Payment options with foreign suppliers Part 1

                                  Payment options with foreign suppliers

                                                           Part 1

      When dealing with any supplier for the first time, you have to be extremely careful. There are so many scammers operating out in the wholesale industry, so before you decide to send money to your supplier, make sure you do all the background checks available to you to make sure you are dealing with a legit company.

And even then, always, always start with a small trial order to avoid huge losses if that supplier turns out a scammer. 

When you have done all the checks and verified the supplier, you can place your first order. which payment method is safest to use? Usually, suppliers will accept the following:

Wire Transfer - This means sending money from your bank account to the supplier's bank account. This is the most common payment method used in B2B transactions.

Wire transfer doesn't offer any protection, so only use this method with suppliers you trust 100% .  sending money to a supplier in china can take up to 5 working days.

Transfer fees will vary from Bank to Bank but in most cases will be in the region of  20$ - 40$. Most banks offer international wire transfers at a reduced cost when you use the bank's online banking facility.

One of the fastest ways to transfer money between two accounts is to wire transfer money. sending money through a wire transfer usually requires paying a nominal fee, but the person receiving the money can often withdraw it on the same business day.

A wire transfer is an electronic method of transferring funds from one person or company to another. Wire transfer are typically one of the quickest ways to transfer funds  from one account to another. 

Fees for wire transfer will depend upon the bank and the country to which you are sending money.

Finally, the fee you pay your bank to carry out this transaction is usually a fixed one which means that the more money you send per transaction, the lower per pound fee you will pay.

Most Chinese companies will accept wire transfer as a default payment option. If they don't, it may be a sign that something dodgy is going on. Make sure you only send money to the company's bank account and not to a personal bank account, no matter what story the Chinese supplier tells you.

Credit / Debit cards - Debit and credit cards offer more than a way to access money without having to carry around cash or a bulky checkbook. 

Credit cards are lines of credit. when you use a credit card, the issuer puts money toward the transaction. This is a loan you are expected to pay back in full ( usually within 30 days), unless you want to be charged interest.

Debit card - any time you use a debit card to buy something, money is deducted from your account. with a debit card, you can really only spend the money you have available to you.

Credit / Debit cards - one of the safest ways to pay for goods is by using your credit card. Chinese suppliers will vary rarely take credit card payments but companies in the EU or US will, in most cases, be happy to accept credit card payments.

Some companies may add on a small extra fee to cover the fees they have to pay themselves when they accept a payment by credit card.

Why are credit cards good for paying your supplier? first of all, with most card issuers you can initiate a charge-back if something goes wrong with your order or the supplier turns to be a scammer.

Secondly, most cards offer a cash-back or points system where you can actually get some money back in the form of bonuses from your bank - be they frequent flyer points or extra cash in your bank account.

Lastly, if the supplier accept credit cards it's a pretty good sign that he's legit, especially if we are talking about suppliers in the UK and US. why? because it is not that easy to set up a merchant account and start taking credit card payments. Companies have to undergo a strict verification process to be able to take card payments and this is something most scammers will not do.

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