Useful tools | What payment methods are used by Chinese suppliers?

By justchinait
September 30, 2020

What payment methods are acceptable for the Chineses supplier? Here are 7 common ways to pay your suppliers in Mainland China:

1. T/T Telegraphic transfer

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Wire transfer is the most commonly used payment method in foreign trade. For large-value transactions, wire transfer is basically the choice. It is recommended that you can also choose wire transfers for less than US$10,000 and higher than US$1,000.

Wire transfer bank fees are generally divided into three parts.

① The handling fee incurred by the

② The handling fee of the intermediary bank is generally deducted from the remittance amount;

③ The handling fee of the beneficiary’s beneficiary bank is deducted from the remittance amount.

The time for the wire transfer to arrive is the most concerning issue. It varies greatly from bank to bank, ranging from three working days to one week. This depends on the route of the remittance, and the bank that passes in the middle will arrive as quickly as possible.

2. Western Union

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Western Union West is the world’s leading express remittance company with a history of 150 years. It has the world’s largest and most advanced electronic remittance financial network, with agency outlets in nearly 200 countries and regions around the world. Western Union is a subsidiary of First Data Corporation (FDC), one of the Fortune 500 in the United States. Agricultural Bank of China, China Everbright Bank, China Postal Savings Bank, China Construction Bank, Zhejiang Chouzhou Commercial Bank, Jilin Bank, Harbin Bank, Fujian Strait Bank, Yantai Bank, Longjiang Bank, Wenzhou Bank, Huishang Bank, Shanghai Pudong Development Bank, etc. Many banks are Western Union’s partners in China. It takes about 15 minutes to pay in this way.

Specific steps:

The customer gets the supplier’s contact information (name, address, phone) without a bank account. After the remittance, the guest will give the following information:

(1) The name of the remitter

(2) The country of the sender

(3) Currency and amount of remittance

(4) MTCN is commonly known as monitoring number

Then, with this information, the supplier can go to the Agricultural Bank of China or the post office with the ID card, or withdraw money from the Western Union bank. Regarding fees, Western Union’s handling fees are borne by the payer, and payment fees are different in different countries. It is best to consult the Western Union Paying Bank locally. Western Union has a relatively high acceptance among European and American customers, and it is generally more convenient to remit small amounts in US dollars.

3. MoneyGram

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MoneyGram is one of the international remittance methods similar to Western Union. Its business model is the same as Western Union. It currently ranks second among similar businesses in the world. Since the remittance does not go through the bank channel, it is through the money transfer channel of MoneyGram, so there are many cooperative banks in China. MoneyGram is relatively cheaper than Western Union.


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In fact, we recommend that you choose the preferred method of micropayment or PayPal. PayPal is an international third-party online payment. Online payment is convenient and fast. In addition, it can relieve the buyer’s worry about not receiving the goods after payment. The utilization rate of foreign buyers accounts for more than 80%, and buyers cover a wide range, especially in Europe and the United States. Suppliers only need an email address to register and open accounts for free.

As a third-party tool, PayPal buyers can complain to PayPal if they have any problems. Reasons to recommend PAYPAL:

1. Security of funds.

2. Fast, after the buyer pays, it will arrive immediately.

3. Convenient, you can use various tools to manage transactions to improve efficiency.

4. It is highly accepted in the global market. PayPal is currently used in 190 markets and 6 currencies. It is the most mainstream payment method among small cross-border trade tools.

5. Alipay (International Version)

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The international version of Alipay (ESCROW SERVICE) is a new online payment solution jointly created by Alibaba International Station and Alipay for international buyers and sellers. But because it is now a very new payment method, it is currently not widely accepted in the international market, and it is mainly used on the AliExpress platform launched by Alibaba.

6. Credit card

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In fact, in Europe and the United States, the mainstream payment method is still a credit card method. In Europe and the United States, credit cards are linked to personal credit information. Therefore, the credit card method is also a very safe payment method. Now the cross-border e-commerce platform, through the cooperation of VISA and MASTERCARD, can be paid by credit card.

7. Hong Kong offshore company collection

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Hong Kong account and offshore account have several similarities.

① Hong Kong accounts have no foreign exchange control and can be operated directly over the counter. At present, cash deposits are not allowed in offshore accounts.

② In terms of bank fees, local banks in Hong Kong charge less.

③ The account has complete functions and is more suitable for international payments.

④ Fast account opening.

HSBC is the first choice, with many branches, good service, high credibility, fast collection and payment, free online banking, no account opening requirements, you can get an account and online banking on the day you open an account in Hong Kong.

To sum up, in fact, the core point of small cross-border payment is secure. According to our habits, we generally choose the mainstream payment method or choose our conventional wire transfer method. Don’t be afraid of trouble for things like money, be sure to choose reliable, familiar and safe payment methods.

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