If you look at Beijing’s soaring skyscrapers, gleaming motorways and glitzy shopping malls, it’s easy to conclude that this city is as modern as any in the world. And then the waiter brings the check. Sorry, madam, we don’t take credit cards.
In Beijing, more than any other big-country capital, cash is king. Official figures indicate that 110,000 Beijing businesses now accept credit cards, twice as many as in 2006. What those figures don’t show is how many accept only Chinese-issued cards (my guess is about half). And though 110,000 sounds like a large number, there are vastly more establishments that are extremely allergic to plastic of any color.
So when visiting Beijing, or some other Chinese city, it’s important to know how to get your hands on large amounts of cash. With an eye to the Olympics, Premier Wen Jiabao in 2006 ordered nine ministries and the central bank to “further develop consumer financial instruments.” The result was a vast expansion of retail banking – for decades virtually non-existent – including services for visitors. Though foreign credit cards may not yet be widely welcomed, foreign currency exchanges have proliferated, and it’s now possible to change cash and travelers checks at 80 percent of the city’s three-star-and-above hotels. Better yet, automated teller machines in Beijing are up to 9,400 and counting.
The trick is to find one that works. About half of all ATMs in China accept only credit and debit cards that are part of the domestic UnionPay system. So look for cash machines bearing the stickers of international networks like Visa, Plus, MasterCard and Cirrus. Then pray.
ATMs at Chinese banks get a workout – locals prefer them over the notoriously long lines at teller windows – so the machines are often out of cash or receipts or gas or spare parts. They also sometimes fail to make the connection to a foreigner’s bank. So if you get a message to contact your card issuer because your plastic has been declined, don’t despair. Just try another machine. And even when you find an ATM that works, withdrawals are typically limited to 2,000 yuan (about $280 at the current exchange rate) and sometimes less. Foreign banks like Citibank and HSBC have machines that dispense more. These are not numerous, but you will find a handful at the airport – both before and after customs.
Get as much cash as you can at one time, since you’ll be paying your bank’s $3 or $4 service fee no matter what amount you withdraw. Also, you’ll need those banknotes. Expect to pay for much of your food, transportation, tips, souvenirs, cheap sportswear at the Silk Market and, in some cases, even lodging in cash. Stacks of it. The largest bill is 100 yuan, worth only about $14 (it’s the red one, with Mao’s face on it). The government has put 36.5 billion new notes into circulation so far this year, twice as many as last year, so there is a good chance your stash of cash will be crisp and clean. Don’t be insulted if a cashier holds your bill up to the light to check its authenticity. Don’t be surprised if, upon handing over several bills, they are run through a counting machine, which nearly every Chinese business seems to have on hand. Or, more often, to be told that the credit card machine isn’t working right now, so how about paying in cash?
You can protest, stand on your rights as a credit-worthy customer of Visa, MasterCard or American Express, and ask to see the manager. That sometimes miraculously fixes the broken machine. But I always end up feeling like an idiot when I do the ugly American act. The alternative is to behave as the Chinese do: hand over a brick of bills and watch them be counted with the care found only in a country that loves its lucre, clean or filthy.