Remittance of Yuan without fees

If you want to transfer money to China and are looking for a service that offers the lowest fees, this article will guide you on what to watch out for, which services charge the least, and which services you should generally avoid. However, always check the Asan Tejarat website before transferring money, as this site offers the most cost-effective and reliable services for Yuan remittances with no fees. This article will help you understand which methods are the most affordable for international money transfers.

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Things to Consider When Sending Money to China

Before sending money to China, there are three important factors to consider, which are:

  1. Transfer Fees
  2. Exchange Rates
  3. Transfer Speed

Let’s take a closer look at each of these.

Transfer Fees

Generally, when sending money from your bank account to a bank account in China, you will pay one of three types of fees:

  • Flat Fees
  • Percentage Fees
  • Combined Fees

Flat Fees

One of the fees you may encounter when sending money to China is a flat fee, which is the same regardless of how much money you send. For example, Wells Fargo charges a flat fee of $18 (plus currency exchange fees) regardless of whether you send $1,000 or $10,000 to China. This makes bank transfers a cost-effective option for sending large amounts of money to China.

Percentage Fees

Unlike flat fees, percentage-based fees increase based on the amount of money you’re sending. For example, when transferring $1,000 using Wise, the fee is 1.26%, or $12.60. Since the fee is based on the total amount you send, you can see how percentage fees can become costly when sending large sums of money.

Combined Fees

Finally, combined fees are a mix of flat and percentage fees. PayPal’s Xoom uses this fee structure, which is why it is considered one of the more expensive money transfer services. However, keep in mind that high fees aren’t the only thing you should check; you also need to consider the exchange rate to ensure you get the most CNY (Chinese Yuan) for your money.

Exchange Rates

Except for Wise, it is unusual for banks and online money transfer providers to offer you average market exchange rates. Therefore, check if the rate they offer is close to the market average found on XE. Along with transfer fees and exchange rates, considering transfer speed is also important, which is the next factor we discuss.

Transfer Speed

We have discussed this section in detail in our article on Instant Yuan Transfers. If the speed of your transfer to China is a priority, this article can be helpful for you.

The Most Cost-Effective Way to Transfer Yuan to China

Whether you are a traveler in need of money, planning to use funds stored abroad for purchases in China, or sending money to China for imports, understanding the most cost-effective and fastest methods for transferring money is essential. Below, we review fast and affordable options for transferring Yuan to China.

Using Cash

Without a doubt, you should always have a small amount of cash on hand. However, the question is, how much cash can you bring into China? According to the Chinese Customs Department, travelers can carry up to 20,000 yuan in cash or the equivalent of $5,000 USD in foreign currency without declaration. Anything exceeding these amounts must be declared to customs.

Using Traveler’s Checks

A reliable but somewhat outdated option is traveler’s checks. For several decades, this method was the preferred choice for international travelers. There are no restrictions on carrying traveler’s checks since they are not considered currency, but they are not as popular as they once were. Nowadays, finding places to spend traveler’s checks is difficult, and cashing them can also be a challenge. While your main bank may not charge you a fee, your Chinese bank will likely charge a small fee (around $15 USD). Moreover, the process of cashing a traveler’s check can take between 30 and 60 days.

Recommendation: If you can plan ahead and have no time constraints, writing a check for yourself might not be a bad option.

ATMs in China

The previous two methods are not very efficient. Exchange rates at airports are terrible, and trying to find a fair solution at a bank can take half of your day. For cash withdrawals, you can use ATMs in China. Most ATMs throughout China accept Visa, MasterCard, UnionPay, Diner’s Club, and others. Using ATMs in China is very convenient, which is why many people prefer this method. However, there are two distinct disadvantages:

  1. Withdrawal Limits
    There is a withdrawal limit of around 2,000 to 3,000 RMB per day. Interestingly, this limit is often imposed by your home bank, not the Chinese ATM (you can withdraw multiple times from the same ATM). One way to overcome this is by using multiple accounts, or if you are traveling with your spouse, you can use their bank card to withdraw from two accounts in one day.
  2. Bank Fees
    Few banks do not charge ATM fees, so expect a fee of between $5 to $10 USD each time you use an ATM. Additionally, you will receive an exchange rate that is not favorable if you were to bring cash directly to a bank.

Recommendation: ATMs are a great option, but when you use one, take out the maximum limit to avoid having to repeat the process more than once.

Note: Make sure you know your bank card’s PIN, as without it, you will not be able to withdraw money from a Chinese ATM.

Using an International Credit Card

This is a newer option that works well for purchases in China. If you’re a high-level traveler, you can use a credit card to pay for hotel accommodations and some restaurants in larger cities in China.

Some credit cards do not charge fees for international purchases. You should check how they calculate exchange rates, and they can often be a good option.

Sending Money to China via MoneyGram

Companies like MoneyGram charge nearly the same fees as your bank but can make your money available in less than a day. This method works well, but it may be troublesome in China, where you might have to wait in a bank line to pick up your money and then wait again to convert it to Renminbi (RMB), as you cannot send Renminbi, only your home currency.

Sending Money to China via Remitly

Remitly is one of the cheapest options for sending money to China. For first-time transfers, Remitly charges no fees and offers a fair exchange rate. After the first transfer, they charge around $3 for a transfer of $1,000 USD. However, sending Yuan to Alipay and WeChat incurs fees. Alipay charges $7.71 USD, and WeChat only charges if you withdraw funds from your WeChat account to a bank account. Chinese banks also charge a $10 fee. However, if you send $1,000 to China, you will receive 6,524 yuan in your Chinese bank account, making Remitly the best option on this list.

Sending Money to China via Xendpay

Xendpay is a great choice for first-time transfers, as they offer a “pay what you want” model for the first $2,275 you send to China. After that, depending on the currency you’re sending, they may charge an additional 0.41% to 1.5%. However, even when you choose “free transfer,” Xendpay still takes a percentage of the currency exchange, typically around 2% to 3%. Additionally, depending on the payment method you use on the Xendpay platform, there will be other fees:

  • Credit Card – 2.3% fee
  • Debit Card – 2.3% fee

Despite this, it is still not the worst deal, as sending $1,000 to China via Xendpay will give you 6,417 yuan, slightly less than what you get with Wise. With Xendpay, you can expect to receive your money in your Chinese bank account within one to three business days. Xendpay has a high level of security, including data protection, anti-money laundering services, and up-to-date internet security protocols. You can transfer money using their website or mobile app for Android and iOS devices.

Bank Transfers

Fortunately, China recently lifted its restrictions on sending large amounts of money to the country. So, if you want to send $10,000 to China, it is now possible. However, your transfer may be reported, as the government is always looking out for fraud and money laundering. When sending money to China via bank transfer, you won’t pay more than you would using an online money transfer provider. For example, if you send $10,000 from Wells Fargo, you will pay an international wire transfer fee of $18, a currency exchange fee of 5.6%, and a $10 fee from the Chinese bank. In the end, you will receive 61,056 yuan, and your transfer should arrive in two to three days. Bank of America and most other financial institutions will charge a fixed fee and their own exchange rate. They are likely to charge between 2% and 4% for currency exchange. Since your bank may not have a specialized international transfer program, it may take up to four days to receive your money with a bank transfer. For faster options, you’ll need to pay higher fees.

Western Union

When it comes to money transfers, Western Union is usually not the cheapest option. However, when sending money to China, it provides a decent amount of CNY. Western Union charges about 2% of the exchange rate for international transfers to China, and the company does not charge any fees if you choose a bank transfer. By using this method, you would receive 6,401.80 yuan for transferring $1,000 to China, minus a $10 fee from the Chinese bank.

  • Credit Card – $29.99 fee
  • Debit Card – $2.99 fee

The only drawback of using Western Union for sending money to China is that it has a transfer limit of $7,000. Therefore, if you need to send more than that, you should use one of the methods mentioned earlier. Using Western Union is also safe and secure, and the process is user-friendly.

PayPal (Xoom)

You can also use PayPal’s Xoom service to transfer money to a bank account in China. Xoom charges a 2.25% currency exchange fee and does not charge fees for bank transfers. This means that if you send $1,000 to China, you will receive 6,333.60 yuan in your bank account, minus a $10 Chinese bank fee. You can also use your debit or credit card to send money to China, but in both cases, you will pay a $30 fee.

The downside of using Xoom is that you can only send up to $2,984 (18,900 yuan) to China. On the other hand, Xoom offers a distinct advantage over competing services: speed. In China, you can expect to receive your money within three hours or less. Since all Xoom transfers are encrypted and monitored for fraud, you can be assured that your money will be safe. Additionally, the website is easy to navigate, and it can also be linked to your PayPal account. It is also accessible on mobile devices like Android and iOS.

Cryptocurrency

Unfortunately, for those looking to use Bitcoin ATMs in China, there are no such machines available in the country. Cryptocurrencies are generally banned in China, as the government encourages people to use the digital yuan rather than other digital currencies.

Summary

In this article, we reviewed methods for transferring yuan to China with no fees. If you want to send money to China and are looking for the most cost-effective and reliable method, we recommend getting in touch with our advisors at Asan Tejarat Trading to send your money to China without any fees.