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Week Around the Ists
BoingBoing recently had a post that we're sure many Shanghaiist readers can relate to. It's entitled "Ripoff: Visa/Mastercard's 'Foreign transaction fee'":
I just got off the phone with Citibank after noticing a bunch of "Foreign Transaction Fees" on my bank statement -- turns out that when you use your credit or debit card outside of the US, Visa and Mastercard charge three percent in transaction fees on the spend. It doesn't matter if you use an ATM, buy over the Internet/phone, or walk into a store -- the credit-card companies always dip their beaks. When you pay your hotel bill, when you buy a plane ticket, every time you use Amazon.uk to order a British release (Citibank told me that they even charge the fee when I withdraw from my Citibank US account while at a Citibank UK ATM, using Citibank's own network!).What makes this such a rip-off is that the credit-card companies already charge a fee -- up to five percent! -- to the merchants for processing the transaction. So Mastercard and Visa are getting a slice from the store, and a slice from the customer. In a global marketplace, Mastercard and Visa are acting like letting you spend your own money is a special service deserving its own fee.
The Citibank rep I spoke to told me that the fee used to be one percent, and that it was hidden on the credit-card bills, but that in 2006, the fees tripled and Citi started to break them out on the bill so you could see how badly you're getting hosed.
The comments, one of which comes from the "frugal traveler" himself, are worth reading, as well. Hopefully these international fees don't come as a surprise to you, but if you are in doubt about your bank's policy, read the fine print on your bank statements — some charge ridiculous fees, including as much as $5 per ATM withdrawal — and know that you have options. The American credit union we belong to doesn't have international transaction fees. In fact they deposit money into our account each month just to cover ATM fees banks might charge us. And, as one BoingBoing commenter pointed out, this doesn't appear to be a Visa/Mastercard issue per se, as the fees vary greatly from bank to bank.
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it's not surprising at all. That's why I always use AMEX instead of Visa/Master in China. Not because AMEX does not charge a fee but the rate is lower (not substantially lower). To use a MAC machine in China will be a rip off. However, my experience using American bank check card in Europe was not as bad. According to the latest episode of Rick Steve's podcast, to withdraw money in Europe using bank card is the same as using the "foreign currency exchange" service at the airport.
C'mon, if you live, eat and work in China, get a Bank Of China account and get your money transfered there. They have great service and speak perfect english. Just never forget to bring your passport, that's it...
Well you should just have a HSBC account in your own country...and then no fees when withdrawing in their ATMs worldwide (it may depend on which country u have ur hsbc account). Living in downtown Shanghai i run in HSBC ATM/branch the whole day, so its convenient. And there is one next to where i live. Then of course if u live a bit far...It hasn't prevented me from paying fees when paying with it, but at least i have saved a looooooot on cash withdrawal.
Using the foreign bank is definately the way to go - Citibank is another good one if you're from the US, since there isn't much of a retail HSBC branch network in the US.
You can then put that periodically put that pile of RMB you withdraw from the foreign bank into an account with ICBC or another of the big 4 chinese banks, and use that local bank card for hitting the atm.
There are still some fees involved, but its much cheaper and fairly convenient, despite the monthly trips to switch cash between accounts.
Visa - it's everywhere you want to be (for a fee)
I have a Bank of America US account, I used to get away with no fees at all when they had a Bank of America branch on Nanjing Road and Shimen Road. Then BOA closed and the spot was replaced by a Chinese bank. No I am screwed with nearly $8 fee for withdrawing 2000 RMB each time from my BOA account when I have too. Next trip back to US I am going to look at alternative banking, this plug the credit card fee hikes is getting crazy.
Hey Ryan, I also have a BofA account and had to call them recently. They told me that they have global alliances with various banks throughout the world and the one to use in China without being charged is the China Construction Bank.
Yes, I recently opened a BoA account in the US and they told me I can take money out from any China Construction Bank ATM for no fee at all. Very useful!