How To: Set Up an Online Bank Account in China 网上银行

Opening up a regular bank account in China can be a daunting prospect, much less venturing into the world of online banking. Most foreigners in China sadly do not take advantage of the online banking services that their banks offer, mostly because of language difficulties and the lack of a bilingual interface for most banks. However, even those who are not adept in Chinese should find that getting started with online banking is not as difficult as it seems.

Step One: Decide on a bank
Some banks offer easier and more convenient online banking than others. While many foreigners seem to opt for Bank of China, Bank of China is overall one of the less efficient and convenient banking choices. Popular online banks include China Merchant’s Bank, which is secure, easy to use and offers options like online currency exchange. China Construction Bank, another popular choice for online banking, is a bit more complicated, requiring customers to purchase a USB Key that they must plug into their computer when they make online purchases. While this key is a bit of a hassle, it ensures that your online bank account is secure since anyone without the unique USB key will be unable to access the account. When deciding on online banking options, keep both convenience and security in mind and choose a bank that has a healthy balance of both.

Step Two: Go to the bank and apply in person
Most banks do not allow you to set up online banking over the phone or computer. Instead, you must appear in person to fill out some forms and verify that you are the owner of the account. Bring your ID with you and be prepared to fill out forms in Chinese. If you cannot read the forms on your own ask the bank for an English speaking staff member to help you. Most large banks will have at least one English speaker, but when in doubt, find a Chinese friend or colleague to go along with you.

Step Three: Accessing your online banking account
The first time you use your online bank account it might be best to have a Chinese friend walk you through it, particularly if you can’t read Chinese characters. Later you will familiarize yourself with the different characters and what they mean. On your interface you will see options to check your balance, transfer money from one account to another, pay for things online, transfer currency, raise your online spending limit, change your password and view your interest accrued, among other options. You will not want to need to have a Chinese friend with you every time you check your balance, so write down the important characters for the options that you will use most often.

Step Four: online shopping
The main reason why people get online banking is so that they can shop online. With an online banking account with a Chinese bank you will be able to make purchases on Taobao using Alipay (支付宝). Alipay allows you to pay for purchases online, but will hold your money in a sort of escrow until you have received your items and decide to release the money to the seller. Shopping with Taobao is one of the easiest ways to get access to certain goods in China and even if you live in a smaller town will give you access to things like English language books, larger sized clothing, and imported foods. You can now also connect your Chinese bank account to a PayPal account and as of later this year you should be able to use your Chinese bank account to pay for goods and services back home, as PayPal plans to begin accepting unioPay (most Chinese bank cards have the unioPay symbol on them) accounts at the end of the 3rd quarter. This means that with a Chinese bank account you will be able to use PayPal to pay your bills back home, or buy things on eBay.

Security
Many foreigners worry about the security of Chinese online banking accounts. Chinese consumers worry about this too, with the net in China being a notorious hackers’ playground. Because of these concerns most banks have installed safeguards to protect users. China Merchant’s Bank, for instance, will ask for cell phone instant message verification if money is transferred outside of Taobao, while China Construction Bank uses the previously mentioned USB Key. ICBC (The Industrial and Commercial Bank of China) uses a card with passkeys on it which must be used in order to make online transactions – without the passkeys, which are on an actual card, not provided online, money cannot be moved from the account. You will find that because of the high amount of hacking going on in China that banks take extra measures to protect their online customers, so that online banking in China is safe. However, you should also protect yourself – try not to access your online bank from a computer at an internet cafe, wher keyloggers are rampant. Don’t give your card or USB key to others. Choose a password that is difficult to guess, including a combination of letters and numbers and remember that the bank will never ask for your password in e-mails or over the phone.