China payments reference
Payments & RMB Glossary
Plain-language definitions for the payment, banking and currency terms international users encounter when paying, transferring money or doing business with China.
A reference, not a list of jargon
Definitions explain how a term is commonly used and where similar concepts are often confused. Provider rules and regulatory requirements can change, so important decisions should be checked against current authoritative information.
Alipay
A mobile payment and digital-services platform operated by Ant Group. International users may be able to link eligible foreign cards, subject to verification, provider rules and account conditions.
Authentication
A process used to confirm that a user or transaction is genuine. It can include passwords, device checks, biometrics, one-time codes or risk-based controls.
Bank identifier code (BIC/SWIFT)
A standardized identifier used to route and identify financial institutions in international transfers. BIC and SWIFT code are commonly used interchangeably.
Chargeback
A card-network process through which a cardholder disputes an eligible transaction. It is different from a merchant refund and is governed by issuer and network rules.
CNY
The ISO currency code for the Chinese yuan when used in mainland China’s onshore market. RMB is the currency’s name; CNY is a formal currency code.
CNH
A market convention for renminbi traded outside mainland China’s onshore market. CNH is not a different national currency, but pricing and liquidity can differ from CNY.
Cross-border payment
A payment in which the payer, recipient, financial institutions or settlement process spans more than one country or jurisdiction.
Digital wallet
Software that stores payment credentials or enables payments through an app or device. A wallet is not necessarily a bank account and may rely on linked cards or bank rails.
Dynamic currency conversion (DCC)
An optional card-payment service that converts a purchase into the cardholder’s home currency at the point of sale. The displayed rate and fees should be reviewed before acceptance.
Exchange rate
The price of one currency expressed in another. Consumer, bank, card-network and reference rates may differ because of timing, spreads and fees.
Foreign transaction fee
A fee that a card issuer may charge for a transaction processed outside the card’s home market or in a foreign currency. It is separate from merchant or wallet fees.
FX spread
The difference between a provider’s buy and sell rates, or between the customer rate and a reference rate. A low advertised transfer fee does not necessarily mean a low total FX cost.
Interbank rate
A broad term for rates used between financial institutions. Publicly displayed interbank or mid-market figures are reference points and may not be available to retail customers.
KYC (Know Your Customer)
Identity-verification controls used by financial institutions and payment providers. Requirements vary by provider, account type, jurisdiction and risk assessment.
Merchant-presented QR code
A payment flow in which the customer scans the merchant’s QR code, enters or confirms the amount and authorizes payment in a wallet.
Mid-market rate
The midpoint between indicative buy and sell prices in a currency market. It is useful as a benchmark but is not a guaranteed customer transaction rate.
Payment rail
The infrastructure and rules used to move payment instructions and value between parties, such as card networks, bank-transfer systems or wallet ecosystems.
PBOC
The People’s Bank of China, China’s central bank. It has responsibilities related to monetary policy and oversight of parts of the financial and payment system.
QR code payment
A payment initiated through a machine-readable code. The merchant may display the code for scanning, or the customer may present a code for the merchant to scan.
RMB (renminbi)
The official name of China’s currency, meaning ‘people’s currency.’ Yuan is the unit in which prices are commonly expressed; CNY and CNH are market codes or conventions.
Remittance
A transfer of money, often across borders, to an individual or household. Providers, purposes, limits and documentation requirements vary.
Settlement
The completion of a payment obligation through the transfer of funds between participating institutions or accounts. Authorization and settlement are separate stages.
SWIFT
A global financial messaging network used by institutions to exchange standardized payment instructions. SWIFT messaging is not itself the underlying movement of funds.
Transaction limit
A maximum value or frequency allowed for a payment, transfer or account during a defined period. Limits can depend on verification, provider policy, funding source and regulation.
UnionPay
A payment network associated with bank cards issued in China and accepted through participating institutions and merchants internationally.
Verification
Checks used to confirm identity, account ownership, payment authority or transaction legitimacy. Successful verification does not guarantee every transaction will be approved.
WeChat Pay
A payment service within the WeChat ecosystem operated by Tencent’s payment entities. Availability and foreign-card functionality depend on current provider rules and account conditions.
Yuan
The principal unit of the renminbi. Prices are stated in yuan in the same way that prices in US currency are stated in dollars.
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