Simplifying Fast and Easy Money Transfers to China: Best Practices When Transferring Money to China
50If you have ever tried to send money to China, have you ever considered whether your money would arrive in U.S. dollars or in Chinese Yuan? Most people never do.
Stop to consider that even though you send U.S. currency|, the recipient will receive the money in Yuan. Some transfer services offer to convert to the correct currency for you, but it is at a price.
Most often, the exchange rate is determined by the business itself, so it is difficult to find a fair rate. You may use a bank wire transfer service, but you will surely run into a whole other world of problems.
To wire funds to China through a bank, both parties are obliged to have an account with that bank. This ensures the government is able to track money and ensure no illegal activity is happening.
If the banks are close by, then there’s no problem. But in the event that the recipient is away on vacation, does not have an account, or lives a distance from that particular bank; then the money transfer will be more difficult than planned.
If you would rather go a different route, there are other options. The first is an old-fashioned telegram-style transfer where you send it, and your recipient picks it up. The exchange rates aren’t always great, always fair but it’s still a viable option.
One other option is through the internet, but a big problem remains that it takes too much time for the funds to become available.
Regardless, the days of fast and easy money transferring are near, with the backing of pre-paid credit cards. Someday a person will be able to go online to add money to a card. All the recipient has to do is take their card to the bank and collect the money. Although this method still has some kinks to work out, it may soon be the most popular way to transfer money.
