Can I use my credit card in China?

If you’re planning a visit to China, you may be wondering whether you can use your credit card for things like accommodations, meals and activities.

Generally, most American credit cards are accepted in the big cities of China. But there are some things it might help to know before you set off.

What you’ll learn:

• Credit cards are accepted in China at most major hotels and restaurants in big cities.

• Mobile payment apps like WeChat Pay and Alipay are the most common payment methods in China. But there could be security concerns.

• Using credit cards while traveling internationally can provide security, convenience, travel protections and more. 

• Some credit card issuers charge foreign transaction fees for transactions made overseas. Capital One doesn’t. View important rates and disclosures.

Foreign credit cards are generally accepted in the big hotels, restaurants and stores of the more popular tourist locations. Outside of mainland China and cities like Beijing and Shanghai, they may be less commonly accepted.

The most common form of payment in China is via mobile payment apps like Alipay and WeChat Pay. Mobile payment is so common that many locals no longer use cash or physical cards at all. Users download an app, create an account and link their credit card to it. Then at checkout, they scan a QR code to pay. You’ll see QR codes for mobile payment practically everywhere in China, even in taxis and at street-vendor stalls.

Visitors are able to link their foreign credit cards to these platforms. But it’s worth researching ongoing security concerns and U.S. bans on some Chinese apps before doing anything.

You’ll likely want to bring both your credit card and some Chinese yuan (CNY) to China, just in case. Businesses and individuals aren’t allowed to refuse cash. And in some rural areas, cash may be necessary. 

It can help to check ahead of time which form of payment would be best for your plans. You could contact your hotel and ask whether there’s anything in particular you should know about the area you’re staying in. You could also consult with a travel agent or look online for other travelers’ experiences.

Using a credit card in China could offer these benefits:

• Convenience: By using a credit card, you can avoid the hassle of currency conversion. And if your card issuer has an app, like the Capital One Mobile app, it’s easier to keep track of your spending while you’re away.

• Security features: Cash can’t be replaced if stolen, but your credit cards can. Your credit account may also give you access to security features that can help protect against fraud. For example, Capital One offers $0 liability for unauthorized charges and the ability to lock your card to prevent others from using it.

• Credit card rewards: If your card is a rewards credit card, you can continue to earn rewards with every qualifying purchase you make in China.

• Travel-related perks: Certain credit cards may offer travel-related protections. Eligible Capital One cardholders get travel protections like lost luggage reimbursement and perks like complimentary access to airport lounges and a statement credit for TSA PreCheck® or Global Entry enrollment. 

• Favorable exchange rates: Paying with a major credit card typically gives you a better currency exchange rate than if you exchange your cash for local currency.

To get the most from your card, you can read up on your card’s benefits before traveling.

Here are a couple of things to keep in mind about paying with your credit card in China:

If you decide to use a Chinese mobile payment app, you can look out for things like:

• Security concerns: It may help to do some research on the security issues surrounding apps like WeChat Pay and Alipay.

• Spending limits: There may be limits on how much you can spend per transaction or per month.

• Fees: There may be a transaction fee for purchases over a certain limit.

• Account setup time: The identity verification process could take time and require you to know existing users.

With some credit cards, fees may be added when you make transactions abroad with foreign merchants: 

• A foreign transaction fee is a surcharge some card issuers add to credit card purchases made outside of the U.S. These fees usually range from about 1% to 3% of the transaction cost.

• A currency conversion fee is charged by the credit or debit card payment network or ATM network for converting the foreign currency to your home currency. This has to happen so that the card issuer can process it and charge it to your account. Visa and Mastercard charge a 1% currency conversion fee to card issuers, which some issuers pass on to customers.

Capital One doesn’t charge foreign transaction fees. And it doesn’t pass on currency conversion fees. View important rates and disclosures. Other issuers might.

Something else to watch out for is dynamic currency conversion. This optional service converts the price in yuan to dollars right at the point of purchase. It’s convenient, but it typically costs more than any standard exchange rate your credit card issuer might charge.

Most credit card issuers have advanced fraud detection technology that no longer requires you to inform them when you travel. But others still recommend setting up a travel notice when you’re leaving the country. That’s so they know you’re abroad and don’t flag your card for potential fraud. If you’re unsure of your issuer’s preference, it may be a good idea to check with them. 

Capital One doesn’t require travel notification.

As you plan for a trip to China, be sure to consider how you’ll pay for things during your stay. Credit cards are accepted at most major hotels, restaurants and shops in big cities and the most-visited parts of the country. China is moving toward becoming cashless, and mobile payments dominate. And it’s always useful to have some cash with you too.

Before you embark on your trip, consider if a travel credit card from Capital One might be a good choice for you. Plus, to help you get the most from your card, you can check out these tips for using a credit card internationally.