Sending money through telegraphic transfer (T/T), or paying by letter of credit (L/C), is slow and relatively complicated.
The wrong beneficiary name, or even address, can delay the payment for weeks, and there is no effective way to request a refund in case you get scammed by a supplier.
So, why aren’t more importers using payment services such as PayPal, that can send money instantly to suppliers – while also offering the chance of getting the money back if the products are not matching the specifications?
Keep reading, and learn why many suppliers refuse to accept PayPal payments, and what you can do to change their mind.
1. Most suppliers only accept PayPal payments when ordering product samples
PayPal is available to both businesses and individuals in both Mainland China and Hong Kong. Opening an account only takes minutes, and is as easy as anywhere else on the planet.
Yet, many Chinese suppliers, both factories and trading companies, don’t accept payments via PayPal.
Why is that?
First, it’s a matter of old habits.
Most suppliers are accustomed to the established payment methods, such as telegraphic transfer and letter of credit – while they are quick to dismiss newer payment methods.