
#7
Join Date: Dec 2016
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Posts: 416
I successfully opened a Chinese bank account without residence permit more than 2 years ago with China Construction Bank at a branch in Shenzhen. All I needed was a Chinese phone number and my US passport. After the account was open, I was able to get it linked up with WeChat, after going back to the branch and getting some help about the name on the account. For me it was, last name, first name, middle name all in caps. However, I went back a few months later to add online banking and was told they couldn't change my account. Adding online banking would essentially be making a new account and their requirements had changed and residence permit was required. My existing account was left untouched and still works to this day. If you have a few hours to burn and a translator to help, you can certainly try a few different banks and see if you can get an account.
The other alternative is to get a US issued credit card that works with Union Pay. A quick google search shows ICBC in the US has been offering these -- ICBC Union Pay Cards. However, not sure it will work as expected. There's a long discussion here on flyerTalk.
The other alternative is to get a US issued credit card that works with Union Pay. A quick google search shows ICBC in the US has been offering these -- ICBC Union Pay Cards. However, not sure it will work as expected. There's a long discussion here on flyerTalk.
May 7, 2018, 5:14 am
#8
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Join Date: Dec 2000
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A few more points:
1. Wx and alipay are still musts now. I agree that it makes sense for union pay to attempt to grab some the gravy, I can't envision them making a sizable dent in the near future
2. CMB and Huaxia both have awesome customer service, which is useful if you frequently receive FX wires, but if you don't, your pain is likely limited to the initial sign up visit only
3. Most of my income is in the form of USD via Schwab. As such, I have a strong preference for banks with CDM machines that are close to my house or office (so I can withdraw from Schwab and deposit to my Chinese bank in less than 2 minutes)
1. Wx and alipay are still musts now. I agree that it makes sense for union pay to attempt to grab some the gravy, I can't envision them making a sizable dent in the near future
2. CMB and Huaxia both have awesome customer service, which is useful if you frequently receive FX wires, but if you don't, your pain is likely limited to the initial sign up visit only
3. Most of my income is in the form of USD via Schwab. As such, I have a strong preference for banks with CDM machines that are close to my house or office (so I can withdraw from Schwab and deposit to my Chinese bank in less than 2 minutes)
May 7, 2018, 10:22 am
#9
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A few more points:
1. Wx and alipay are still musts now. I agree that it makes sense for union pay to attempt to grab some the gravy, I can't envision them making a sizable dent in the near future
2. CMB and Huaxia both have awesome customer service, which is useful if you frequently receive FX wires, but if you don't, your pain is likely limited to the initial sign up visit only
3. Most of my income is in the form of USD via Schwab. As such, I have a strong preference for banks with CDM machines that are close to my house or office (so I can withdraw from Schwab and deposit to my Chinese bank in less than 2 minutes)
1. Wx and alipay are still musts now. I agree that it makes sense for union pay to attempt to grab some the gravy, I can't envision them making a sizable dent in the near future
2. CMB and Huaxia both have awesome customer service, which is useful if you frequently receive FX wires, but if you don't, your pain is likely limited to the initial sign up visit only
3. Most of my income is in the form of USD via Schwab. As such, I have a strong preference for banks with CDM machines that are close to my house or office (so I can withdraw from Schwab and deposit to my Chinese bank in less than 2 minutes)
May 7, 2018, 12:38 pm
#10
Join Date: Oct 2014
Posts: 3,097
There's always been a problem with foreign credit cards in China. Places show that VISA logo, yet when it comes time to pay, it turns out the VISA logo is there just to be stylish, or the machine is broken, or they only take "domestic" VISA cards. In part I blame the VISA people for creating the "China-Only" VISA card: a VISA logo in a shop should mean the place takes any card with a matching logo.
That said, I too think restaurants and such are starting to force customers to use QR code payment methods instead of credit cards. No doubt it comes down to money: fees on QR code payments are infinitesimal compared with credit card fees. It's just money down the drain when a customer pulls out a credit card to pay.
But there seem to be new regulations which limit the amount you can spend each day using a QR code, 500 or 1000 RMB depending, I believe. So this may force more places to keep open other payment options.
As to Wechat and Alipay versus UnionPay, I think the Chinese government -- which does like to be in control, doesn't it -- isn't happy that two private companies now control such a large slice of the payments pie. (UnionPay, which is owned by the large banks, effectively operates as a state-owned enterprise.) And the government can use its regulatory power to harness Wechat and Alipay, as it's recently done with those new payment limits.
In any event, for foreigners the point isn't whether UnionPay does or not grab a big share of QR code payments. From a foreigner's standpoint, all that matters is that UnionPay becomes more or less as accepted as Wechat and Alipay, since setting up UnionPay is so simple.
That said, I too think restaurants and such are starting to force customers to use QR code payment methods instead of credit cards. No doubt it comes down to money: fees on QR code payments are infinitesimal compared with credit card fees. It's just money down the drain when a customer pulls out a credit card to pay.
But there seem to be new regulations which limit the amount you can spend each day using a QR code, 500 or 1000 RMB depending, I believe. So this may force more places to keep open other payment options.
As to Wechat and Alipay versus UnionPay, I think the Chinese government -- which does like to be in control, doesn't it -- isn't happy that two private companies now control such a large slice of the payments pie. (UnionPay, which is owned by the large banks, effectively operates as a state-owned enterprise.) And the government can use its regulatory power to harness Wechat and Alipay, as it's recently done with those new payment limits.
In any event, for foreigners the point isn't whether UnionPay does or not grab a big share of QR code payments. From a foreigner's standpoint, all that matters is that UnionPay becomes more or less as accepted as Wechat and Alipay, since setting up UnionPay is so simple.
Last edited by 889; May 7, 2018 at 3:47 pm
May 7, 2018, 10:42 pm
#11
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Join Date: Dec 2000
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I think you might be underestimated the benefits that Tencent offers the government. They know EVERYTHING we say and do on WeChat, who are friends are, and where we travel. For this reason, I try to dissuade even remotely contraversial conversations in our group chat. As the owner, I am personally liable.
Alibaba is a slightly different beast, but their guanxi is also quite strong.
Alibaba is a slightly different beast, but their guanxi is also quite strong.
May 7, 2018, 11:01 pm
#12
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Correctly speaking - the credit card industry does not get advanced as much as anticipated. The reason is mainly due to the fact that income inequality in Mainland China is very high.
Last edited by garykung; May 7, 2018 at 11:08 pm
May 8, 2018, 2:46 am
#13
Join Date: Jun 2010
Posts: 246
There's always been a problem with foreign credit cards in China. Places show that VISA logo, yet when it comes time to pay, it turns out the VISA logo is there just to be stylish, or the machine is broken, or they only take "domestic" VISA cards. In part I blame the VISA people for creating the "China-Only" VISA card: a VISA logo in a shop should mean the place takes any card with a matching logo.
That said, I too think restaurants and such are starting to force customers to use QR code payment methods instead of credit cards. No doubt it comes down to money: fees on QR code payments are infinitesimal compared with credit card fees. It's just money down the drain when a customer pulls out a credit card to pay.
But there seem to be new regulations which limit the amount you can spend each day using a QR code, 500 or 1000 RMB depending, I believe. So this may force more places to keep open other payment options.
As to Wechat and Alipay versus UnionPay, I think the Chinese government -- which does like to be in control, doesn't it -- isn't happy that two private companies now control such a large slice of the payments pie. (UnionPay, which is owned by the large banks, effectively operates as a state-owned enterprise.) And the government can use its regulatory power to harness Wechat and Alipay, as it's recently done with those new payment limits.
In any event, for foreigners the point isn't whether UnionPay does or not grab a big share of QR code payments. From a foreigner's standpoint, all that matters is that UnionPay becomes more or less as accepted as Wechat and Alipay, since setting up UnionPay is so simple.
That said, I too think restaurants and such are starting to force customers to use QR code payment methods instead of credit cards. No doubt it comes down to money: fees on QR code payments are infinitesimal compared with credit card fees. It's just money down the drain when a customer pulls out a credit card to pay.
But there seem to be new regulations which limit the amount you can spend each day using a QR code, 500 or 1000 RMB depending, I believe. So this may force more places to keep open other payment options.
As to Wechat and Alipay versus UnionPay, I think the Chinese government -- which does like to be in control, doesn't it -- isn't happy that two private companies now control such a large slice of the payments pie. (UnionPay, which is owned by the large banks, effectively operates as a state-owned enterprise.) And the government can use its regulatory power to harness Wechat and Alipay, as it's recently done with those new payment limits.
In any event, for foreigners the point isn't whether UnionPay does or not grab a big share of QR code payments. From a foreigner's standpoint, all that matters is that UnionPay becomes more or less as accepted as Wechat and Alipay, since setting up UnionPay is so simple.
May 10, 2018, 12:52 am
#14
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Well I definitely need to get a Chinese bank account so I can use Alipay and Wechat Pay. I've had all of my cards rejected by at least 6-7 merchants so far, including the Defachang restaurant in Xi'an, which is apparently a tourist trap. They take UnionPay only, but Discover didn't work there. Absolutely ridiculous.
May 10, 2018, 4:41 am
#15
Join Date: Feb 2013
Location: China and Canada
Posts: 1,886
Well I definitely need to get a Chinese bank account so I can use Alipay and Wechat Pay. I've had all of my cards rejected by at least 6-7 merchants so far, including the Defachang restaurant in Xi'an, which is apparently a tourist trap. They take UnionPay only, but Discover didn't work there. Absolutely ridiculous.