What are the eight common foreign trade payment methods?

To do foreign trade business, you need to know how to find customers. You also need to choose a suitable, easy-to-use, and low-risk payment method to improve the efficiency of payment collection. What are the eight common foreign trade payment methods?

1. Wire Transfer

Telegraphic transfer is a payment method in which the remitting bank, upon application by the remitter, pays a certain amount of money to the remitting bank, which then sends a telegram or SWIFI message to its branch or agent bank (receiving bank) at the destination, instructing the receiving bank to pay a deposit to the payee.

2. Letter of Credit

A letter of credit is a written document that a bank gives to an exporter (seller) at the request of an importer (buyer) to guarantee the responsibility of paying for goods. In the letter of credit, the bank authorizes the exporter to issue a bill of exchange not exceeding the prescribed amount with the bank or a bank designated by it as the payee under the conditions stipulated in the letter of credit, and to attach shipping documents as required and collect the goods at the designated place on time.

3. Western Union

Western Union can get cash in a few minutes, and the seller has simple procedures, but because the funds arrive instantly, you should be cautious when using Western Union services, especially for larger payments.

4. PayPal

PayPal supports most independent websites, but it is difficult to withdraw money in China, the fees are high, and the overall costs are also high.

5. Check

Checks can be used for payment and collection, but there are some disadvantages to using checks for collection. First, the time period is very long. Second, there are certain restrictions on check collection in China. Sometimes when collecting checks, banks will require users to provide proof of service contracts and other documents.

6. Credit card payment

To collect payments via credit card, you need to open an online credit card payment service with a third-party payment company and open a credit card collection channel so that customers can pay directly with their credit cards.

7. Remittance

Hui Trade is a regular domestic payment institution that holds a payment license. It has launched a solution for collecting foreign trade payments, supporting 1039 market procurement trade collection, cross-border e-commerce 9610 collection, international freight collection, etc. It also supports third-party payment for private accounts.

8. Cash Payment

The management of cash payments is relatively strict. It is stipulated that for any cash payment exceeding 50,000 yuan in one day or cash payments exceeding 50,000 yuan several times in one day, the bank must register each payment internally, properly keep the relevant information, and file it with the local branch of the People's Bank of China on a monthly basis. At the same time, different countries also have restrictions on the entry and exit of cash. Please check the relevant national regulations for details.

In general, the eight common foreign trade payment methods are wire transfer, letter of credit, Western Union, PayPal, check, credit card collection, remittance collection and cash payment.