There’s a reason that China has turned to a virtually cashless society: Virtually everyone uses e-wallet apps like Alipay. People make money transactions using Alipay often throughout each day. You may be wondering: is Alipay free to use? How much in fees does Alipay charge if you add a foreign credit card to make purchases and transactions? And what is Alipay international transaction fee?
Read on to find all the answers. But be aware, you can’t use Alipay to make international money transfers now from China to abroad. We’d recommend Wise, with Wise multi-currency account, to convert 40+ different currencies, withdraw cash from local ATMs, and send money out of China.
Send money home using Wise
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Is Alipay free to use?
Registering for an Alipay account is free. However, when you use services such as transferring money to a card or withdrawing from an Alipay balance account, you will be charged if your payment exceeds a certain amount.
Alipay credit card fee²
- After successful payment by credit card, Alipay will charge a handling fee to the seller, and the buyer does not need to pay the handling fee;
- Handling fee is only charged on the amount paid by credit card, the use of Alipay account balance, red packets; Tmall points, and shopping vouchers are not calculated for handling fees.
Can you add your foreign credit card to Alipay?
Yes, you can. Both the Alipay web version and Alipay app support payment using international credit cards, including Visa, MasterCard, and JCB cards issued by global card issuers (except Washington State). But, only personal bank accounts are supported³.
How much does Alipay charge in fees for foreign credit card purchases and transactions?
When you use your VISA, MasterCard or JCB card to pay for goods on Taobao or Tmall, Alipay will charge a flat rate of 3% of the transaction amount as a service fee³.
Currently, Alipay only supports international credit card payments on Tmall and Taobao. And they must be physical goods (except mobile phone bills), or air tickets + air ticket insurance.
Besides this, international credit cards are not supported for second-hand goods, pre-sale goods and T-mall International transactions.
Alipay international transaction fee
Despite the fact that Alipay comes with the Alipay Quick Collect⁴ and Cross-border remittance for Chinese nationals to collect funds overseas and make payments for study abroad, expats in China are unable to make international money transfers using Alipay. But it’s very worthwhile knowing that Wise was designed for this purpose.
When you use Wise to send money abroad, you always get the mid-market rate -- it’s the exchange rate banks use to trade with one another. Wise never tallies this rate higher to make a profit, so you get to keep more of your money. Wise fees for sending money abroad depend on the amount, the destination country, the currency to which you’re sending funds, and the payment method you choose. You may visit Wise pricing page to see more of Wise transaction fees.
Alipay transaction fee⁵
- Alipay transfer services include, but are not limited to, Transfer Payment, AA Collection, and I Want to Collect. If fees are incurred, Alipay will charge the transaction initiator a service fee;
- Transfer to bank card: After exceeding the free amount, the exceeding amount is charged with service fee at 0.1%, minimum RMB 0.1;
- Withdrawal of Alipay balance: After exceeding the free amount, the exceeding amount is charged with service fee at 0.1%, minimum RMB 0.1.
What is the merchant fee for Alipay?
Alipay charges merchants depending on the method of collection, the method of withdrawal, and the prevailing incentives.
If you use a QR code to receive money, Alipay issues a free cash withdrawal quota at 1:1 of the amount received by the QR code. It is valid for one year and expires on the last day of the same month of the following year.
If a merchant uses Alipay's Payment in Person service to collect payments, the rate is 6‰. For example, you collect money 5 times a day, to a total of RMB 1000. After the success of each transaction, Alipay deducts the acquiring service fee at the rate of 6‰ order by order, and so deducts 6 RMB/1000 RMB in total⁶.
For overseas Alipay merchants, the Alipay Merchant Services may include service, administration and other fees. Unless otherwise specified and approved in writing with the merchant, all prices and fees are listed in the Merchant Portal⁷.
Wise: an effective way to transfer your earnings out of China!
Alipay international transfers are available for very limited, Chinese nationals purposes only, as mentioned earlier. In comparison, Wise is an expert in international money transfers.
Sending money abroad using Wise is cheap and efficient. Skip the hassle of going to a physical bank in person. Instead, with just a few clicks on your Wise app or the Wise website, you can send money out of China to 160+ countries. And remember that the mid market exchange rate Wise uses to move your money internationally will save you a lot!
Pay for your transfers with Alipay
We’ve introduced an easier way for you to pay for your transfers — Alipay.
Whether you’re paying expenses in another country or sending money to family back home, you can use Alipay to pay for transfers of up to 50,000 CNY.
Unlike bank transfers, there are no minimum limits on what you can send and Alipay operates all day, every day. So you can send money at a time that suits you, not them.
How to pay with Alipay
- Enter an amount: Select CNY as the currency you’re sending from, then enter how much and which currency you’re sending to — you can send up to 50,000 CNY per transfer.
- Choose your recipient: This needs to be either your own account outside of China or your Wise balance.
- Select Alipay as your payment method: If you’re on your phone, you’ll be automatically redirected to your Alipay app. If you’re using our website, you’ll be shown a QR code which you can scan from your Alipay app.
- Confirm payment: Once you’ve paid, go back to the Wise app or website and select ‘I have paid’. Your transfer will then be on its way.
The Wise services are easy to use. You can choose from over 40 currencies to hold in your Wise account and convert them quickly. You can also receive international money transfers in China, with account details and IBANs for Pounds, Euros, Canadian dollars, Australian dollars, etc.
This service is provided in partnership with a licensed third party payment provider in China.
Source：
- Alipay help center: Is there a fee to use Alipay?
- Alipay help center: Standards for credit card payment
- Alipay help center: International credit card payments
- Alipay Render: Global remittance tutorials
- Alipay help center:Alipay service Charges
- Alipay business center: Merchant receives payment into bank account
- Global Alipay: Alipay merchant services terms and conditions
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information. This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
