Alibaba is a supplier directory, an online platform created to search for factories and trading companies in China and other countries around the world. The site has also become one of the largest Chinese financial companies through the Alipay payment system. Due to the large number of customers, Alibaba offers a wide range of payment methods, from credit cards to PayPal and letters of credit. If the seller does not ship the products within the agreed time or does not meet all quality requirements, Alibaba Trade Assurance allows the buyer to request a refund. Today we present you the payment methods to buy on Alibaba.
Payment methods to buy on Alibaba – fees
Although Trade Assurance is theoretically free, clients must pay a fee for:
Payment processing fee for payments via:
Credit Card – The processing fee is 2.95% of the total transaction amount, which is automatically deducted from the payment. Payment is processed in 2-3 days.
Online Bank Payments – Processing fee varies for specific payment amounts. It takes 4-5 business days for US accounts) and 9-10 business days (for SEPA accounts) to process the payment after Alibaba.com has deducted the payment from your account.
T / T Telegraphic Transfer: The handling fee depends on the region and banks. Usually it takes 3-7 business days. Contact your bank for more details.
Western Union: The processing fee depends on the amount of the payment. The process takes one business day.
Ticket – The handling fee is 1.35% of the total transaction amount. It takes 2-4 business days.
Pay later: no administration fees. It takes 1-3 business days. It is only available to US merchants invited by Alibaba. Buyers cannot pay more than the credit granted.
E-Checking: The transaction fee is $ 15 per transaction. Payment through E-Checking takes between 4 and 5 business days.
Seller service fee after receiving payment
For orders over $ 5,000, the seller must pay 5% for wholesale products; 1% or 2% for customized products (1% of orders need to be shipped via Alibaba logistics service, 2% of order will not be shipped via Alibaba logistics service). However, when it comes to an order over $ 5,000, there is no service fee and the order must be submitted via One Touch.
Overview of payment methods for buying on Alibaba
Alibaba.com integrates numerous existing payment systems, including credit cards, telegraphic transfer, and Western Union. Transfers are one of the most widely used payment methods in the world. It turns out that banks charge their clients a flat transfer fee of between $ 30 and $ 50.
Advantages: Payments take 2 hours to reach the designated provider’s bank account.
Disadvantages: You can only use Visa and MasterCard cards. The payment limit per transaction is $ 12,000.
Bank transfer or T / T (telegraphic transfer)
Advantages: Widely accepted all over the world. Additionally, bank transfer fees have been set, which are especially beneficial for larger orders. In addition, it is possible to negotiate the payment terms in case of a lower initial payment and subsequent withdrawal of the balance, reducing the risk.
Disadvantages: The process takes between 5 and 7 business days. Be careful with tricks in contracts: any mistake when making the transfer will cause significant delays.
Recommendation: Take advantage of low fixed costs and use T / T for larger orders from trusted suppliers.
This option is only available if the country of registration is Brazil and the delivery address is in this country. Currency: USD. Processing fee: 1.35% of payments. Refund – Same refund process as credit cards, and takes 10-15 business days to receive.
Advantages: Payment is processed within 2-4 business days.
Disadvantages: this payment option is not available when using the Alibaba phone app; only possible on computers. The maximum payment limit is $ 3,000 per month per account.
Pay Later is a new way to pay for Trade Assurance orders.
Advantages: Limit up to $ 150,000 through Pay Later. The transfer takes 5 to 7 days. Competitive rates. Favorable conditions. No commissions for personalized transactions.
Cons: Pay Later is available only in the United States. The refund fee is 250 RMB each.
Available only to buyers with checking accounts at any bank in the United States and Europe.
Pros: low transaction fees ($ 15 per transaction). Fast transfers (4-5 business days deducting payment on your behalf after verifying your checking account and authorization from Alibaba.com).
Online transfer is a new form of payment in 16 European countries. Alibaba has established a partnership with Trustly and Ingenico who process payments.
Advantages: Payment made in the chosen currency.
Disadvantages: An additional fee is charged depending on the amount of the transfer. An order between $ 1 and $ 1,000 costs $ 15. From $ 1,001 to $ 10,000, that’s $ 20. If the order value exceeds $ 10,000, the additional cost will be $ 25.
Comparison of payment methods to buy on Alibaba
The most common and recommended practice is T / T telegraphic transfer in USD through Trade Assurance. Direct transfers to Chinese accounts require caution and are unlikely to be used if the recipient of the transfer is not known personally. Generally, for small importers, the most common payment methods are bank cards, bank transfers or T / T. For large orders, it is recommended to use T / T. Also, note that the maximum transaction amount for card payments credit is $ 20,000. Also, credit card companies charge a higher transaction fee compared to T / T payments.
If you want to buy on Alibaba you can do it directly from our Gold Member account at: https://dmb.en.alibaba.com/