Thats really really an over simplistic answer. First there are no real international banks that have transparent banking with the USA. There isnt a Bank you can open an account in the USA that would have a Branch in beijing that you could walk into, depositt RMB and then use Bill pay or a debit card. Lots of people have tried and they either end up costing more in time and or money then just sending a wire to begin with.
BOA use to have a branch in HK that you could do that, but it was really just an internal wire. HSBC clims you can do it, but again its just an internal wire (with reduced costs) but you have to have all kinds of premium accounts and fees that would cost the same as a regular wire would, plus HSBC isnt as common in the States. Chase has a similar set up but you have to have a brokerage account and commercial checking account. You can deposit cash in China into your brokerage account, in escrow and then request a dispersion of funds and have those funds credited to your checking account, but its a convoluted process.
Basically there are three ways to send money back to the states:
1) Wire Transfer
2) Transfer Services
3) Mail
A wire transfer is a bank to bank transfer of funds. Their are two types tele-fax and electronic. With a telefax wire The initiating bank (in china) calls the wire/international banking office for your bank in the USA with your banking info, and then follows up with a fax of the transaction. Basically its a contract between the banks to move the money from one bak to another. Its the oldest type of wire transfer there is and can be really slow (5 days to a month), depending on the relationship and reputation of the bank, you may get the money credited to your account before it "settles". An electronic transfer uses (in the USA) the ACH (Automated Clearing House, which is the retail component of CHIPS and FEDWIRE. FEDWIRE services government securities and the Federal reserve. CHIPS services commercial corporations and non government commercial paper. They dont really matter as locally its the ACH your bank deals with. The ACH is the same entity that handles your checks. So when you write a check it gets turned into an electronic transaction, its the ACH that handles that) and a similar processor in the foreign country.
In China there are three processors EIS (Electronic Interbank System), EFT (Electronic Funds Transfer System) and LCH (Local Clearing House). EIS and LCH are owned by People's Bank of China (which is "THE" big bank owned by the Chinese government). EFT is owned by the smaller (still chinese government owned) commercial banks: Industrial and Commercial Bank of China, Agricultural Bank of China, Construction Bank of China, and Bank of China. All those dont really matter because at the retail point they all use CNAPS (China’s National Advanced Payment System).
So in an electronic wire the banks talk to their clearinghouses and the clearing houses talk to each other. The important thing for you to know in an electronic wire is where and when is the "settlement" day/time. The settlement day time determines the exchange rate, and the where determines whos exchange. That is going to determine how much money goes into your account.
Wire transfers have the benefit of reliability, security and accessibility (because the money ends up in your account which is a place you can then do something with it). The draw back though is cost (they are typically the most expensive) since you get charged by the sending bank and receiving bank. A wire transfer can cost between $20 and $50 when all the fees are paid. They also arent convenient. Since you have to go to the bank during business hours, and will also need to go during the time the foreign account representative is there. Since you will want someone who 1) speaks english 2) Knows how and can access the wire services for that bank branch. It might shock you that you can only do that at certain times of the day or week.
2) Transfer Services you know these already. Western Union, Money Gram, and PayPal. Instead of using banks directly these companies have their own network of offices and agents across the globe. You can walk into a 7-11 (yes lots of these are in china) in Beijing that acts as an agent for Western union and "send" the money to a grocery store in Florida whos a western union agent (In China Walmart/Trustmart is becoming popular for this). Costs are usually cheaper ranging as low as $7 to about $25, with the average around $15. The benefits are that its FAST, usually within 10 minutes to an hour the money is available. Its also cheaper per transaction. The disadvantages are that 1) Someone like a family member or trusted friend has to pick up the money (meaning going there, waiting in line, and then taking it to your bank and depositing it in your account). 2) The daily/transaction limits are small, usually between $300 and $1000 per transfer. Meaning if you have to have 2,500 every month to pay your mortgage and student loans. That means someone has to make 3 trips on 3 different days to pick up the money an deposit it in your account.
3) Bank by mail. Many banks in the USA including smaller state banks, credit unions and online banks offer this method though no one uses it very often. Basically, you go to your bank (or post office) in beijing and get an official check (or bank draft) put it in an envelope and mail it to your banks "Bank by Mail Address". The bank gets the check and then you wait for the check to clear, and the money is credited to your account. The benefits are that its cheap, and doesnt require someone in the states to act as your liaison. This can be the cheapest way as a bank draft cost about $1 and international postage is about $.50. The problems are that its VERY slow. First class international mail can take a month or longer to arrive. You can send it EMS or DHL if you want it to get there faster but its much more expensive (between $15-$30) and its also far less secure. Mail with money in it tends to get lost, and getting the money refunded from the chinese bank can take a long time. You also have to wait for the check to clear, which can take 10-30 days. (In all fairness I have to say Ive known people to do the bank by mail approach using cash (USD), though I wouldnt recommend it).
So basically it depends what your needs are. My advice is:
Your better off dealing with the People's Bank of China in Beijing as they just have a better work flow and relationship, with USA banks. Likewise your better off with a bigger bank in the USA (Chase, BOA, Wells Fargo, etc) then a state run bank or credit union. You want banks (USA and China) that have
1)an English speaking customer service number and preferably an international banking department. English PC/Online banking is a nice plus (in China).
2) An IBAN (International Bank Account Number) which may be different then the ABA (American Banking Association) account number, (which you see more off with smaller state banks and credit unions then the large national banks).
3) a SWIFT code. Which is used by the various clearing houses to identify various banks. This is in addition to your banks "routing number" used in the Federal Reserve American Banking System.
4) A compatible PIN number. ATM machines in China typically use 6 digit pins. Foreign machines (most of them with Peoples Bank of China) will accept 4 digit pins. Some will accept two zeros and then your 4 digit PIN. Some wont accept PINS that start with 0. You also want an ATM debit card that uses as many processors as possible, most ATMs accept Plus, Cirrus & Masestro, which are common to all the big USA banks.
5) Most people do a lot of their banking by ATM. As a foreigner the only time your likely to go into the bank to see a teller is to 1) convert currency, 2) cash travelers checks, and 3) Wire money. China is a pretty large cashed base society, and while you an use your ATM card at some stores (such as Watsons, Ren Ren Lu, Trust mart, most people use cash). You may qualify for a credit card, depends on your school and how much money you make. It will either have a low credit limit, or else you typically have to wait a year before you can apply.
6) Exchange Rates: remember when i was discussing the settlement date? You basically want to find out how soon and where the banks settle their wires. The sooner the settlement date to the transaction date the better, as the exchange rate is less likely to vary as much. Chase settles in Germany, BOA in New York. Of course you should also shop around for the lowest account fees and transfer/transaction fees.
money and banking abroad
I would like to add that you should set up an incoming account in the states, it doesn't have to be one of the international brands. In fact I dropped my international brand and kept the smaller bank because I was getting better service.
Your school might help you out in moving money home. Our school will wire your cheque or a portion of it home for a fee. Yes, over time its expensive but its safe and convenient. A group of teachers also bulk couriers cheques to a US address from which they are mailed but while dependable I wanted the sure thing of the wire and am willing to pay for it.
Using credit cards in China can be expensive because in many cases the costs are downloaded on to you, typically 3-4% of the purchase price. Cash is king here, even though the largest, most used note is the 100 RMB. Your school may help you obtain a UnionPay card, which is a Chinese debit card and your paycheques might be deposited right into your account where you access them using the debit card. The UnionPay card is accepted in many SE Asian countries and can make traveling easier.
What you don't want to do is accumulate vast amounts of RMB in your chinese account prior to leaving for good. While you will eventually be able to access and leave with it all, it won't be without some headaches.
Banking in China can be a slow, burdensome and paperwork consuming process. I would try to avoid them at all times if possible.
Your school might help you out in moving money home. Our school will wire your cheque or a portion of it home for a fee. Yes, over time its expensive but its safe and convenient. A group of teachers also bulk couriers cheques to a US address from which they are mailed but while dependable I wanted the sure thing of the wire and am willing to pay for it.
Using credit cards in China can be expensive because in many cases the costs are downloaded on to you, typically 3-4% of the purchase price. Cash is king here, even though the largest, most used note is the 100 RMB. Your school may help you obtain a UnionPay card, which is a Chinese debit card and your paycheques might be deposited right into your account where you access them using the debit card. The UnionPay card is accepted in many SE Asian countries and can make traveling easier.
What you don't want to do is accumulate vast amounts of RMB in your chinese account prior to leaving for good. While you will eventually be able to access and leave with it all, it won't be without some headaches.
Banking in China can be a slow, burdensome and paperwork consuming process. I would try to avoid them at all times if possible.
Overhere is right when he said cash is king. Make use of the black market changers and get wads of cash at better exchange rates. You can find one in any major branch of the banks in tourist and shopping areas. They have foreign currency accounts at the bank, so whatever you need, they withdraw from their account so the money is the real stuff. Better than getting it from the bank.
It depends on how often you go back and how comfortable you are with cash. Nobody will rob you in China. Nobody will know about your cash when you get home. Just get someone to pick you up to reduce the risk if you want.
Bank of china has lots of paperwork which is annoying. Agricultural bank is easier. Easiest is to get a local to send it on your behalf. You will find that banks are accommodating to 'dodgy' dealings since it allows them to conduct normal business and avoid paperwork.
It depends on how often you go back and how comfortable you are with cash. Nobody will rob you in China. Nobody will know about your cash when you get home. Just get someone to pick you up to reduce the risk if you want.
Bank of china has lots of paperwork which is annoying. Agricultural bank is easier. Easiest is to get a local to send it on your behalf. You will find that banks are accommodating to 'dodgy' dealings since it allows them to conduct normal business and avoid paperwork.
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wrldtrvlr123
- Posts: 1173
- Joined: Sat Feb 06, 2010 10:59 am
- Location: Japan
I've never used a black market money changer, and don't know anyone who has. It would make me nervous, but I'm sure it can be done if you have the right connections. We've also been lucky in that school arranges the transfers for a fee.
Some people have also worked out a system where they get two debit cards and send one to a family member back in the states.
That person then uses the card to withdraw $ from their RMB account and deposits it into their US bank account. You lose some in fees I'm sure, but you will with any transfer process.
The nice thing is that Chinese banks allow you to withdraw up to 10,000 RMB worth of whatever currency you are withdrawing. We haven't done this in the US but have successfully used ATMs in Thailand, Italy, France and the UK to get money out of our RMB account.
Some people have also worked out a system where they get two debit cards and send one to a family member back in the states.
That person then uses the card to withdraw $ from their RMB account and deposits it into their US bank account. You lose some in fees I'm sure, but you will with any transfer process.
The nice thing is that Chinese banks allow you to withdraw up to 10,000 RMB worth of whatever currency you are withdrawing. We haven't done this in the US but have successfully used ATMs in Thailand, Italy, France and the UK to get money out of our RMB account.
Cool Idea
I know people who tried the double ATM card idea but the card services people for Bank of China shut down the card after seeing withdrawals in both countries. They tried to explain to them what was going on and that it was OK, but after that they could only get one ATM card. If you do get it to work, then it really would be a great idea.
My Bank of China ATM card is Cirrus and Maestro.
When you open your account make sure you get an ATM card that is world or global use, many of the ones they issue are mainly for chinese locals and say "for use in china only".
My Bank of China ATM card is Cirrus and Maestro.
When you open your account make sure you get an ATM card that is world or global use, many of the ones they issue are mainly for chinese locals and say "for use in china only".
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wrldtrvlr123
- Posts: 1173
- Joined: Sat Feb 06, 2010 10:59 am
- Location: Japan
[quote="krdking"]Wow! Great information! Thanks so much! So many options to consider, it's a little mind-boggling. I'm grateful to have a basic direction.
wrldttrvlr, What network is your ATM? (Cirrus, PLUS, etc...)[/quote]
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All Chinese debit cards are on the China Union Pay system which has agreements with many countries and banks. You can look on their website to see who their agreement is with where you are at. They that 90% of ATMs in the US accept Union Pay cards.
http://en.unionpay.com/englobalization/ ... index.html
wrldttrvlr, What network is your ATM? (Cirrus, PLUS, etc...)[/quote]
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All Chinese debit cards are on the China Union Pay system which has agreements with many countries and banks. You can look on their website to see who their agreement is with where you are at. They that 90% of ATMs in the US accept Union Pay cards.
http://en.unionpay.com/englobalization/ ... index.html
WiseTeach, it's actually pretty easy to have nearly everything financial done online. You need to start now setting up automatic drafts of recurrent bills from your bank account as it can take a billing cycle or two to become active; doing all this now gives you time to correct mistakes.
I have two main accounts--one at a credit union and one at a brokerage. Some smaller bills like utilities for my house come out of the credit union account. Bigger-ticket items like mortgage payment, rental car payment, credit card payment come out of the brokerage account. I can pay my property taxes online. A relative writes checks and sends cards for things that pop up like birthdays.
Keep handy the routing and account numbers of your accounts for occasional wire transfers (the account number on your check is a little different from the one on your statement). Find someone at your bank you can turn to for assistance if necessary. I also recommend you have someone appointed as your Financial Power of Attorney and leave them a checkbook or credit card.
I have two main accounts--one at a credit union and one at a brokerage. Some smaller bills like utilities for my house come out of the credit union account. Bigger-ticket items like mortgage payment, rental car payment, credit card payment come out of the brokerage account. I can pay my property taxes online. A relative writes checks and sends cards for things that pop up like birthdays.
Keep handy the routing and account numbers of your accounts for occasional wire transfers (the account number on your check is a little different from the one on your statement). Find someone at your bank you can turn to for assistance if necessary. I also recommend you have someone appointed as your Financial Power of Attorney and leave them a checkbook or credit card.
Any school that I have worked for have always either taken a group of new teachers to the bank to set up accounts, or have a bank representative come to the school. I can't imagine that the school will have you do it alone.
For me, the easiest way to send money out of China was sending one ATM card to a family member back home, and I never had a problem. I had tried using Western Union at first but that was just waaaaaaaay too expensive and more hassle than you'd expect. The only problem I had with sending the card home was that it seemed really difficult to get a card with visa or mastercard. It was always Unionpay, and a few years ago it seemed that there weren't so many machines around outside China that would accept it. I might be different now.
Hope this helps, and enjoy your China experience.
For me, the easiest way to send money out of China was sending one ATM card to a family member back home, and I never had a problem. I had tried using Western Union at first but that was just waaaaaaaay too expensive and more hassle than you'd expect. The only problem I had with sending the card home was that it seemed really difficult to get a card with visa or mastercard. It was always Unionpay, and a few years ago it seemed that there weren't so many machines around outside China that would accept it. I might be different now.
Hope this helps, and enjoy your China experience.