Suppliers and sourcing
Safe and Effective Payment Strategies for Chinese Suppliers: Avoiding Fraud
Choosing the appropriate payment method for Chinese suppliers is a strategic decision that balances security, convenience, cost, and reliability.
By Sami Al-Hajri1 min read
Choosing the appropriate payment method for Chinese suppliers is a strategic decision that balances security, convenience, cost, and reliability.
Preferred Payment Methods
Recommended Services:
- Veem: Specializes in sending payments to China
- Low fees: approximately 0.5% ($100 per $20,000)
- Requires registration from both parties
- Wise (formerly TransferWise): Reliable money transfer service
- Competitive exchange rates
- Transparent fees
- OFX: Provides transfer services for 55 currencies with 115 banks
Payment Methods to Avoid:
- Western Union: Unreliable, high fees (7-12%), preferred by scammers
- Direct bank transfer: Excessive fees, little buyer protection
Safety Tips:
- Always verify supplier's bank details
- Ensure business legitimacy before payment
- Consider using escrow service or letter of credit for high-value transactions
- Never pay to personal accounts
- Get samples before large orders
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