by Tekle Sebhatu
Question:
We are a small retailer in the U.S. looking for suppliers in China, but most of them will only do payment through Western Union or Bank Transfer. Is this normal? How can I reduce my risk of fraud?
Answer:
Dear Kicks: Whether it is normal or not depends on the type of business relationship that you have with your supplier. Western Union, Money Gram and First Data Corporation are all reputable financial services companies that provide service to send or receive money around the world. If you have any doubt on the legitimacy of the supplier then consider your other options including finding another supplier. It all has to do with how confident you are in your supplier and not how the money is transferred. Focus on building trust between you and your supplier and not which institution will transfer the funds, which I think is secondary.
By keeping you eye on the ball (supplier) and not on the messenger (money transferring organization) can certainly help reduce your risk of dealing with fraudulent suppliers.
Re: Re: Re: Re: Supplier requests payment through Western Union or by bank transfer only!
by ozsurf on 22 Mar 2006 16:26
Replying to [johnleo]:
ALIBABA is looking into it as we speak.
Re: Supplier requests payment through Western Union or by bank transfer only!
by rocky3 on 19 Oct 2006 15:31
Replying to [Resources]:My advise would be, if a company ask for payment through western Union. plaese don't deal with them. You will never get your goods. WU transfer method is not for business purposes. Only the Fake companies ask for such payment. WU will not help you in anyway if the deal goes wrong. I recently lost some money paying through WU, to a company selling Sony PSP through Alibaba.They will even send you a tacking number and a fake shipping company web site link to cheat you.TT transfer is the better way to do transections so you will have the sellers bank details.
Re: Supplier requests payment through Western Union or by bank transfer only!
by keny on 25 Jul 2007 11:13
Replying to [Resources]:As known to all,WU is not safe at all.If you have a friend in China,it'll be much safe for you to collect the goods.
Tt (telegraphic transfer), * bill etc. vs. lc (letter of credit)
Author: Catalyst
Back to back letters of credit
Author: Catalyst
The original LC and the one issued against it are independent. See how it works.
