5 Cost-Effective Methods to Send Money to China Securely
1.
Bank or Wire Transfers
2.
PayPal
3.
Statrys
4.
Wise
5.
Western Union
6.
Remitly
While it’s certainly easier to send money to China nowadays than in the past, some challenges remain, such as ensuring the transaction's safety and cost efficiency.
Whether you are paying the suppliers for your business, sending money home for family and relatives, or simply transferring money to your Chinese bank account, comparing and evaluating the various transfer options is essential to help you choose the best method.
In this article, we will share 6 secure ways to send money to China in 2024. We'll discuss their transfer fees, exchange rates, transaction speeds, and setup processes, providing you with a comprehensive overview to make an informed choice.
What To Consider When Sending Money To China
Like every cross-border payment from one country to another, sending money to China involves factors such as exchange rates, processing fees, and other considerations that may influence your decision when choosing the payment option.
For example, if you are importing from China, you may be required to pay import fees, shipment costs, and many other fees. These expenses can significantly affect the total cost and guide your choice of money transfer option, focusing on minimizing the fees and maximizing transaction efficiency.
Here are some other factors to consider:
- Understanding Total Costs: Transfer and currency conversion fees vary by provider and transfer amount.
- Speed of Transactions: Choose a transfer service based on how quickly the funds will arrive in the receiving account.
- Transfer and Receiving Methods: Ensure the transfer methods align with the recipient’s ability to receive funds, whether through bank deposits, cash pick-up points, or digital wallets (such as Alipay and WeChat Pay.
Before moving on to the different methods of sending money to China, let’s clarify the different terms used for Chinese currency to avoid confusion.
The Difference Between CNY, CNH, and RMB
When sending money to China, you will come across 3 different terms related to the Chinese currency: CNY, CNH, and RMB.
In short, the official currency of China is Renminbi (RMB), while the difference between CNY and CNH is that:
- CNY, or the Chinese Yuan, is the onshore version of the RMB used within Mainland China.
- CNH refers to the offshore RMB, which is traded outside Mainland China.
Helpful Resource: Learn more about the currencies in China, from how they work to their differences.
Now that's out of the way, let's get to know more about the different methods of secure online money transfers to China.
6 Methods to Send Money to China
Method | Transfer Fee | Exchange Rate | Speed |
Bank or Wire Transfer | USD 25-75, plus currency conversion fees | Depending on the bank or financial institution. | 1-4 days |
PayPal | Personal Transactions: Commercial Transactions: | Retrieved from wholesale rate quote + percentage fee | Standard Transfer: 1-3 business days Instant Transfer: 30 minutes or less |
Statrys | HKD 85 | Based on the mid-market rates | 2-3 working days |
Wise | Starting from USD 0.50 + 1.84% of the transaction amount, depending on the payment method | Based on the mid-market rates | A few minutes |
Western Union | From USD 0.99, depending on the sending methods. | Not specified | Instantly or up to 4 business days |
Remitly | Below USD 1,000: 2.99 | Not specified | Instantly or up to 2 working days |
1
Bank or Wire Transfer
International bank or wire transfers are a popular choice for businesses to send global payments due to their common usage and effectiveness.
All major banks in China, as well as every other country, utilize the SWIFT code system for secure international bank transfers between bank accounts.
Key Things to Know About Wire Transfer
Transfer Fees | USD 25-75, plus currency conversion fees |
Foreign Exchange Rate | Varies depending on the bank or financial institution |
Setup Difficulty | Low |
Speed | 1-4 days |
Given the substantial flat rate, wire transfers are not cost-effective for small or frequent transactions. However, some conventional vendors may not accept a new or less common transfer method. When that's the case, a wire transfer may be your best or only choice.
It's important to note that wire transfers to Chinese banks can sometimes be subject to delays. This is due to China's stringent anti-money laundering regulations and foreign investment laws, which may prompt an investigation into the transfer, potentially extending the process by several days or even weeks.
Did you know? Our research indicates that the currency used in SWIFT transfers significantly impacts transfer times. On average, USD payments are processed the fastest.
Open a Business Account with Statrys
No minimum deposit. No maximum transaction. Support from an account manager.
2
PayPal
PayPal is a popular ecommerce payment gateway that enables users to send and receive funds safely and securely. PayPal allows you to link your bank account and credit or debit card, and users can use a PayPal account to make purchases online, send money online, and many more.
It is one of the most recognized payment options in online stores worldwide.
PayPal became available in China in 2019 when it acquired a 70% stake in GoPay. However, it is important to note that personal PayPal accounts registered in mainland China cannot receive international money transfers. Only merchant accounts can accept global RMB payments.
For personal transactions, PayPal offers various options for receiving funds, including direct bank transfers, mobile wallet deposits, and cash pick-up via Xoom.
Key Things to Know About PayPal
Transfer Fees | Personal Transactions: 5% + international fee (USD 0.99 - 4.99) + currency conversion fee (4%) Commercial Transactions: 2.99% + 4% currency conversion fee |
Transaction Limit | USD 4,000 per transaction (non-verified accounts) USD 60,000 (verified accounts) |
Foreign Exchange Rate | Retrieved from wholesale rate quote + percentage fee |
Setup Difficulty | Low |
Speed | Standard Transfer: 1-3 business days Instant Transfer: 30 minutes or less |
Trustpilot Review | (Retrieved 6 May 2024) |
Although PayPal gained popularity in China due to the Chinese language being accessible on the platform, PayPal China accounts are mainly for making international payments, not receiving.
Another downside of PayPal is the substantial transfer and currency conversion fees, which may make it a less attractive choice for larger businesses to send money to China. Before using PayPal for your payment transfer services, it's best to quickly determine the cost of your transaction and the fees you will pay for PayPal services.
Tip: Try our PayPal Fee Calculator to see if PayPal is the right method for you to send money to China.
3
Statrys
Founded in Hong Kong, Statrys is an award-winning fintech company that provides payment services to businesses expanding in Asia. The company offers a simple and streamlined way for businesses to make payments globally.
With Statrys’ multi-currency account, businesses can make international wire transfers to China (also known as TT or Telegraphic Transfers), which are widely accepted by Chinese suppliers.
The Statrys business account offers features to fit the needs of a small business:
- A multi-currency business account in Hong Kong, supporting 11 currencies, including HKD, AUD, CAD, CHF, RMB, EUR, GBP, JPY, NZD, SGD, and USD.
- When you receive CNY funds into your Statrys account, you will be able to convert to 10 other currencies at a cheaper rate.
- Virtual and physical Mastercard® payment cards with built-in controls and limits to manage business expenses
- FX services at competitive exchange rates (spot and forward contracts)
- Xero integration
- Real-time tracking of SWIFT transfer
Key Things to Know About Statrys
Transfer Fees | HKD 85 |
Transaction Limit | No transaction limit |
Foreign Exchange Rate | Based on the real mid-market rates |
Setup Difficulty | Low |
Speed | 2-3 working days |
Trustpilot Review | 4.7/5 based on 273 reviews (Retrieved 6 May 2024) |
4
Wise
Wise, formerly known as TransferWise, is a UK-based payment service provider that allows users to receive and send money worldwide, including the USA, Canada, China, and Singapore. They offer personal and business accounts for users to transfer and manage their funds in over 40 currencies.
Wise is a safe and cost-efficient method to send remittances to China, offering payments through connected bank accounts (ACH), wire transfers, debit cards, and credit cards. Personal account users can also send money to Alipay and WeChat Pay, meaning the CNY payments can be received within a few minutes.
Key Things to Know About Wise
Transfer Fees | Bank Debit (ACH): USD 0.88 + 2.13% Wise Account Transfer: USD 0.50 + 1.84% Wire Transfer: USD 6.99 + 1.85% Debit Card: USD 0.88 + 4.27% Credit Card: USD 0.88 + 9.17% |
Transaction Limit | Via UnionPay: CNY 18,000 Via Alipay or Weixin: CNY 50,000 Business to Business: Unlimited |
Foreign Exchange Rate | Based on the mid-market rate |
Setup Difficulty | Low |
Speed | As fast as a few minutes, depending on the transfer method and partner |
Trustpilot Review | 4.3/5 based on 218,626 reviews (Retrieved 6 May 2024) |
As Wise provides transfer services to and from various currencies, we recommend checking their pricing and CNY transfer FAQ pages for accuracy, as the above fees are for transfers from USD to CNY.
Tip: Having a Wise account can minimize your transfer costs if you’re looking to send money in CNY frequently. Read our Wise Business Account review to learn more about its key features and fees.
5
Western Union
Western Union is an online money transfer platform similar to Wise. They allow users to transfer money to China through different methods, including in-person at a Western Union agent location and online from the mobile app. Individual clients can also send money directly to an Alipay account.
Additionally, they offer flexible delivery options, including a direct transfer to the recipient’s bank account and cash pickup.
You can conveniently schedule your transfers with Western Union if you regularly send remittances to China.
Key Things to Know About Western Union
Transfer Fees | Depends on the sending and receiving method |
Transaction Limit | Up to USD 7,000 for online transfers to bank accounts in China |
Foreign Exchange Rate | Not specified |
Setup Difficulty | Low |
Speed | Depending on the transfer method, it could be instantly or up to 4 business days |
Trustpilot Review | (Retrieved 6 May 2024) |
6
Remitly
Headquartered in Seattle, Remitly is an online remittance service offering international money transfers to over 150 countries. Remitly provides flexible ways to send and receive money in China, including bank deposits, UnionPay, Alipay, and WeChat.
Remitly is an option to consider for expats and individuals who regularly transfer money for personal purposes. It does not charge a transaction fee for transfers above USD 1,000 to China.
As of May 2024, new customers are eligible for a fee-free first transfer with Remitly.
Key Things to Know About Remitly
Transfer Fees | Below USD 1,000: 2.99 Above USD 1,000: Free |
Transaction Limit | USD 2,999 in 24 hours USD 10,000 in 30 days |
Foreign Exchange Rate | Not specified |
Setup Difficulty | Low |
Speed | Same day or up to 2 working days |
Trustpilot Review | (Retrieved 6 May 2024) |
Bottom Line
There are a few different ways to transfer money to China. Currency instabilities, remittance limits, and the urgency of the delivery can affect which method you choose. The information above can help you get a brief overview of your options for sending money to China.
Statrys offers an alternative to traditional banking solutions for businesses incorporated in Hong Kong, Singapore, and the British Virgin Islands.
Our user-friendly online system allows you to manage your account from anywhere at any time. Plus, with our transparent pricing structure, you know exactly what you pay per transaction when sending money to China.
Open a Business Account with Statrys
No minimum deposit. No maximum transaction. Support from an account manager.