May I have the detailed information about payment methods?
Recently I discovered that for a great number of small transactions - a few thousand - Western Union is much cheaper, easier and way faster ($14.00). You can send a payment to China in the afternoon and they receive it within minutes and ship that night.
I have made 2 payments in the last week by PayPal. This seems very new. Two sellers added this as an option for payment - they both asked for a small premium to do this but it was cheaper than the bank and I never left the chair.
I hope this was what you wanted. Best of luck!
David
LC only acceptable for big amount like about $10k, most of payment is by T/T in China.
and there is no other way acceptable.
But you can do something to avoid lossing money:
1. ask people who supply service for verify compnay.
2. Send one to inspect the goods before shipment.
these two ways would cost you a little money, but can ensure you get the right goods that you paid.
Quoting from [kimia polyester]:
May I have the detailed information about payment methods?
Open Account
Goods are shipped and documents are remitted directly to the buyer, with a request for payment at the appropriate time. An exporter has little or no control over the process.
Advance Payment
The most secure method of trading for exporters and least attractive for buyers. Payment is expected in full, prior to goods being shipped.
Bills for Collection
The exporter's documentation is sent from a bank to the buyer's bank. This occurs after shipment and contains specific instructions. The buyer's bank acts on instructions provided by the exporter, via their own bank, and provides communication route through which disputes are resolved.
There are two types of Bill for Collection, which are usually determined by the payment terms agreed within a commercial contract. Different benefits are afforded to exporters by each and they are covered in my next Post
END PART ONE
Quoting from [kimia polyester]:PART TWO
May I have the detailed information about payment methods?
Documents against Payment (D/P)
Usually used where payment is expected from the buyer immediately, otherwise known as "at sight". This process is often referred to as "Cash against Documents".
The buyer's bank is instructed to release the exporter's goods only when payment has been made.Documents against Acceptance (D/A)
Used where a credit period (e.g. 30/60/90 days - 'sight of document' or from 'date of shipment') has been agreed between the exporter and buyer. The buyer is able to collect the documents against their undertaking to pay on an agreed date in the future, rather than immediate payment. The exporter's documents are usually accompanied by a "Draft" or "Bill of Exchange" which looks something like a check, but is payable by (drawn on) the buyer. When a buyer (drawee) agrees to pay on a certain date, they sign (accept) the draft. It is against this acceptance that documents are released to the buyer.
Quoting from [kimia polyester]:PART 3
May I have the detailed information about payment methods?
Letters of Credit (L/Cs)
A Letter of Credit (also known as a Documentary Credit ) is a bank-to-bank commitment of payment in favor of an exporter (the Beneficiary), guaranteeing that payment will be made against certain documents that, on presentation, are found to be in compliance with terms set by the buyer (the Applicant).
Like Bills for Collections, Letters of Credit are governed by a set of rules from the ICC. In this case, the document is called; "Uniform Customs and Practice" and the latest version is document number 600. In short, it is known as UCP600 and, again, over 90% of the world's banks adhere to this document.
Irrevocable: The terms and conditions within a L/C cannot be changed without the express agreement of the Beneficiary. Under UCP600, revocable L/Cs are no longer acceptable under any circumstances.
END PART 3
Quoting from [kimia polyester]:PART 4
May I have the detailed information about payment methods?
Unconfirmed: The payment commitment within the L/C is provided by the Applicant's issuing bank.
Confirmed: If an exporter has any concerns about the circumstances which may prevent payment being made from either the Issuing Bank or buyer's Country, the adding of "Confirmation" moves the bank/country risk issues to the bank which adds its confirmation (the confirming or advising bank) and notifies the DC to the exporter. The price of such a confirmation will obviously depend upon the level of perceived risks to be covered. Banks can often provide indicative pricing for confirmations prior to the arrival of the DC, so that costs can be estimated.
The exporter and buyer can agree detailed terms, as part of the commercial contract. This can include exactly what documents need to be produced and precisely what detail such documents should quote. Letters of Credit, as well as offering a bank's commitment to pay, also offer benefits in terms of finance. Speak to your bank, or the Advising/Confirming Bank to see how they can help. Additionally, commercial insurers usually now offer an insurance-backed product that covers the same basic risks as confirmations.
END PART 4
Quoting from [kimia polyester]:PART 5
May I have the detailed information about payment methods?
Standby Letters of Credit (SBLCs) or Bank Guarantees
SBLCs are similar to Bank Guarantees, in that they sit behind a transaction and are only called upon if the buyer fails to pay in the normal course of business (which is often Open Account). They can be particularly useful to cover an underlying financial risk where multiple payments are to be made, possibly as part of an agreed schedule. However, they do not offer the documentary control of Letters of Credit to buyers and, as such they are an unconditional guarantee.
end part 5 (Alibaba places maximum character limits so I had to split the posts to get you the detailed information you requested into the post)END PART 5
Quoting from[kimia polyester]:PART 6
May I have the detailed information about payment methods?
Main Types of Money Transfers
SWIFT Inter-Bank Transfer - now firmly established as standard practice in the major trading nations. The buyer will instruct their bank to make payment to any account specified by the exporter. It is good practice, therefore, for the exporter to include their account details on their invoice heads.
Buyer's Check - an unsatisfactory method of settlement for the exporter as it carries the risk of dishonor upon presentation as well as the added inconvenience of being slow to clear. There is also the very real danger of the check being lost in transit as well. A check is also unsatisfactory if it is in the currency of the buyer, as this will take longer to clear and will involve additional bank charges. Exporters should only use this method if they have an established trading history with their customer or in cases where the profit margin has been increased to offset cash flow problems anticipated by the delay in receiving payment.
END PART 6