If you areImport from ChinaYou're probably worried about how to play with your merchants or factories.
You can try T/T payment to China.
But how to avoid the risk of losing money?
Or how to make the best use of T/T payment?
So if you want to learn tips and tricks for T/T payments, read this guide.
- What is T/T payment?
- What are the advantages of T/T payment to China?
- Are there disadvantages in T/T payments to China?
- When should I use T/T payment to China?
- Why do Chinese suppliers use T/T payment?
- How does T/T compare to other payment methods in China?
- How do you make T/T payment to China?
- What is the cost of T/T payment to China?
- How to compare LC and T/T payments with China?
- How long does it take to complete T/T payment to China?
- How do T/T payments to China and SWIFT payments compare?
- What is the safest payment method when importing from China?
- What terms do you use in T/T payment to China?
- How do you reduce the risk of T/T payment to China?
- How to negotiate better payment terms when importing from China?
- What are the tips and tricks about T/T payment to China?
- Can you use T/T payment to China when importing from Alibaba?
- Is T/T payment to China safe?
- Can you apply for a refund after T/T payment to China?
- What factors affect the speed of T/T payment to China?
- How does Chinese company check before making T/T payment to China?
- Are there any scams in T/T payments to China?
- What details do you need to make T/T payment to China?
- What can you do if you fill in the wrong information when making the T/T payment to China?
- If a supplier cancels the order after making a T/T payment to China, what can he do?
- Can you make T/T payments to China in Chinese Yuan?
What is T/T payment?
T/T payment also known asbank transfersrefers to an international method of electronically transferring money from the buyer's bank to the seller's bank.
What are the advantages of T/T payment to China?
Using T/T payments in China has brought several benefits to both buyers and sellers, including;
- First of all, a wire transfer is one of the safe and secure ways to transfer funds between different countries.
You need to provide some of your credentials to create strong security.
- Bank transfers are available in most major currencies.
- Easy to negotiate: In addition to insurance, T/T payment is easy. Simply contact your nearest service provider.
Make sure you have the recipient's account number along with any other information required by your bank.
You will be asked to fill out a form and that's it.
- Efficient: Telegraphic transmission is widely used in most countries, so it is effective for any manufacturer in China.
Manufacturer or supplier can transact funds with any distributor or importer around the world.
This, in turn, drives your business.
- Higher transfer limit: T/T payment makes it easy for anyone to make large money transfers.
This is a particular advantage for importers who handle bulk purchases. In turn, China can increase trade between different importers from different countries.
- Fast: Your money will be transferred to the recipient within one to four working days.
Keep in mind that this can take less than a day, making it one of the fastest money transfer methods.
The speed of your transaction depends on many factors such as distance, business hours and public holidays to name a few.
- Due to the faster transfer rate, T/T payment is less affected by international money market fluctuations.
- Also, T/T payment costs less for their services, making them one of the cheapest. This attracts many traders, which in turn boosts China's economy.
Are there disadvantages in T/T payments to China?
whileT/T paymentIt might sound pretty beneficial, but it also has its downsides, including;
- It is one of the most used payment methods by scammers and scammers.
This is probably due to the fast transaction speed.
This is not only a risk for the supplier, but also for the buyer.
- In certain cases, your transactions may take longer to process.
- The bank always charges a fee for each transaction, which means the recipient does not receive the full amount.
- If you accidentally enter an incorrect account number, you cannot reverse the payment.
When should I use T/T payment to China?
T/T payment is widely used when paying Chinese suppliers.
All Chinese banked suppliers have the T/T payment method option for their business.
Why do Chinese suppliers use T/T payment?
Chinese suppliers prefer T/T payment for the following reasons;
- T/T payment is not only safe but also secure.
- Chinese suppliers need fast payment method, so T/T payment works best.
- T/T payment has a higher remittance limit, which allows Chinese suppliers to work efficiently with wholesale buyers.
- Besides, T/T payment is easy to process for both buyer and supplier.
How does T/T compare to other payment methods in China?
There are multiple payment methods in China, some of which include;
- Credit card
- Online banking payment
- Western Union
Compared to other payment methods in China, T/T payment is processed by bank.
The supplier provides his bank details and the buyer sends all the information to his bank.
The buyer's bank then carries out the transaction electronically to the supplier's bank account.
In addition, T/T payment has a higher transfer limit compared to other payment methods.
This makes it an ideal choice for any wholesale buyer.
How do you make T/T payment to China?
Making T/T payments to China is much easier and faster than you might think.
All you have to do is contact your bank and pitch your idea of sending money to a Chinese company.
You will be asked to fill out a form.
Then make the transfer payments along with any other applicable fees.
Always ask your supplier to send themPro forma invoiceshortly.
Pro forma invoice
This proforma invoice contains the supplier's bank details, which you will need when contacting your bank for the transfer.
The entire process takes between two and four days, depending on the distance between the two targets and other factors.
The most important thing is that you always confirm that you are dealing with a company and not an individual.
Most scams are created when money is sent to individual accounts and it can take a while before you realize you've been scammed.
What is the cost of T/T payment to China?
The cost of T/T payment varies from one TT provider to another.
Most banks charge a fee of $30, which can be more or less depending on the provider and location.
On average, the cost ranges from $25 to $50.
Remember that with T/T payments, funds are transferred from one bank to another until they reach their destination.
Therefore, the fee charged includes the total amount of all banks your fund has passed through.
How to compare LC and T/T payments with China?
Compared to T/T payment, LC is also known as paymentCredit cardIs safer.
letter of credit process
This is because you will be asked to enter additional information before transferring your money.
With a letter of credit, you do not have to deposit any amount with the provider.
This greatly reduces your risks as a buyer.
LC payment is made when certain conditions are met, compared to T/T payment which does not have such conditions.
How long does it take to complete T/T payment to China?
A full T/T payment takes two to five business days.
This is highly dependent on your bank and the distance between the two targets.
Other factors such as public holidays can also delay your payment.
How do T/T payments to China and SWIFT payments compare?
Pago SWIFTIt is under T/T payment methods.
It facilitates T/T payment transaction with special codes to transfer money to receiver's bank account.
With a T/T payment, the funds go through several banks until they reach their destination.
These banks form the SWIFT network.
For this reason,By T/T processRely on the SWIFT system for fast and efficient money transfers.
What is the safest payment method when importing from China?
The safest payment methods when importing from China include: T/T, LC, Escrow, Debit or Credit Card, and PayPal.
With T/T payment, the risks are shared between the supplier and the importer.
Although,Depositprotects both parties as the money is held by the third party until you receive your goods.
This is how the deposit works
Since most suppliers in China do not fully accept the use of debit and credit cards, this is a safer method for you as an importer.
Most Chinese vendors also do not recommend using PayPal for a number of reasons.
The most important is that it offers more protection to the importer than to the supplier.
As far as PayPal can be safer for you, please also remember that the fee charged depends on the size of your transaction.
The larger your transaction, the more fees you pay.
Also, it is difficult to resolve disputes and you might end up losing.
A letter of credit is widely accepted by most providers due to the lower risks.
However, LC is suitable for bulk buyers compared to small importers.
It's a lot of paperwork. Therefore, vendors consider it inappropriate or undignified for transactions under $50,000.
What terms do you use in T/T payment to China?
Some of the terms you include during T/T payment in China include:
- T/T in advance– T/T in advance is a payment method that requires payment to be made before goods shipment begins.
- T/T 30 dia–T/Tin 30 days requires the importer to settle the full amount within 30 days of the completion of the manufacturing process.
- T/T am Anblick–For T/T at sight, importer needs to pay certain amount after receiptchange.
How do you reduce the risk of T/T payment to China?
Bank transfers are one of the most common payment methods used by scammers and scammers.
To avoid falling into such pitfalls, here are some important tips to keep in mind.
- Never pay 100% of the amount–Most buyers get into trouble after clearing all payments before manufacturing begins and then experience shipping delays.
If you pay your entire bill, some suppliers will hesitate to complete your order because they have already made all the payments.
Also, paying the full amount can cause bigger problems if you send to the wrong account.
So always make sure you only make a partial payment.
- Confirm company details before making a payment– Check the company details and confirm that the provider is the account holder.
This will prevent you from falling for scammers.
- Request the profoma invoice in advance– So you can find out about the provider in good time.
- Please pay for the samples to confirm the account is suitable. If your provider agrees to send you free samples, you can only pay for them to verify your bank details.
How to negotiate better payment terms when importing from China?
As with any buyer or importer, negotiating payment is crucial if you want to get the best prices.
Most Chinese suppliers are always willing to negotiate payment terms. To do it;
- Find the right provider first– Not all providers are willing to negotiate payment terms, so you need to identify the ones that are right for you.
- Build a good relationship with your supplier– The best time to develop a good relationship with your provider is when you don't need it urgently.
Make sure you check in frequently, answer calls and texts.
Remember, the more you interact, the more likely you are to easily negotiate payment terms with your provider.
- Make sure the payment terms are fair to both parties. You must offer a win-win solution. This gives your provider a better chance of offering better payment terms.
- ask for the most– Trading involves lowering your prices or terms in order to breakeven, so you need to start higher.
- understand business language.- Research your supplier's business thoroughly as this will help you explain to them how they will benefit from your offer.
What are the tips and tricks about T/T payment to China?
so that you can be successfult/t payment systemsome tips and tricks will be important for China.
Look at these......;
- Check everything before you start your transaction. Make sure there are no missing words and that everything is spelled correctly.
- Please enter companies with longer names in address field 1.
- Always write your company name in English on the application form.
- Always ask your supplier to send you the proforma invoice in time.
- Never pay the full amount before production starts as this may delay your order. This is because your provider does not prioritize your order as they already have the full amount in hand.
- Before making the initial payment, always make sure the provider has a clear idea of what you want to do. Otherwise, there may be significant losses.
Can you use T/T payment to China when importing from Alibaba?
If you can.
Besides PayPal and debit/credit card, T/T payment is one of the payment methods used on Alibaba.
However, you need to be very careful as several scammers are targeting T/T payment users on this platform.
Research your provider thoroughly before starting a transaction.
Is T/T payment to China safe?
T/T payment is very safe.
It offers little or no security, either for the buyer or the supplier.
Therefore, you must be careful when making transactions through T/T payment method.
Can you apply for a refund after T/T payment to China?
t/t payment system
Yes, you can apply for a refund after making a T/T payment to China.
If you realize you made a mistake with your transfer, notify your bank quickly.
However, you must do this before your money is deposited into the recipient's account. Otherwise it may be difficult to get your refund.
It's also worth noting that it can take a long time to get a refund.
What factors affect the speed of T/T payment to China?
The time it takes for your transaction to reach its destination is affected by a number of factors. Here are some of them;
- time zone differences– Sending money across different hemispheres can cause delays as it affects business hours as well.
- currency differences– Converting currencies from one country to another may delay your transfer.
- Further information– Banks sometimes ask you to verify certain information, which can be time-consuming and cause delays.
- Differences in working days– Working days vary from country to country. Although business days in most countries are Monday to Friday, some countries may have fewer business days.
This would definitely cause delays in your transaction.
- the destination country– Some banks have yet to address current money transfer trends.
Some use older systems that are slower and therefore cause lag.
- public holidays– Most if not all shops remain closed during the holidays. Sending money on these occasions would cause delays.
- Finally, please note that some payment methods take longer to process than others.
Therefore, your transaction may be faster or slower depending on which you choose.
How does Chinese company check before making T/T payment to China?
Ensuring that you are dealing with a verified supplier is an important factor that any importer should consider.
This shouldn't be a nuisance anymore; Here are some ways you can easily verify the Chinese company before starting your transaction.
- Make sure the account details are from the company. People are often fooled by people posing as a company.
When dealing with a company, confirm that the account information belongs to the company and not an individual.
Company accounts have names like Wenzhou Hengyi Bag Co. Ltd, while individual accounts have names like GU YU.
- Confirm that the business location matches the bank location.
For example, if you are sending the payment to a company in Beijing, the bank must also be in the same location, Beijing.
- Also, the company you are dealing with must be the same company you are making the payment to.
Sometimes vendors will give you a different company name to make the payment, so you need to be extra careful.
Are there any scams in T/T payments to China?
Yes, you may get scammed on T/T payments to China.
To avoid falling into such a solution, always make sure you have researched your provider properly.
Also, make sure you are dealing with a verified provider.
What details do you need to make T/T payment to China?
To make a T/T payment to China, below are some of the most important details you should have;
- Contact details of the recipient
- Beneficiary bank details (name, address, BIC/SWIFT code)
- Supplier Business Information
- amount to be transferred
- The payment currency
What can you do if you fill in the wrong information when making the T/T payment to China?
The first thing you can do is contact your bank and inform them of the error.
They allow you to make corrections if necessary and then fix the problem on your system.
However, this may delay your payment.
Your bank needs to track your transaction and depending on the complexity, you may also need to spend extra money for this process.
If a supplier cancels the order after making a T/T payment to China, what can he do?
There is no reason to worry too much. If a supplier cancels your order, contact your bank as soon as possible.
If the money has already arrived in your provider's account, it cannot be reversed.
However, you can still contact your provider who can best help you get your payment back.
Can you make T/T payments to China in Chinese Yuan?
Yes, you have the option to choose the type of currency you want to use when making the T/T payment.
This can be USD or Chinese Yuan.
Can T/T payment be used on AliExpress?
However, the following should be noted:
- Beneficiary account number must begin with (026…).
- Pay with USD only
- For Boleto payments, it takes about 7 business days for the payment to appear
- For a single payment, the amount must be greater than or equal to $20
What is the best way to pay Chinese suppliers?
There are multiple ways to pay your Chinese suppliers at your convenience.
Below are some payment methods you can use.
1) International bank transfer
international bank transferin a simple bank-to-bank transfer.
It is the most commonly used payment method as it also serves as proof of a vendor's legitimacy.
It's also more secure because banks do background checks before anyone opens an account.
In addition, this payment method reduces your risk.
For example, you can have your bank pay half of the money as a deposit and the balance after your product is inspected and shipped.
2) Telegraphic transmission
It is also a bank transfer and is the preferred payment method for most Chinese providers due to relatively low bank fees.
what's moreTT paymentis an internationally used payment method that guarantees suppliers fast and secure payments.
On the other hand, the risky nature of this payment method means that providers only prefer it if they have previously done business with you.
Even a small mistake in filling out the required paperwork can result in the Chinese bank withholding the money.
This can lead to late payment and consequently delays in the delivery of your products.
3) Letters of credit
If you are a large company and want to place large orders that incur high fees, this payment method might be ideal.
Here your bank assures your provider that you will make the payment by letter of credit.
However, you must pledge your bank guarantee.
In addition, the bank will include its commission in theCredit card.
This payment method involves a trusted third party that receives payment from the buyer on specified terms.
For example, if the conditions are met, the goods will be safely delivered to the buyer; the third transfers the money to the seller.
When trading with the Chinese, Alibaba offers 'Trade Assurance, which is similarcustody services.
However, many Chinese providers do not use this payment method.
Also, as a buyer, you are restricted to only trade with suppliers listed on the Alibaba platform.
You may have used PayPal for your financial transactions at some point.
PaypalIt is mainly used for single transactions, for small orders or when buying samples.
Although it is a quick financial transaction method, it is expensive as it charges a percentage of the amount to be transferred and a currency conversion fee.
Also, PayPal is less accepted in China.
Also, PayPal exempts buyers from fees but charges suppliers.
The providers, in turn, pass the cost on to you, increasing the amount you pay.
transferIt is an internationally recognized means of payment.
This method is quite easy to use.
You start by signing up, pay in your local currency, enter your provider's bank details and the provider takes your payment in your local currency.
7) Pay through sourcing agents
You are probably not in China when you buy products from a supplier.
If you use the services of asupply agentTo get the best provider, you can also pay the provider using the same agent.
If the sourcing agent is trustworthy, paying your supplier on agreed terms can also be an affordable option.
8) Western bond
This is a global payment mechanism and is known to many.
However, it might not be the payment method you should use as it doesn't offer any real payment protection and also has quite high fees.
Suppliers rarely transact through Western Union.
If a supplier asks you to pay through Western Union, that could be a red flag.
Payment options on Alibaba
What payment terms do Chinese suppliers use?
Some providers may tell you that there is only one payment term (100% prepaid), don't be a victim.
There are several payment terms.
Mainly Chinese suppliers use the following payment terms:
100 % T/T Prepag
Newcomers to the import business often fall for this payment deadline. It is not recommended to use this payment term.
This means that you pay the supplier the full amount in one go, even before production begins.
The disadvantage of this type of payment terms is that the supplier can delay their delivery, send inferior products or, in the worst case, not ship the products at all.
After all, you have already paid the full amount.
You as the buyer bear the full risk.
30% TT deposit, 70% TT payment after passed QC inspection.
Using this term reduces the risk for buyers and sellers to a certain extent.
However, it is important to note that the 30% is a non-refundable deposit to the seller.
As for the 70%, you pay immediately, your carrier confirms the quality of your shipment, and the products meet your established criteria.
This means you must use the services of a reputable carrier or risk receiving less than you paid for.
20% TT deposit, 40-50% TT payment after production and after QC inspection, 30-40% TT after delivery at buyer's place
Here's the real deal.
Unlike in the previous period, you still have an influence on the supplier after the quality control.
When your products ship, you still owe the supplier 30%.
You only pay the remaining 30% after the goods have arrived safely in the country and you verify them yourself.
This term guarantees you quality products.
This period is highly recommended if your provider agrees to it.
Payment 100% TT (2 months after shipment, no deposit)
Although rarely encountered, this term occurs between buyers and suppliers who trust each other; and trade or intend to trade together for a long time.
This method is beneficial to you as a buyer, but may limit your transaction to just one supplier.
· Letter of credit (L/C)
If you ship many products, say more than USD 30,000, L/C is recommended.
Although many providers do not accept this, this payment period relieves you of any responsibility.
Your bank will contact the supplier's bank through solicitors from both banks and issue a letter of credit for the goods you have purchased.
However, you must be willing to pay high bank fees and provide collateral to the bank.
It is important to note that all of these payment terms are subject to negotiation between you and the Provider.
Therefore the conditions may vary.
For example, you can pay the vendor a deposit of less than 30%.
Do Chinese suppliers require payment in advance?
Depending on the payment term you use, you may be required to make an upfront payment in the form of a deposit.
It is important to note that in some cases the advance may not be refunded.
In most cases, the advance is used to purchase the materials used in the manufacture of the goods you have ordered.
What does TT 30 days mean?
TT 30 days means TT payment is made 30 days after the bill of lading or acceptance date.
Commonly known as "Net 30", the seller gives the goods to the buyer on credit with the condition that the buyer pays the full amount within 30 days.
This includes holidays and weekends.
Is T/T payment on Alibaba safe?
Payment by wire transfer is relatively safe on Alibaba.
After signing up for Alibaba.com payment terms, you only need to pay about 30% deposit while the remaining 70% will be paid within 60 days.
The 60 day grace period gives you the benefit of paying the full amount after verifying that the products have been shipped from the supplier.
The small deposit in advance and the balance payment later minimize the buyer's risk and ensure the security of the T/T payment made.
What is the cheapest way to pay Chinese suppliers?
Chinese providers attribute the telegraphic transfer payment option to cheap bank fees.
You can also choose TT payment to pay your Chinese suppliers cheaply.
Alternatively, you can compare the transaction costs of other payment options such as PayPal, escrow and sourcing agents. After your comparison, choose the cheapest but most convenient option.
How does Alibaba Secure Payment work?
Be happy, a subsidiary of Alibaba Group, supports China's largest external online payment service provider: Alibaba Secure Payment.
Below are the steps on how it works, starting from the moment you place your order.
- Visit the Alibaba website.
- Search for a secure payment provider in the search bar and connect with them.
- Make your money order secure by receiving a money order from the seller or by clicking Buy Now.
- Confirm your order by checking the order list or detail page.
- Proceed to checkout, click Pay Now and select your preferred payment method.
- Finally, if you are satisfied after the delivery of the ordered products, you can confirm that you have received your order.
- However, if you are not satisfied with the products delivered, you can contact the supplier or "open a dispute" to request a refund.
- A refund will be credited to your account within 7-10 business days.
As per the steps, Alibaba Secure Payment guarantees the safety of your money and ensures you receive the products you ordered.
How to reduce the cost of T/T payments to China?
You can lower your money transfer costs to China by exploring alternative T/T payment options.
That is, get away from banks or find the cheapest bank commissions.
Banks often charge fees that make T/T payment quite expensive.
These costs include: the sending bank fee, the intermediary bank fee, the exchange rate surcharge and the receiving bank fee.
The exchange rate markup is the margin that your bank adds to the prevailing exchange rates.
You can reduce these costs by researching market exchange rates and comparing them to those at your bank.
If the range is small, it means the cost is lower.
Alternatively, you can also check other providers that offer T/T payments to China in addition to banks.
Can you make T/T payments to China in your local currency?
You can send money to China in your local currency or in Chinese yuan.
However, paying in Chinese yuan is likely to be cheaper for you and more convenient for the vendor.
With the first option, you pay an exchange rate surcharge, which can increase payment costs.
Should I make T/T payment to China to supplier's private account?
It should be noted that payment by wire transfer can only be made to the official account of the provider company.
It is not advisable to agree to a transfer to someone else's personal account as it is easy to open an account and collect the money in China.
Please note that Mainland Chinese companies need to request payment to their bank accounts in Mainland China.
For example, a Hong Kong registered company must give you the address of a bank in Hong Kong, not in Shanghai or Beijing.
You can conduct a background check with local Chinese banks to limit your risks and ensure you are dealing with a reliable provider.
What if the supplier asks me to make a T/T/ payment to China to another company's account?
A Chinese supplier may ask you to make a bank transfer to another company's account for reasons they know better.
However, complying with such a request may put you at risk if the deal is not fully honored.
Your payment will not be matched to your provider details.
However, you can require both companies to sign a statement stating that the provider has hired another company to collect the money.
In addition, it performs other functions that facilitate the delivery of the goods you have requested.
I am sure you can make T/T payment to China safely with this information.
Should you still have any questions, please do not hesitateContact the BanSar team, We're here for you.