Application for and use of a credit card in China


There are two types of credit cards classified by type of holder, namely the corporate card (for any company or institute recognized as a legal entity) and the private card (for individuals over 18 years of age with permanent residency at the place of application).

Application procedures for the corporate card

An applicant for a corporate credit card must appoint a specific person as the card holder. At the same time, a copy of the ID card of the cardholder needs to be submitted. Applicants should go to the card issuing bank, a branch or subbranch to obtain and fill out application forms.

Upon receipt of the application forms, the bank will start investigations on the credit status of the applicant. Qualified applicants will be advised of the bank's acceptance.

Upon receipt of the bank's acceptance advice, the applicant needs to make a deposit by cash or cheque before the card is issued.

If, for some reason, a corporation wants to change its official cardholder, advance notice needs to be given to the card issuing bank and, at the same time, the applicant should go to the bank and process the changes in accordance with the bank's requirements. Any losses resulting from an applicant's failure in claiming and processing the changes shall be borne by the applicant.

Application procedures for a private card

The applicant needs a guarantor. The application form shall be accompanied at the time of submission by copies of the applicant's ID card and the guarantor's ID card.

Preliminary examination will be carried out by the bank staff handling the application and approval will be given by department managers.

Qualified applicants will be notified of the bank's acceptance and an advance deposit needs to be made before the card is made available to the applicant.

How to use a credit card in China

When using the card to make a cash withdrawal or payment, the holder must show his ID card, and sign his name on the receipt.

Cross-city cash withdrawal is subject to a surcharge. Cardholders must pay an annual fee. An overdraft is allowed for emergency situations and on a short- term basis. The overdrawn amount is repaid with interest to the bank within the designated period. The interest on the overdrawn amount will be doubled for an overdue overdraft. The card will be cancelled in the case of a seriously overdue overdraft.

If the credit card is lost or stolen, the holder should immediately report the loss to the issuing bank. All losses incurred before and within 24 hours from the time of reporting shall be borne by the cardholder. The bank charges a handling fee for reporting of lost cards.




Doing Business with China
Doing Business with China
ISBN: 1905050089
EAN: 2147483647
Year: 2003
Pages: 648
Authors: Lord Brittan

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