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[06/17 Update] Many readers may feel this isn’t very useful, and that’s probably true, but we still wanted to share a few interesting angles. Thanks to everyone for contributing data points!

  • Each account can claim a total of four coupons. If you have heavy usage, you can switch among multiple accounts to claim more. HT: reader Zhang Sijie
  • There does not appear to be a usage cap on the coupon. As long as the charge goes through, the fee is waived.
  • If you redirect through Alipay, you will still have to pay Alipay’s 3% fee no matter what. That cannot be avoided. It is recommended to check out directly through Taobao. HT: many readers.
  • Taobao has a settlement department in CA. AMEX transactions code as online purchases, and the settlement location is Singapore, so there will be FTF. Visa/Master transactions code as Department Stores and online purchases, with settlement in California, so US credit cards should have no FTF, and the usual category bonuses on US credit cards should still trigger. For example, US Bank Cash+ can earn up to $100 cash back per quarter, and in Q4 you may also be able to use Chase Freedom 5x UR and BofA 123’s 3% online shopping category. (Make sure to choose USD at settlement to avoid FTF.) HT: reader Zhang Sijie, WeChat reader CK

Coupon path in the app: Red Packet / Coupons. You can claim with multiple accounts, four per account. There does not seem to be a spending cap; if the charge goes through, the coupon works. The maximum tested appears to be at least several thousand USD. No matter which region your Taobao account is originally under, you can claim the coupon as long as you set the region to the US.

A single Tmall purchase of 2,000 USD works fine. With V/M, selecting USD results in no FTF, and it can also trigger US Bank Cash+’s 5% Department Store category.

Image from WeChat reader CK, showing appliances purchased with this coupon
The purchase can trigger Cash+ Department Store 5%; image from WeChat reader CK

US Bank Cash+ has basically become a Taobao card now [make sure to choose USD for settlement]... That’s up to $100 cash back per quarter. Of course, Taobao normally charges a 3% processing fee, but the US region often has promotions, such as 100-10 type coupons. Keep an eye out; it can be pretty worthwhile.

[Originally posted 06/14] China is in full swing with its 618 shopping festival right now (though some of those promotions may be more for show than substance). But Taobao US has launched a pretty decent offer: a limited-time waiver of the fee for using US credit cards. This fee is normally 3%, but it is waived during the promo period. You do need to claim a coupon, so if you will not use it, please do not take up a slot unnecessarily.

How to claim the coupon

  • Open the Taobao app
  • Set your region to the United States (required)
  • Enter the main promo page and choose the US-exclusive section
  • Select the “3% USD payment fee waiver” coupon
Be sure to set your region to the US before clicking here
Then claim the coupon; the image is a bit ugly, just ignore that

Notes

This coupon does not mention any cap, so it should waive the fee throughout the promo period.

  • Promo period: 2020.6.16-2020.6.20 (Beijing time)
  • After claiming, you may not be able to see the coupon directly. When checking out with a US credit card, Taobao’s 3% processing fee should be deducted automatically.
  • This waives Taobao’s own processing fee, not FTF. If you want to use it, a no-FTF credit card such as CSR is recommended.

Taobao US can still have some worthwhile finds from time to time. Taobao has warehouses in the US, and some items can also be shipped directly from China to the US.

Also, if you are shipping back to China, in theory this coupon still works if you switch the shipping address back to mainland China and then use a US credit card. The item can be sent to an address in China, or to other eligible overseas regions. If you are currently in China and need to use a US card soon, maybe this is a reason to buy something on Taobao.

Purchase categories and bonus multipliers

Taobao accepts US credit cards directly, and you can also redirect through Alipay and then use a US credit card there (via the Alipay channel). Normally there is a 3% fee either way, and there may also be FTF.

  • If you pay directly through Taobao, you can use V/M/Amex credit cards (YMMV; not everyone can successfully link AMEX). The purchase category is online shopping, so you may want to use a card with online-shopping bonus categories and no FTF.
  • If you redirect through Alipay, the purchase may code as groceries! That means grocery bonuses and various temporary pandemic-era benefits may trigger as well. (Only V/M cards can be linked; for example, CSR 5X plus reimbursement can be quite nice.) [Note: Recently the category coding seems to have changed, YMMV. If you want to try it, it is best to test with a small transaction first. HT: reader Curtis]

Alipay’s risk controls have been pretty strict lately, but once you get through them, you can start playing with it. Good luck.

KUKU thinks Alipay customer service is much more efficient than WeChat’s...

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