Cash, tipping and haggling in China: quick answers
Photo: charlesdeluvio / Unsplash
China pays by phone. That's the headline everyone has heard, and it's true. But "cashless" doesn't mean cash is useless, and a few habits from home (tipping, paying everything by card) don't carry over. Here are the questions visitors ask most, in the order they usually come up.
Cash
Do I need cash at all?
Very little, but yes. Nearly everything, from a bowl of noodles to a train ticket, is paid by scanning a QR code with Alipay or WeChat. Cash covers the gaps: the stall whose code won't take a foreign card, a dead phone, a bank that blocks your card on day two.
My rule is a few hundred yuan, mostly in 10s and 20s, split between wallet and bag. I rarely spend it. I'd still never go out without it.
Are shops allowed to refuse cash?
No. Cash is legal tender, and refusing it breaks the rules. In May 2024, Caixin reported that the People's Bank of China had fined seven businesses for refusing cash, among them a KFC franchise in Wuxi, which was fined 30,000 yuan, with the employee involved fined separately. Caixin also noted the cash campaign had been stepped up partly to make life easier for foreign visitors.
In practice, though, the issue is change, not permission. A Dalian taxi driver told China Daily in 2024 that many drivers are "reluctant to accept cash because it's inconvenient to provide" change. Banks there had handed out more than 110,000 "change wallets" of small notes to shops and drivers. So bring small notes. A 100-yuan note for a 12-yuan taxi ride may get you a sigh, or no change at all.
Visitors hit the same wall from the other side. In early 2024, the South China Morning Post described a Singapore traveller who fell back on cash at street stalls when his foreign card wouldn't work, only to find that many vendors preferred phone payments and often had no change. The lesson isn't "bring lots of cash". It's "bring the right notes".
Where do I get yuan?
- ATMs. The big banks' machines at airports and in city centres usually take foreign cards. Bank of China, for example, says its ATMs accept UnionPay, Visa, Mastercard, JCB and American Express, with a cap of 3,000 yuan per withdrawal; your own bank sets the daily limit and the fees.
- Bank counters. Bring your passport. It's slower but the rate is fair.
- Airport exchange counters. Convenient, and the rate is usually poor. Change only what you need for the first day.
- Before you leave home. Fine for a small float, but rarely the best rate.
If you're used to German or Japanese banks, which often block foreign withdrawals by default, check your card's settings before you fly. A blocked card is a phone call to your bank at 3am their time.
Will foreign cards work in shops?
In big hotels, department stores, and major attractions, often yes. China's government payment guide says hotels rated three stars and up, and the top-rated tourist sites, accept bank cards. In a corner shop or a noodle place, assume not. Your card's real job here is to sit inside Alipay; see setting up Alipay.
Tipping
Should I tip?
Generally not. Restaurants, taxis, DiDi drivers, hairdressers and bars don't expect it, and there's no tip line on the payment screen. If you've lived in the US, this takes some getting used to; within a week it feels normal. Leaving cash on the table may get you chased down the street by a waiter who thinks you forgot it.
Are there exceptions?
A few. Private tour guides and drivers on a multi-day trip often welcome a tip, especially on tours sold to foreigners. Some international hotels have a service charge already on the bill (check before adding anything). Bellhops at upmarket hotels won't refuse a small note. That's about it.
What about service charges?
Higher-end restaurants and hotels sometimes add a service charge, usually shown on the menu or bill. That's not a tip, and you don't need to add one on top.
Haggling
Where can I haggle?
At markets, tourist stalls, antique and souvenir streets, and some clothing and electronics markets aimed at visitors. Start well below the asking price, stay friendly, and be ready to walk away. Walking away is often what gets you the real price.
Where can't I?
Shops with price tags, malls, supermarkets, restaurants, hotels, taxis and anything paid in an app. Prices there are fixed, and trying to bargain just causes confusion.
Any tips for markets?
- Decide what it's worth to you before you ask the price.
- Use a calculator on your phone. Vendors will type numbers back and forth with you.
- Don't name a price you won't pay. Once they agree, you're expected to buy.
- Pay by QR code if they offer it; you avoid the change problem.
A quick reference
| Situation | What to do |
|---|---|
| Restaurant bill | Scan the code or show your pay code. No tip. |
| Street taxi | Alipay or WeChat, or small notes. No tip. |
| Market stall | Haggle, then pay by QR or cash. |
| Hotel deposit | Usually a foreign credit card at the desk. |
| Private guide | A tip is welcome, not required. |
| Phone dead | Cash. This is why you carry it. |
Still, keep a few hundred yuan for the odd moment when your phone dies or a card won't go through. You may never touch it, but you'll be glad it's there.
Sources: Caixin Global: China fines KFC and other businesses for rejecting cash (May 2024) · China Daily: payments made easier for foreign visitors, expats (May 2024) · Bank of China: foreign card ATM withdrawals · gov.cn: payment guide for overseas visitors · SCMP: cashless shift hits foreign tourists (Feb 2024)
If something here has changed, email me. I re-check every guide and update the date at the top.
Written by David, who lives in China. About me