Do I still need cash or credit cards in China?
Even though mobile payments are highly prevalent, foreign tourists still need to carry cash and credit cards when traveling in China. This article analyzes the usage scenarios for different payment methods and the best strategy.
7.3 Do I still need cash or credit cards in China?
After doing your homework on mobile payments for your China trip and successfully linking Alipay and WeChat Pay, a very practical question will arise: Since mobile payments are so omnipotent, do those traditional plastic cards and paper bills in my wallet still have a reason to exist?
The answer is yes. Although more than 95% of your daily transactions will be completed by scanning codes on your phone, leaving physical credit cards and cash completely behind would be an unwise decision. In China's highly digitized payment environment, the role of credit cards and cash has evolved – they are no longer the main actors, but indispensable "best supporting actors" and "ultimate safety nets" in your travel experience. This guide will analyze in depth when and why you still need them.
Physical credit cards: "Specialized tools" for large payments and specific scenarios
First, let's talk about your international credit cards, such as Visa or Mastercard. You need to understand that their usage scenarios are relatively focused, mainly in large commercial institutions that are highly aligned with international standards.
When is it their home turf?
- Hotel check-in and deposits: This is the core use of credit cards. When you check into a star-rated hotel or international chain hotel, the front desk will almost certainly require you to use a credit card for pre-authorization to freeze a deposit. This is a standard procedure worldwide, and mobile payments usually cannot replace this function.
- High-end shopping malls and brand stores: In large shopping malls, outlets and international luxury brand stores in first-tier cities, POS machine support for international cards is usually very complete. When you make a single large purchase, swiping your card directly is a convenient and safe choice.
- Airport duty-free shops and international restaurants: Airports, high-end Western restaurants, and some venues mainly catering to foreign tourists can usually smoothly accept your international credit cards.
Why can't you rely on it completely?
In China's vast daily consumer market, especially in restaurants, convenience stores, taxis, metro ticket sales, attraction ticket windows and small shops frequented by locals, POS machines are mostly connected to the UnionPay network and may not recognize Visa or Mastercard. Therefore, trying to use it to pay for a bowl of noodles or a bottle of drink will most likely result in the embarrassment of being unable to complete the transaction.
Expert recommendations:
- Position physical credit cards as "large-amount, low-frequency" payment tools.
- Before traveling, be sure to notify your card-issuing bank of your travel plans to avoid transactions being mistakenly flagged as fraud and rejected.
- Carry one or two credit cards from different banks in case one has problems.
Cash (RMB): The indispensable "ultimate payment solution"
Now, let's talk about cash – the Renminbi (RMB/CNY). In a country where QR codes are everywhere, talking about cash may seem outdated, but this is precisely where you demonstrate your wisdom as a seasoned traveler. Cash is the ultimate safeguard against all contingencies.
Why is cash crucial?
- Legal guarantee: RMB is China's only legal tender, and merchants and individuals cannot refuse it. As long as you take out RMB, the transaction can definitely be completed.
- Dealing with technical failures: Dead phone battery, poor network, app malfunction or risk control verification can all cause digital payments to fail. In these "digital failure" moments, cash is the only solution.
- "Optimal solution" for specific scenarios:
- Taxis: Some drivers still prefer cash, especially older drivers.
- Small vendors and traditional markets: In vegetable markets, night markets or antique markets, cash transactions are still common.
- Expressing gratitude: Although China doesn't have a tipping culture, if you want to express extra thanks to a guide or driver, cash is more appropriate than a transfer.
How to obtain and carry cash?
- Upon arrival at the airport, you can withdraw RMB directly through currency exchange counters or ATMs that support international cards. Banks and ATMs in the city are also very common.
- Recommended exchange amount:
- Landing "startup funds": Immediately withdraw 500 to 1,000 RMB after arriving at the airport for taxis, SIM cards and your first meal.
- Daily reserve: Keep 300 to 500 RMB, preferably in small denominations (10, 20, 50 yuan), for easy change.
Summary: Build your multi-layered payment strategy
When traveling in China, the wisest payment strategy is a multi-layered structure:
- Daily mainstay: Mobile payments (Alipay / WeChat Pay / UnionPay), covering 95% of daily consumption.
- Important backup: International credit cards for hotel pre-authorization and large purchases.
- Solid foundation: Appropriate amount of RMB cash as the ultimate safeguard for dealing with failures and special scenarios.
With this planning, you'll be able to confidently and calmly handle various payment scenarios in China and truly enjoy a barrier-free in-depth journey.