6 Payment Methods Used in paying Your Chinese Artificial Flower Supplier

If you want to import goods from China, paying for ordered products is a very cautious thing. It often happens that the customer has already paid but the Chinese Artificial Flower Supplier has not received the payment. If the best payment method is not selected, both parties will spend a lot of time to solve the payment problem, and it will also delay the product transportation time. We have analyzed 6 payment methods for you.

Telegraphic Transfer (TT) / International Wire Transfer

This is probably the most common and most popular payment method in international trade after the barter system, especially for low-end transactions. Usually, the advance payment is sent before production, and the balance is sent according to the payment terms. In China, the normal payment terms are 30% deposit and 70% upon completion, especially when you just start working with Chinese Artificial Flower Supplier. The main risk for importers is losing their advance payment if something goes wrong.

Supplier’s payment risk: The buyer loses the order interest after paying the deposit or cannot pay the balance due to other factors (such as bankruptcy). Chinese Artificial Flower Supplier can often transfer stock to other buyers if the product is a standard, commonly used product. If it is a custom product, the seller may be in trouble. This is one of the reasons why for custom/unique products, suppliers (or at least smart ones) tend to ask for higher deposits, maybe 50%/50% or even 100% upfront.

Letter of Credit

A Letter of Credit (LC) is a payment mechanism whereby the bank undertakes to pay the Chinese Artificial Flower Supplier an agreed amount on behalf of the buyer subject to certain pre-determined conditions (product specifications, quality inspection requirements, etc.) being met. This is probably the safest payment method out there, at least in terms of “payment risk”, and a popular choice for transactions over $50,000. However, a letter of credit is not always feasible for small importers as the letter of credit is the most expensive form of payment with exorbitant bank charges and is also a document-heavy method. LCs can be difficult to understand initially, and it is recommended to use a certified documentary credit specialist for consultation and compliance at least for your first few transactions. Once you get the hang of these concepts, everything becomes a lot easier. So due to complexity and language barriers, small and many mid-range factories cannot accept LC payment. When choosing LC transactions, please note that there are many types of LC, please choose the most correct one to ensure transaction security.


It’s an easy way to pay for small orders and samples. However, most Chinese Artificial Flower Supplier do not accept PayPal payments for full or large orders. First, PayPal accounts are still harder to get in China than in the West.

The fees associated with PayPal and credit cards are high. A flat fee of 3% to 5% of the invoice value plus PayPal’s own marked currency conversion rate. Additionally, PayPal’s protection policies are considered complex, especially for cross-border transactions. Another risk of paying through PayPal is that most PayPal accounts in China are held by individuals rather than businesses, and there is a risk that the PayPal card will be locked if the number of PayPal transactions is too high.

purchasing agent

This is much safer and much more convenient if you buy through your local Chinese office. This is why some importers use local sourcing agents through escrow arrangements to source their orders. If you have a buying agent handling your imports from Chinese Artificial Flower Supplier, you can pay your supplier through them. Sourcing agents specialize in sourcing goods from overseas. Apart from the actual purchasing, a purchasing agent can also handle the entire purchasing process by screening and verifying suppliers, negotiating payment terms, organizing quality checks, and shipping goods. There are clear benefits to paying through a purchasing agent. If the sourcing agent has an office in your city or country, you can avoid international transactions and their associated risks. Experienced sourcing agents also work with verified Chinese suppliers, so the chances of encountering fraudulent suppliers through them are low. Buying agent fees can be high, but your agent can help you offset this by obtaining lower product prices from suppliers.  


Cash payment is common in China and it can often lead to lower prices for certain products.

However, cash is definitely the riskiest payment method for importers. If you’re not happy with your item or something goes wrong, there’s little protection.

You still face costs, especially those associated with any foreign exchange transactions. In addition to the stated fees, you also need to check the exchange rate markups you will face.

At the end of the day, while cash is popular in China, it is very risky for you. Not only that, but you also need to watch out for hidden fees in exchange rates.

Western Union

Western Union (WU) is widely accepted for small to medium transactions. It’s popular with suppliers, second only to Paypal because it’s fast, easy to use, and inexpensive for them.

WU is the preferred payment method for supplier sample payments and small payments.

However, there are risks. When you pay through WU, you are generally paying an individual, and once the money is sent, you have very little protection. WU should not be considered unless you know and trust your provider.

Sellers Union supports all of the above trading methods. If you are concerned this is an informal company. You can do not worry that Sellers Union was established in 1997 and has cooperation with many large supermarkets.

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