Can I use a credit card in China?

Quick insights

• Credit cards are widely accepted in China, especially in major cities and tourist-friendly areas.
• Many Chinese locals choose mobile payments over cash or credit cards.
• There are fees you may be charged when using credit cards abroad, such as foreign transaction fees, though there are ways to avoid them depending on which card you have. Refer to your credit card’s account terms for specific information.

China is a vast and diverse country. From the bustling metropolises of Beijing and Shanghai to the serene countryside with views of the Great Wall, there is a lot for travelers to see and experience.

Travelers may be eager to soak up the sights, sounds and flavors of Asia's largest country, and doing so may require using credit cards. In this article, we’ll discuss how to use credit cards in China and some alternative ways to pay when traveling throughout the country.

Using credit cards in China

Paying with credit cards is common in China, with most major cards being accepted especially in large cities and tourist-friendly areas. Merchants typically accept Visa, Mastercard and American Express.

The majority of credit card issuers—including Chase—no longer require notice when traveling. This practice is considered outdated due to advancements in fraud detection technology, so you may want to check your cardmember agreement to determine if they require a heads up.

When shopping in local establishments or at small vendors in Chinese markets, cash may come in handy—and may even be preferred. Cash is still widely accepted and may be a more reliable payment option when traveling to remote parts of China. Having multiple forms of payment, including Chinese yuan, may help provide a smoother paying experience.  

Mobile payments in China

One popular alternative to credit cards in China is mobile payments. China has been a leader in the adoption and usage of mobile payments, with this form of payment typically more common with locals than cash or credit cards. You may find many Chinese merchants who accept mobile payments.

The two most common options are Alipay and WeChat Pay. Users can link their credit cards and debit cards to these mobile payment platforms. However, tourists who are visiting and considering using this payment type may want to download and set up mobile payments prior to their arrival in China.

Benefits of using credit cards in China

There are some benefits to using credit cards, including:

• Ease of use: It is often simpler to swipe a card than it is to count cash at a register, especially in a currency you’re not used to.
• Safety: Cash can get lost or stolen. Whereas if your card is lost or stolen, you can lock your credit card and monitor its usage.
• Rewards: Using your card abroad may earn points or miles, depending on the card. If using a travel credit card, you may earn higher rewards for travel-related purchases.
• Card benefits: Using your card to make purchases may also provide additional benefits, such as travel insurance or fraud protection.

While most major credit cards are accepted in China, payment acceptance is up to the merchant. For this reason, you may want to consider having cash to fall back on even if you plan to mostly use your credit card while abroad.

Understanding credit card fees while traveling

Getting local currency or electronically converting your U.S. dollars to yuan may incur fees. Some of these fees include foreign transaction fees, currency conversion fees, dynamic currency conversion (DCC) fees and ATM fees:

Foreign transaction fees

You can be charged foreign transaction fees when using your credit or debit card to make purchases in a foreign currency. These fees can vary depending on your credit issuer, bank and the purchase amount. The rate for foreign transaction fees is typically 1-3% of the entire purchase, which might include shipping costs and taxes.

However, some credit cards do not charge foreign transaction fees, so you may be able to avoid them altogether. Check your cardmember agreement for details on international purchases. If you travel often, it may be worth looking into a travel rewards credit card that doesn’t charge these fees.  

Currency conversion fees

When you exchange one currency for another, you may be charged a currency conversion fee. They can occur when you make purchases abroad using a credit or debit card, withdraw cash from an ATM in a foreign country or exchange currency at a bank or currency exchange service. The amount can vary, but these fees are typically 1-3% of the transaction amount.

Dynamic Currency Conversion (DCC) fees

Merchants typically use a DCC service that allows a transaction to be processed in the cardmember’s home currency. The customer pays fees for this service when making a purchase and often receives an unfavorable exchange rate.

You may be able to avoid DCC fees when using a credit card. Paying in the local currency means you won’t be charged DCC fees. Sometimes the merchant can select the currency before handing you the payment terminal, or you may need to select it yourself.

When you pay in yuan, you’ll still be subject to the fees and exchange rates associated with your credit card, but in many cases, those terms are more favorable than what DCC services charge. 

ATM fees

You may be charged fees when withdrawing cash from ATMs. Often, the ATM operator charges a fee as well as your local bank. These fees are typically two-fold and include a flat fee (typically a couple of dollars) as well as a percentage based on the amount you withdraw.

When exchanging dollars for yuan, you may find better rates if you plan ahead. Often, using a currency exchange at the airport or in a hotel will not provide the best exchange rates. You may find lower rates when exchanging money at your local bank or credit union.

In summary

Using a credit card is a common way to pay in China—especially when making a larger purchase or if paying for things in big cities and tourist-friendly areas. If you’re shopping at local markets or travel to remote regions, cash may be preferred. When using your credit card abroad, there are fees you may be charged, such as foreign transaction fees, though there are ways to avoid them depending on which card you have. Refer to your credit card’s account terms for specific information.

Chinese locals often use mobile payments which you can set up and link to your credit and debit accounts prior to traveling. Having a mix of payment types—including cash and credit cards—may provide the most seamless paying experience when you’re traveling in and around China.