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How To Pay On Alibaba Payment : Ultimate Guide 2020

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Shipping goods from alibaba by sea is recommended when orders is huge and not urgent.

Alibaba Air Freight Shipping from China

Air Freight Shipping from China

If you need your products a little urgent, you can use air freight with high cost. Its the fastest freight solution.

Alibaba Rail Freight Shipping from China

Rail Freight Shipping from China

Ship by rail is best for your large volume of alibaba orders over greater distances from China

Alibaba Door to Door Shipping from China

Door to Door Shipping from China

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Alibaba is an online business platform widely used by manufacturers, retailers, distributors, and wholesalers for selling and purchasing different goods.

This platform acts as a bridge between two parties for making a business deal for different products for varying quantities.

A secure business deal is a common problem for any online business, and most buyers show their concern about it.

There are different risks associated with online businesses like fraud and receiving of faulty or partial goods.

Different online payment methods are available to pay on Alibaba, like PayPal, debit/credit card, wire transfer (TT).

PayPal is the most secure payment method because it includes all the security features that other offers and, additionally, its support to open a dispute in case of any problem.

However, Alibaba doesn’t provide any significant support for you as a buyer if the goods received are not as per specifications or received late.

The supplier is liable to pay only 5%, and the remaining is covered by the buyer.

Is It Safe To Pay On Alibaba?

Well, “Yes, it is safe to pay on Alibaba.”

There are strict rules and regulations for both suppliers and buyers to keep the transactions secure and safe.

Alibaba is an online platform that offers its services to connect the parties and intervene only in case of any party commit any misuse.

But it is important to perform your research about the supplier.

Different methods are available to check the worth of suppliers like Alibaba verification, a number of previous transactions, reviews from previous deals, etc.

Best Alibaba Payment Methods You Should Now

Various payment methods are available on Alibaba that you can use to pay suppliers.

The following is a brief introduction to all the payment methods.

1. T/T Upfront Bank Transfer

It is the most insecure method for making payments to suppliers, and you have to make complete payment before receiving or dispatching goods.

We recommend you only use this method if the supplier is trustable. You can lose your money if you make a deal with a scammer.

Usually, people visit Alibaba.com to find the appropriate supplier and manufacturer.

After finding the desired person, they practice communicating with the supplier or manufacturer somewhere else.

Therefore, it increases the risk of fraud for both suppliers and buyers.

Dealing with suppliers or buyers out of the platform is just like to contact the supplier you meet on a trade show.

There is no guarantee for both parties until unless they have a strong relationship.

Pros:

  • Operate internationally
  • Easy to transfer
  • Low time period
  • Low charges

Cons:

  • High risk of fraud

What is the procedure of bank transfer?

If you want to make a payment to the supplier through bank transfer, you have to collect the following information from the supplier.

  1. Beneficiary
  2. Complete address

Bank account details

  1. Bank address
  2. Swift code
  3. country

Usually, bank transfer process payments in US dollars if you are dealing internationally, and it takes 2-4 working days to complete the process.

How To Avoid Payment Fraud

The better way to transfer money is to use escrow.com services. But if you want to make it through bank transfer, you must ensure that the beneficiary company is listed on Alibaba.com.

Never transfer the payments to a country other than the company belongs.

Avoid transferring money in the account that shows different titles other than the manufacturing company because someone else can own it, and the supplier, later on, refuses to accept that payment.

2. Secure Payment (Escrow)

For processing the payment from debit/credit card, Alibaba uses Alipay to complete the payment process.

It is one of the most secure Alibaba payment methods because of its priorities the buyer satisfaction.

The benefit of using this method is that it can keep the payment in escrow until the delivery of products to you.

This payment method not only ensures the security of the buyer but also provide payment assurance to the supplier.

As we mentioned, this method holds the payment of suppliers until clearance from the buyer side.

But in case, the buyer refused to accept goods due to low quality and rejected the shipment. He has to provide sufficient proof of his rejection reason.

Therefore, this method is designed to keep in mind the rights of both parties. This method is useful to reduce the risk present due to a long time between ordering and receiving the goods.

But this method is normally used for transactions within China. At the international level, the acceptance of this method is low.

· How Does It Work?

This method offers a simple payment process. After the finalization of the deal, you can log in to the account in escrow.com and enters all the required details about the deal.

For example, you have to enter the contact number, email id, transaction information, inspection time, and currency for transactions.

After putting the information, you have to move forward towards payment, which escrow.com will accept.

It will hold the payment till acceptance and clearance of goods by you.

· What Are The Payment Options In Escrow.Com?

Escrow.com uses multiple ways or methods for receiving the payment from buyers. It includes PayPal, Bank Transfer, Credit card, Check, and Money Order.

After accepting the payment, escrow.com uploads it on the website and ensures the safety of payment to the supplier.

These funds are released after launching of shipment, received and accepted by the buyer.

Pros:

  • Trustable
  • Low cost
  • Security for both parties

Cons:

  • Lengthy process

How To Use Debit/Credit Cards In Escrow.Com?

If you want to make payment to escrow.com by using a debit/credit card, you must know about the rules.

Just create an escrow account and put all the information on the deal, and read the following instructions.

  • com only accepts the payments from the following cards, Master Card, American Express, PayPal, and Visa Card.
  • Stock must be delivered on the confirmed address.
  • Credit/debit card payments are protected using SSL technology, and the information is encrypted to ensure the security of information.
  • Credit/debit card payment requires additional fees, and you can’t make the payment of more than $5,000 until unless escrow.com approved it.
  • A credit/debit card requires three working days to update the payment into account.

3. Alibaba Payment Links

Alibaba not only helps to find the supplier or manufacturer but also helps you to complete the payment system in easy and simple steps.

The payment system on Alibaba is mostly used by the buyers to complete the small transactions. You can use this payment gateway to complete the order but also can use it to pay for the sample as well.

This system allows the supplier to generate the invoice from its account on Alibaba. As the supplier generates an invoice, a payment link is created automatically. This payment link is useful for a limited time and expires automatically after 72 hours.

Therefore, buyers need to complete the payment process at a specific time. This method is not only popular in China; also, the people from around the world use this method widely, especially to order samples. Later on, they can use the same or other methods for making payments for large deals.

What Are The Benefits Of Alibaba.Com Payment Links?

Besides the simplicity of this method, it offers many other benefits, especially for buyers. The following are the few benefits of this method.

  1. Ensure The Payment To Right Person:It is beneficial to ensure that the payment is received by the supplier in its account. It eliminates the risk of fraud by an employee of the company or contractor etc. Most importantly, the transaction is held through Alibaba.com, which provides assurance for the completion of an order.
  2. Low Transaction Fees:The fees charged by Alibaba.com are very minimal as compared to other ways of transfer like a bank transfer.
  3. Instant Update:The transaction is updated in the account of the supplier on an immediate basis, and the supplier will dispatch the goods similarly.

4. Alibaba Pay Later

Alibaba.com is a platform that is designed to facilitate users from around the world. Alibaba introduces its later pay program, especially to facilitate the US importers.

In this method, US importers can apply for trade finance. It is a simple and quick method, and you can get the results in just a few minutes.

The main purpose of this option is to enable you to make the deal on a real-time basis and make payment later on as per decided terms and conditions. Funds received from trade finance are used to place an order to any supplier listed on Alibaba.com.

However, this type of fund is limited up to a certain extent, and importers can gain the maximum fund of $150,000 after completing certain conditions.

If you are a US importer and apply for the fund, then you also have to pay a fee for this service that falls in the range of 1.25% to 2.75% depending on various conditions that you can check on the official website of Alibaba.com.

Furthermore, you have to refund the amount along with charges as per the described payment refund plan. This plan comprises one to six months, depending on the mutual understanding at the time of agreement or funds approving.

However, this facility is not available to everyone. But, you can enjoy this opportunity if you fulfill the following criteria.

  1. The company must be registered on Alibaba.com for at least one year. If the registration period is less than it, it is not available for you.
  2. You must be a nationality holder of the US or live in the US as a permanent resident if you belong from another region or country.

5. Alibaba Online Transfer

However, unlike funds support for US importers, Alibaba.com doesn’t approve it for importers from other regions or countries. But it launches some other useful features or options for importers from Europe.

Alibaba.com facilitates importers from Europe with a simple and quick payment gateway. It is known as an online transfer. This payment method allows you to make transactions and deals in different currencies.

You can enjoy this feature if you are a resident of any of the following countries.

  • United Kingdom
  • Ireland
  • Netherlands
  • Finland
  • Switzerland
  • Estonia
  • Germany
  • Spain
  • Italy
  • Poland
  • Belgium

a) Transaction Fees

However, this service is very beneficial, but it is not free of cost. You have to pay the fees as per the fee chart designed by Alibaba.com. Although these are nominal charges, you have to pay that if you want to use this service.

It requires an additional $15 if you want to make a deal up to $1,000. $20 if the transaction falls in the range of $1,001 to $10,000.

For more than $10,000, the flat rate of $25 is applied irrespective of the total deal amount.

6. Paypal

However, this platform is not officially supported by Alibaba, but it offers some options for making business deals like “Goods and Services.” If there could be any problem with the delivery of the specifications of products, you can cancel the transaction and get back your money.

PayPal is one of the most common payment methods used around the world for transferring funds. The primary purpose of its popularity is that it simple, secure, and instant funds transfer options.

As we know, Alibaba.com is a chines based platform, and this payment method is also accepted widely in china along with other countries.

But its popularity falls just behind the Alipay. The reason behind this is that it requires additional charges that range from four to five percent of the total transaction amount.

If you want to make a payment to a supplier by using this method, you have to bear additional charges. The supplier is not responsible for paying any additional amount. Usually, this method is mostly used to complete small business orders or for paying against samples.

However, it provides a much secure method even if you want to make payments for large orders. It is useful to make payments specifically to suppliers with low order history or new on Alibaba.com.

But you have the option to switch for another low-cost method if you build a strong relationship with the supplier.

How Does Paypal Works?

For making the payments to suppliers through PayPal, just enter the details like contact number and email id. Type the amount in the field, review the payment details, and click the send button.

However, for business transactions, it offers a new feature that provides the option to bring back the money in case goods are not as per specifications described in the order form. But for bringing back money, you have to provide sufficient evidence against the supplier.

Pros:

  • Accepted worldwide
  • Protection against fraudulent activities
  • Multiple options for depositing the amount in PayPal account through credit/debit card
  • A quick way of transferring the amount
  • No extra charges for suppliers

Cons:

  • High charges on the transaction

Tip:

If you have a plan to make payment using this method, then inform the supplier about it at the time of negotiation.

It does not help to create chances to transfer the burden of the charge on the supplier, but also eliminate the risk of refusal from the supplier at the time of payment.

If the supplier doesn’t want to accept this method, you can change the supplier or payment method as well.

What Is The Safest Way To Pay On Alibaba?

Alibaba is committing to making equal opportunities for both suppliers and buyers. To fulfill their commitment, Alibaba.com offers various safe and secure methods for payments along with order completion support.

The following are the few methods that provide assurance for accurate order completion.

· Alibaba Trade Assurance

Alibaba.com introduces a trade assurance service to facilitate both supplier and buyer. In this method, you can transfer the funds directly to the bank account of Alibaba.com.

This bank is based in Singapore, and all the funds are remaining in this account until unless the shipment is delivered to you.

This not only ensures the quality of goods, but it also ensures to reach the goods at your place at a specified time.

How Does Trade Assurance Work?

The trade assurance helps the buyers to get a refund in case,

  • If the goods supplied are not as per specifications
  • The goods are not delivered on time

For enjoying this feature, you have to follow some below mentioned instructions:

  • Make a deal with trade assurance suppliers only
  • Make payment through the suggested platform of Alibaba.com
  • Provide complete order specifications in terms of quality and quantity
  • Arrange a pre-shipment inspection.

In case of any dispute, Alibaba.com arranges a third party for inspecting the goods. In the case of goods delivered not fulfill the criteria, the buyer will get a refund.

Pros:

  • Doesn’t charge extra
  • Complete refund option
  • Buyer satisfaction

Cons:

  • Lengthy process

FAQS About How To Pay On Alibaba

· What forms of payment does Alibaba accept?

Alibaba.com accepts different types of payments like credit/debit card, Bank Transfer, Alipay, online transfer, escrow, and a few more.

· Does Alibaba is liable to refund my money if I receive defective or the wrong items?

Yes, only if you used a secured and recommended method like Alipay and trade assurance option. Before making a refund, Alibaba arranges a third party inspection of delivered goods. If the supplier is found guilty, a complete refund is available for the buyer.

· How do I win a payment dispute?

For winning the payment dispute, you have to prove that the goods supplied are not matched as per order’s specification in terms of quality, received damaged goods, or in less quantity.

· Can I pay for the goods on Alibaba.com by Letter of Credit (L/C)?

Yes, you can use this method, but it is not recommended for small orders because it requires a lot of paperwork. However, this method is mostly used for the payment of large amounts of orders.

· Is it safe to pay for goods on Alibaba.com via Western Union?

Yes, Alibaba.com supports this payment option. But Alibaba.com doesn’t take any responsibility if the payment is made to the supplier directly other than the Alibaba platform.

· Can I pay with PayPal on Alibaba?

No, Alibaba.com is not supporting this platform officially. However, this method remains part of official payment methods. But due to huge charges, this method is dropped after some time of inclusion.

· Is it safe to pay for goods on Alibaba.com via PayPal?

This method is usually used for small order payment or against samples. This payment method offers a secured option of payment for sale and purchase that is useful to ensure the security.

· Is it safe to use a credit card on Alibaba?

Yes, you can make payment through your credit/debit card but only as per instructions to ensure safety.

· Is T/T payment safe on Alibaba?

Alibaba.com is integrating the payment with the T/T method and allow the buyers to use this method as well.

· How to pay on Alibaba using PayPal for samples?

Alibaba payment link feature is the best option to pay for the samples. However, you can also use PayPal to make payment for samples.

Leeline Sourcing Can Help You Pay Suppliers On Alibaba More Safely

Leeline sourcing provides services for inspection and transportation to buyers who want to make purchases on Alibaba.com. This company helps you to make a pre-shipment inspection of goods you order on alibaba.com.

This company offers the services of experienced quality checking team that ensures the quality of the product as per specifications on order.

In this way, you can get the right quantity, and it will also ensure that the products are in good condition. It will also help to eliminate the risk of damage goods and saves your time and cost for shipment.

Moreover, this company offers shipment services at a low cost by managing the orders of different products in the same shipment. You can save up to 70% of shipping charges by using the services.

Conclusion

Alibaba.com is an excellent platform that gathers the suppliers and buyers at the same place. On this platform, almost every type of product is available, and you can purchase anything you want in any quantity.

It is easy for both suppliers and buyers to sell and pay on Alibaba with the help of various options we discussed above.

Hopefully, from our discussions, you get a lot of information that helps you in starting of business.

 

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FOUNDER’S NOTE
LeelineSourcing will always help you buy cheap and good quality goods from China.

sharline leelinesourcing founder


About the author

Sharline is the founder of LeelineSourcing.com. With 10 years of experience sourcing in China, She loves to share knowledge and ideas in sourcing bussiness.She writes only the truths which others are normally not willing to tell. This makes her posts distinguishable from other import & export articles.
2 Responses
  1. Mira Jannen Trangia

    This is the most reliable source of information about Alibaba which I have thought for a while. I’m wondering which payment option is most likely the safest and convenient way for me.

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