Typically, all payment methods are safe.  But only the buyer can define what is safe for their transaction and what assurances they require for their investment.  If you know your supplier and have a good relationship with them W/U, T/T, D/P, Escrow.com, and L/C are all safe.  If you do not know your supplier and have no relationship then I'd opt for the last two.  Escrow allows you to inspect the items before payment is released, and the L/C requires that specific douments will be presented before the release of any funds.  For companies doing smaller buys I suggest that fees would be better via escrow.com and for large PO's the L/C will be the best.  In any case you must not only research the company supplying you the goods but also the payment method.  For L/C their are different types that may be more beneficial than others per your company requirements and I suggest that you visit your bank and their International banking department to discuss all aspects of the L/C.

So when, individuals ask what is safe no one can really reply as they have no insight into anyone elses business nor their requirements for trust and security of funds.

Ranger

Replying to [ModernClassicJasonLee]:
Yes I agree much better than use Escrow

Regards

Replying to [BUMshells]:

I am in complete agreement with you on this. Especially a few of your comments which I repeat:

(1) "basically we need third party to be the middle man (to manage the payment system),

(2) I don't say L/C is the best, and there are many kind of L/C that must be selected as needed to compile both parties consignment. Fundamentally. but as far as the world of trade goes, L/C is the most used.

(3) We cannot differ big or small value of transaction in the term of safely payments. They are the same."

Brilliant observations. I wish I had writtent them! But will steal them now for my other articles !

I only wish people understood and appreciated the significance of these observations. Many of their problems would have been solved, many questions answered, if they did. Further arguments would then be unnecessary.

I just wish to add my tuppence worth.

(1) The referee or the third party (or the middleman) should be chosen with great care.

(2) It is important to understand the mechanism. Blind application of even the best method would not produce the results one desires.

(3) See point (1) above.

Replying to [Nugroho Matair]:

Small or big, a loss is a loss is a loss. Secondly, escrow is not the best, nowhere near it. It has many flaws, many risks. How do you know, for example, that the guys who run the show are above-board, transparent, backed by law etc.?

Stick to the time tested. Know your methods (of payment) and your party.

Replying to [Catalyst]:
Replying to [Nugroho Matair]:

Small or big, a loss is a loss is a loss. Secondly, escrow is not the best, nowhere near it. It has many flaws, many risks. How do you know, for example, that the guys who run the show are above-board, transparent, backed by law etc.?

Stick to the time tested. Know your methods (of payment) and your party.


I am totally 100 % agree with your opinion "Secondly, escrow is not the best, nowhere near it. It has many flaws, many risks."

Majority of us from east countries think same.
I have a full confidence that "Safe Payments" will be locked by ????? like the other opinions

Best Regards
Nugroho M

hi everyone can you plz give me a advise " a customer give me a order and told me that i will pay cash against document method .it is the 1st order of my business life.it is a trial order and he also want that use my brand name on product."
can you peoples tell me what should i do ?

how about buying from a trust pass china member, my gold supplier is in its second year ..

Replying to [salman861]: sorry i think i miss understood, he gave you and order and has stated how he will pay.
when i shop for goods, i ask how the payment should be made and then i look at my options.
think of this way, look at ebay and how may types of payment can be made,
you should give him a choice of payments that are acceptable to you, he will choose one, but if he will only pay you one way only, BEWARE.

Replying to [Ranger]:
Dear Ranger,

Need yr assistance, say if buyer does not know seller well and is requested to open irrevocable LC for 2mil's order and trade term is ex-factory. Documents required in LC (by seller) is i) Signed commercial invoice in 3 copies, ii) Packing list in 2 copies iii) Certificate of origin in 2 copies. In view of the abv, buyer is buying at risk. Pls advise how to propose LC term to protect buyer? Seller is a steel mill and this is first time deal between buyer & seller. Buyer is required to arrange own pick up by forwarder.

Awaiting for yr reply.

P/s: Trade term ex-factory & LC irrevocable is firm for this order. This is also sole source for your information (unique size required mill to produce)

rgds,

John Junor

Quoting from [john junior]:


Replying to [Ranger]:

Dear Ranger,


Need yr assistance, say if buyer does not know seller well and is requested to open irrevocable LC for 2mil's order and trade term is ex-factory. Documents required in LC (by seller) is i) Signed commercial invoice in 3 copies, ii) Packing list in 2 copies iii) Certificate of origin in 2 copies. In view of the abv, buyer is buying at risk. Pls advise how to propose LC term to protect buyer? Seller is a steel mill and this is first time deal between buyer & seller. Buyer is required to arrange own pick up by forwarder.


Awaiting for yr reply.


P/s: Trade term ex-factory & LC irrevocable is firm for this order. This is also sole source for your information (unique size required mill to produce)


rgds,


John Junor

If Exworks is how they want to do the deal then I would open the L/C with a soft clause that states that goods must be available to be inspected by the buyers representative on a specified date and time prior to being picked-up or on the date of pick up by the buyers chosen freight forwarder and that the inspection approval must be submitted with the documents with signatures by both the inspector and the sellers representative.  Make sure though before you open the L/C that the seller will comply with the soft clause, so that you are not out the money to open the L/C or to ammend it later.

Ranger

Replying to [Ranger]: Dear Ranger,
Can the inspection doc. be a simple format of letter like "We hereby inspect & confirm that the specification is complied to our requirement...., then follow by buyer & seller's rep. signature?". We hv proposed to seller to amend the LC by adding inspection certificate but they are reluctant to accept this request. On the other hand, we are in dire need of their materials also as they are the only manufacturer who can meet our required spec. & delivery deadline. I can only check their background through web page. I hv also written to their embassy & our embassy in their country to find out more info abt ths company. What else i can do ? Pls advise.

Thank you.
John Junior