Beginner

Safe Payment Methods for Chinese Suppliers

TT, LC, Alibaba Trade Assurance, and fraud risk mitigation

Important Warning

Do not send cash or use Western Union or MoneyGram to suppliers. These methods are irreversible and commonly used in fraud.

Payment Methods Comparison

Bank Transfer (T/T)

Most common method. 30% deposit and 70% before shipping. Least safe if you do not know the supplier.

Cost: LowSpeed: 2-5 days

Letter of Credit (L/C)

Safest for large orders. Bank guarantees payment when conditions are met. Additional cost 0.1-2%.

Cost: Medium to HighSpeed: 5-10 days

Alibaba Trade Assurance

Guaranteed protection from Alibaba. Money back if you do not receive goods as agreed. Best for beginners.

Cost: MediumSpeed: Instant

PayPal

Easy and fast but high fees. Some suppliers refuse due to easy chargebacks.

Cost: High (4-5%)Speed: Instant

Fraud Warning Signs

✕Supplier asks for 100% upfront payment

✕Refusal to use Alibaba Trade Assurance

✕Bank account in different country than supplier company

✕High pressure to pay quickly

✕Prices much lower than market rate

✕No presence on Alibaba or Global Sources

Best Practices

Start with small quantities

Test supplier with first order of $500-1000 before large orders

Use 30% deposit

Do not pay more than 30% upfront to new suppliers

Verify the supplier

Verify business license and check supplier reviews

Keep all documentation

Record every conversation, invoice, and payment receipt

Recommended Payment Structure

30% Deposit

When confirming order and starting production

70% Final Payment

After quality inspection and before shipping

After payment safety

Make payment decisions part of a paid verification workflow

Before you send money, use audits, comparison, and alerts so the payment decision is backed by real workflow data, not instinct.

Supplier Audit reports

Add another verification layer before sending the first payment.

Audit

Open workflow

Compare suppliers

Balance price and trust instead of defaulting to the first supplier who accepts your terms.

Compare

Open workflow

Tracked supplier alerts

Keep monitoring suppliers and products after the first order or payment.

Alerts

Open workflow

Payment Methods Comparison

Bank Transfer (T/T)

Most common method. 30% deposit and 70% before shipping. Least safe if you do not know the supplier.

Cost: LowSpeed: 2-5 days

Letter of Credit (L/C)

Safest for large orders. Bank guarantees payment when conditions are met. Additional cost 0.1-2%.

Cost: Medium to HighSpeed: 5-10 days

Alibaba Trade Assurance

Guaranteed protection from Alibaba. Money back if you do not receive goods as agreed. Best for beginners.

Cost: MediumSpeed: Instant

PayPal

Easy and fast but high fees. Some suppliers refuse due to easy chargebacks.

Cost: High (4-5%)Speed: Instant

Best Practices

Start with small quantities

Test supplier with first order of $500-1000 before large orders

Use 30% deposit

Do not pay more than 30% upfront to new suppliers

Verify the supplier

Verify business license and check supplier reviews

Keep all documentation

Record every conversation, invoice, and payment receipt